Study says that UK manufacturers are reaping the rewards of high levels of innovation
Wed 06 August 2014
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A new study from the manufacturers' organisation EEF says that UK manufacturers are reaping the rewards of high levels of innovation over the past few years. However, the 2014 EEF/Natwest Innovation Monitor shows strong demand is now putting pressure on internal resources from management time to working capital and, as a result manufacturers have focused on a smaller number of innovative activities aimed at satisfying existing customers.
Manufacturers continue to prioritise innovation, indeed most plan moderate increases in expenditure, but as with all areas of business activity, resources are spread more thinly.
This has led to an increase in the proportion of manufacturers who are concerned that their level of expenditure on innovation is not enough to keep pace with competitors, from 19% in 2013, to 26% in this year’s survey. This has worrying implications for the UK economy’s long-term competitiveness.
The report makes the following recommendations:
- Funding for Technology Strategy Board and Catapult Centres must be sustained
- Funding for the High Value Manufacturing Catapult should be increased and the structure adjusted to encourage SME engagement.
- The R&D tax credit should be maintained and the definition of R&D within the credit should remain broad and stable.
- Longer-term, Government should develop a framework for regular assessment of the breadth of science and innovation support to ensure all schemes remain well-directed and adequately funded.
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