The Enterprise Research Centre has found that Research & Development (R&D) grants have boosted the economy by £43 billion, returning £5 for every £1 of taxpayer support.
The study found that employment at recipient businesses grew 23 per cent faster compared to other companies while those who received the grants created an estimated 150,000 new jobs in areas including biotechnology, medical equipment, engineering, life sciences and advanced manufacturing. Job creation from grants is strongest in London and the South East
Stephen Roper, Director of the Enterprise Research Centre, says: “This is the largest and most detailed study yet of the impact public funding for science and innovation has on growth at the firm level.
“It shows very clearly that grants to support R&D have a positive impact, creating jobs and fuelling growth in the high-tech, high value-added sectors that the UK must encourage to remain competitive on the world stage.”
Professor Roper continues: “It’s well established that innovation grants can help with commercialising new technology by providing firms with additional financial slack to undertake riskier research activity which might take time to deliver products or services that are market-ready.
“The greatest impact seems to be on smaller manufacturing businesses, which see the biggest boost to growth and productivity, helping them to catch up with more established firms.”
Prime Minister Theresa May has said it is her ambition is to transform Britain into the “global go-to place for scientists, innovators and tech investors”, backed by an extra £2 billion a year for R&D by the end of the current parliament, taking total spend to £4.7 billion. Funnelled in part through the new Industrial Strategy Challenge Fund.
Whilst R&D tax credits have proved to be a major boost to British business, many are still unaware that they can claim the credits to help fund research and development, often incorrectly thinking that their on-going enhancement of existing products and services does not quality, because “it is just what we do”.
Having helped many businesses across a variety of sectors make significant “money back for research and development” claims when some were previously unaware they could, we know first hand how important the R&D tax credit scheme is in encouraging innovation and increased spending on research and development activities by companies operating in the UK.
Our R&D tax credits specialists are on hand to maximise the value of any potential claim and manage the often complex process on your behalf.
If you would like to know more about how we can help you and your business, please contact Steve Govey or your usual Beavis Morgan Partner.
Further reading:
R&D Tax Credits – Why thousands of businesses are missing out
