Funding and tax breaks for innovative companies
In December, the pre-budget report announced three new measures designed to stimulate and reward innovation with a combination of funding and tax breaks.
- The announcement of a UK Innovation Investment Fund to ensure that GPB325 million of new venture capital is available to invest in Britain's businesses in the key growth sectors of life sciences, clean technology, digital and advanced manufacturing from early 2010. The aim is to grow this fund to GBP1 billion.
- A reduced rate of Corporation Tax on income derived from patents from April 2013 (known as a 'patent box'), to strengthen the incentives to invest in innovative industries and ensure the UK remains an attractive location for innovation. See our guide on how to get patent protection for your business.
- The facility to claim Research and Development (R&D) Relief for Corporation Tax is being extended, under the SME scheme. From the accounting period ending on or after 9 December 2009, small and medium sized businesses will not be required to own the intellectual property derived from that R&D to be eligible for the Relief. See our guide on Research and Development (R&D) Relief for Corporation Tax.
South East innovation
According to figures released in December by the Office for National Statistics (ONS), small businesses are as innovative as their larger counterparts: during 2000 to 2008, companies with less than 50 staff were responsible for 40 per cent of live patents. The ONS also found that the majority of patenting during this period took place in the South East, London and East Wales.
New inventions
Further independent sources report a surge of patent applications from private individuals and SMEs in 2009. These included ideas as diverse as a new cricket bat design; LED eco-lighting systems; ultra-sonic treatment patches; software for monitoring offshore drilling operations; a social network based search engine; a biodegradable irrigation system and a system for meta-tagging video content for the media industry.
The rise also reflects a growing recognition that securing a good patent can be invaluable in terms of making money in the long-term from an invention.
Future for the South East
A major report was published in November that outlined the areas of the country where different types of industrial, scientific and commercial innovation were concentrated.
The South East region hosts major hotspots for the following sectors:
- life sciences including NHS, pharmaceutical, biotechnology, medical device and diagnostic companies
- low carbon vehicle innovation
- digital media including the computer games sector
- creative and cultural industry
- advanced manufacturing
Innovation and Growth Teams
To support these sectors, and many others that are earmarked for major growth such as civil nuclear and off-shore wind, the South East England Development Agency (SEEDA) is investing in expert Innovation and Growth Teams backed by local economic partnerships, universities and Business Link in:
- West Surrey and North East Hants
- Solent
- Thames Valley
- Buckinghamshire and Milton Keynes
- Kent and Medway
- East Surrey and West Sussex
- Oxfordshire
- East Sussex and Brighton and Hove
Want to know how to get access to these opportunities?
The Business Link innovation team can help you through the whole process of turning your ideas into profitable products or services. We are able to guide you from protecting your idea to sourcing knowledge, technology and grant funding. To find out more about the Business Link innovation support programme, email innovation@businesslinksoutheast.co.uk
14 Jan 2010