Innovation is key to Covid recovery, report finds

15% of British SMEs believe the government is creating an environment fit for innovation despite over three-quarters of those surveyed believing it is crucial to overcoming the coronavirus pandemic, new research from R&D firm GovGrant reveals.

Conducting a survey of over 500 SME decision-makers over 7 different sectors, the data from GovGrant suggests that 85% of respondents acknowledged the importance of innovation when overcoming a crisis, but only 26% of respondents believed their current activity was "highly innovative."

The government is currently spending a fortune bailing the economy out, but with the several lockdown measures in place such as furlough, CIBL's and BBLs soon coming to an end and with Boris Johnson announcing new regulations to ease a second wave, GovGrant suggests that more must be done to keep SMEs afloat.

Luke Hamm, CEO of GovGrant, said: “Despite the Government’s R&D Roadmap outlining its commitment to R&D and innovation, our research shows the need for further support when it comes to recognising innovative activity. SMEs urgently need clarity and a common definition of innovation that transcends sectors, geography and generations if we’re going to plug the gap between the support that’s available and how SMEs make use of it. This is particularly true when it comes to intellectual property.”

The research also hints there is general confusion as to what can be considered innovation. 42% of respondents answered that innovation was tiny and incremental changes implemented daily, with the rest of the surveyed SMEs stating that it happened rarely - but with considerable impact - or sporadically.

The research also suggests that 43% of UK SMEs do not have anyone in charge of the commercialisation of intellectual property at a board level. As a result, roughly a quarter (24%) thought the main purpose of a patent was to add commercial value, and only one fifth said they had no strategy in place to track their intellectual property.

Mr Hamm added: “Innovation has never been more important for creating a resilient and productive economy post-COVID-19, especially with Brexit and the end of the transition period also fast approaching. We need to be taking intellectual property much more seriously.

"The Government must do more to improve awareness and accessibility of its support schemes are going to invest in their R&D and thrive. We urgently need to review the patent process and make it attractive on the global stage.”

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