INVESTING IN INNOVATION
The UK is the fourth most innovative country in the world, according to the latest Global Innovation Index, and the Government’s Industrial Strategy is aiming to increase spending on R&D by 2.4% by 2027. For technology businesses, it is important to take advantage of Government-backed networks and programmes whilst developing a strategic plan and practising strong working capital management. This approach will improve access to the finance needed for R&D activities.
SMART DATA ADVANTAGE
Many technology businesses own valuable data providing insights into key markets and consumer behaviour. Turning this information into Smart Data can deliver a significant competitive advantage and is integral to the development of AI systems, machine learning and the Internet of Things.
TAXATION
Technology businesses may be eligible for tax relief to offset their expenditure on R&D activities. The relief available including R&D tax relief and the Patent Box regime, can be complex to calculate in some areas and businesses often benefit from professional advice, especially with HMRC tightening rules for qualifying submissions.
TALENT
The UK’s technology sector is reliant on skilled workers from overseas and its ability to source talent from the EU and other parts of the world will remain important in the future. As well as sourcing talent globally, UK technology businesses should invest in talent development and retention strategies within their own organisations. With our HR service offering and HLB global network we are always willing to assist clients in this vital area.
FUNDING
It has never been easy to fund the long delay from having a great idea through to prototype and then commercial exploitation, and a funding gap still exists. Companies need advice in securing the right funding at the right stage, whether that be trade finance, stock finance, private equity, MBI (Management Buy in Finance) and EIS funding or looking at options including government and LEP (Local Enterprise Partnership) innovation grants, and crowd funding.
CYBER SECURITY
Technology businesses can be more prone to cyber attack because they own large amounts valuable data. As early adopters of new technologies, which have not yet been fully commercialised, this data is likely to have significant value.
Businesses may also be more vulnerable to attack, due to the widespread use of apps and collaborative working practices, which can make data protection more challenging.