Ayming analysis finds British tech companies are struggling to supply appropriate funding and expertise – prompting requires extra authorities assist
Ayming UK, a London-based consultancy specialising in innovation funding, has revealed new analysis detailing among the challenges at present being confronted by British tech companies.
One of many key takeaways revealed in Ayming’s third UK Innovation Barometer, was that whereas funding is a prime precedence for the Labour authorities, extra must be completed to create the suitable local weather for innovation within the nation.
The analysis surveyed 200 enterprise and finance leaders (e.g. C-suite, Heads of R&D and Innovation). Ayming advised accessibility to money and grants, which stays the most important barrier to innovating in the UK, must be improved.
Obstacles to innovation
Certainly, Ayming discovered that UK companies are calling for pressing, focused authorities assist to drive innovation and financial progress in 2025.
Digging down into the findings, the survey discovered {that a} lack of economic assets has turn out to be essentially the most important barrier to innovation, with over half of UK companies (56 p.c) counting on self-funding to drive their R&D efforts.
However the analysis discovered that solely 39 p.c of companies report utilising innovation grants, with eligibility necessities holding greater than a 3rd (37 p.c) of companies again from accessing the funding stream.
This funding shortfall has positioned acute strain on smaller companies, which have notably suffered from the instability of R&D funding schemes lately, Ayming famous.
Consequently, many SMEs have been pressured to deprioritise R&D enlargement: solely 14 p.c of SMEs named innovation as a prime precedence, down from 31 p.c in final yr’s report.
That mentioned, regardless of monetary constraints, UK companies are more and more adopting a long-term method to R&D, with 44 p.c establishing innovation methods that span the subsequent decade.
Funding framework reform
“These findings come at a pivotal second for UK enterprise,” famous Benjamin Craig, affiliate director of R&D Incentives at Ayming.
“Funding is clearly a precedence to the brand new Labour Authorities, evidenced by the sentiment of the Autumn Price range and the Worldwide Funding Summit,” mentioned Craig. “However the absence of reform to R&D funding frameworks is disappointing, and the Chancellor should contemplate whether or not the present system really fosters the entrepreneurial progress important for driving prosperity throughout the UK.”
“Labour’s give attention to stabilising funding streams will nevertheless be hailed as a welcome change by UK companies,” Craig added.
“Below Conservative management, the R&D and innovation panorama suffered from haphazard and inconsistent modifications to the system – so the long-term forecast of Labour’s trendy Industrial Technique and the OBR’s new decade-long progress forecasts are important foundations for long-term progress,” mentioned Craig.
“As we begin 2025, companies want the Authorities to put out a transparent method to innovation in the event that they’re going to achieve placing it on the coronary heart of economic methods”.
Key findings
So what areas did Ayming’s third UK Innovation Barometer determine as needing consideration? Effectively a few of its key findings embrace:
39 p.c of companies cite a scarcity of economic assets as the best barrier to innovation, carefully adopted by a scarcity of expertise and expertise (37 p.c).
44 p.c of companies have established innovation methods spanning the subsequent decade, highlighting a necessity for corresponding long-term and sustainable funding choices, following years of instability.
Value pressures are sidelining SME innovation. Value discount is the most important precedence for small companies (50 p.c), whereas simply 14 p.c named innovation as a prime precedence – down from 31 p.c in final yr’s report.
Spending cuts
The query stays whether or not the UK authorities and the general public purse has the monetary wiggle room to supply further funding to drive innovation within the years forward.
It needs to be remembered that the Labour authorities in August 2024 had confirmed that it was rolling again on tech and AI spending plans introduced by the earlier Conservative authorities.
Since Labour was voted into energy final yr, it has been chopping spending, together with the £1.3 billion earmarked for tech and AI initiatives.
