Manufacturing and services firms commit highest proportion of revenue to innovation

A survey of firms in the Sheffield City Region has found that manufacturing and services firms commit the highest proportion of revenue to innovation in their business plans.

The results of the Sheffield City Region Quarterly Economic Survey Q3 –based on local business responses – show that of those who say they innovate, 81% of manufacturing and 67% of services commit revenue to innovation/R&D in their business plans, but that 30% of firms don’t invest at all.

Prof. Tim Vorley, of Sheffield University Management School, said: “Innovation translates into growth as businesses benefit from increased sales, by accessing new markets and boosting productivity. While there are incentives and support available for companies looking to innovate, the QES results show they’re not always widely taken up which represents an opportunity for the Sheffield City Region Growth Hub.”

Of those firms that innovate,  84% do not claim any R&D tax relief and 82% have not accessed any public funding for innovation/R&D activities. The survey found that 33% perceive public funding to be ‘available but not easily accessible’ and that firms are more likely to innovate independently (32%) or with customers (29%) than with other businesses (20%) or universities (10%).

“Understandably, levels of innovation vary business to business and sector to sector,” added Prof. Vorley, “The challenge for businesses and government is to foster a more collaborative culture that sees innovation become the norm.”

The City Region boasts an Advanced Manufacturing Innovation District to encompass and connect the wealth of local business and academic ideas and abilities to boost business and grow the local economy, but the survey shows that more can be done.

The Economic Survey results will be used by the region’s Chambers and Local Enterprise Partnership to better inform local, regional and national government and policy-makers on these and other business issues and help them to address any barriers that firms currently face with innovation and other business issues.

The Sheffield City Region Business Growth Hub offers free business innovation support and can advise on funded technical project support, specialist innovation coaching, innovative grants, R&D tax credits, innovative frameworks and new project development.

The Survey – run by the Sheffield City Region’s  four Chambers of Commerce, with the support of the Local Enterprise Partnership, Growth Hub and Sheffield University Management School, and sponsored by The

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