Innovation - Protecting the UK's Long-term Competitiveness
The MCA’s Dealing with the Downturn series continues with a call to the Government.
Innovation – Protecting the UK’s long term competitiveness, compiled in consultation with leading innovation experts, warns that UK private sector expenditure on R&D could fall by £4bn in 2009.
The report, based on a survey of consultants who work with more than 90 of the FTSE 100, found that 9 out of 10 UK companies have cut their capital expenditure (a key measure of innovation) by an averages of 25% which equates to a projected fall of almost £4bn in R&D spend in 2009. 4 out of 5 respondents believe that the UK’s long term competitiveness is being damaged by lack of investment – with 9 out of 10 respondents citing innovation as a crucial tool to mitigate the effects of the recession.
Over two thirds of respondents supported increased tax breaks for R&D and other capital investment as the most important step the Government could take to encourage innovation in business. The MCA recommends that the Government should announce such measures in the Budget this week.
If you would like to find out more about Innovation - Protecting the UK’s long term competitiveness please contact hilary.downes@mca.org.uk or call 020 7321 4810.
