High growth businesses in Yorkshire are calling for greater support to help drive innovation and growth, amidst concern that policy is not keeping pace with the ambitions of some of the region’s most innovative companies.

The majority of regional businesses (95%) believe the Government’s Industrial Strategy could do more to support innovation, according to a new report from accountancy and business advisory firm, BDO.

The findings came as senior business leaders met in Manchester last Friday for the Innovation Nation Summit - a “landmark gathering to turn ambition into action with the country’s most influential CEOs, founders, investors and policymakers”. Organised by former prime minister Gordon Brown and backed by the government, the summit sought to lift the UK’s competitiveness.

BDO’s Innovate to Grow: Unlocking the UK’s Power to Innovate report shows that regionally there is a strong commitment to innovation, with 89% of respondents to BDO’s survey saying they expect their innovation spend to increase over the next two years. Meanwhile, 93% of Yorkshire businesses reported ‘worthwhile’ to ‘excellent’ returns on what they have already invested.

However, high growth businesses continue to face significant barriers to innovation. The three most commonly cited in Yorkshire were financial constraints, limited time and resources, and skills gaps.

The report draws on the insights from 500 senior executives in UK businesses, including CEOs, CFOs, COOs and Heads of Tax from five of the sectors identified as having high growth potential in the UK’s Industrial Strategy.

It shows that just 5% of Yorkshire business leaders feel the UK Industrial Strategy effectively supports innovation – while the vast majority (95%) suggested there is room for improvement.

When asked how the Government could provide better support, over half of regional businesses (61%) said they would welcome greater support for innovation and R&D, closely followed by 51% who said more targeted skills and workforce development policies were required. More than two-fifths (44%) said they’d like to see a stronger focus on their sector, meanwhile better access to finance and investment incentives was an ask from 42% of the cohort.

Romane Reeves

There are many Yorkshire businesses already investing in innovation and seeing a positive return on their investment. They are, in many respects, the poster children for UK innovation, and their experiences highlight what is possible. But they also report real barriers to their continued progress.

The overwhelming response by Yorkshire businesses that the UK Industrial Strategy could do more to support innovation is not a fringe view; it is a near-unanimous signal from the businesses best-placed to judge.

This raises important questions. What more should the Government be doing to support innovation in the economy – and how much more growth could be achieved if innovators could overcome these barriers? And what can other businesses still striving to scale learn from those already making it work?

The report also highlights the vital role of the mid-market in the UK’s innovation future. These businesses generate more than 40% of private sector revenues and employ 11.1 million people, representing more than one in three UK private sector jobs.

BDO’s new Mid-Market Manifesto sets out a list of targeted policy ideas to create a stable growth environment for mid-sized businesses to scale further. This includes improving access to capital, addressing skills shortages and simplifying the tax system, similar themes highlighted by respondents in innovation survey.

To read the new BDO report, Innovate to Grow: Unlocking the UK’s Power to Innovate, visit www.bdo.co.uk/innovate