Innovation by UK corporations has elevated however entry to finance stays a key barrier, new analysis reveals.
In its newest ‘State of Innovation’ report, Innovate UK stated 60% of companies made modifications to services or products over the past yr, up from 56% in 2024 and a return to 2023 ranges.
The pattern was stronger for ‘frontier corporations’, these that are the primary to introduce new services or products in comparison with their rivals, with 76% innovating within the final yr, up from 68%.
As well as, 51% of UK companies are planning to put money into analysis and improvement within the subsequent 12 months, up from 47% in 2024. Amongst frontier corporations, this rises to 71%.
Regardless of the positivity, half of corporations highlighted limitations holding up their innovation exercise, with three quarters saying a scarcity of financial institution or fairness finance is the largest problem.
Dan Hodges, deputy director of technique at Innovate UK, stated:
“The outcomes present each causes to be cheerful, and a few trigger for concern. It’s encouraging to see funding intention rising, notably amongst SMEs, however massive corporations could possibly be pulling again, signalling some uncertainty.
“The findings underline each alternative and urgency. When companies can safe the funding, sources and recommendation they want, they innovate extra and develop faster.
“Eradicating friction ought to be a key focus to assist corporations to show this ambition into actuality, and in flip strengthen the UK’s financial place.”
