As the business landscape changes, British technology creativity and innovation puts its entrepreneurs in a strong position to take advantage of the trends highlighted in the HSBC report. For example the report predicts that manufacturing will repatriate to the UK from low cost labour centres to satisfy increasing demand for speed and flexibility in production, creating a market in which products can be customised according to individual needs and adapted rapidly to take advantage of new markets. Highly innovative technology is key to making this happen and we have the opportunity to exploit this to ensure that products are "Made in Britain"; not just to satisfy national pride but because it makes solid business sense.
However the report also highlights how, increasingly, smaller companies can compete in world markets. This is positive for British companies which have access to new and emerging markets to support rapid growth, but it also demonstrates the importance of protecting the innovations underpinning their competitive edge.
Central to protecting innovation are intellectual property rights (IPRs) such as patents, trade marks and registered designs. Effective use of patents to protect technological innovations, trade marks to protect brands and registering designs allows British companies to keep the advantages they have, that can otherwise rapidly be eroded away. What I tend to see is that those companies which are successful are the ones which can offer something different; IPRs allow them to maintain that difference.
In recent years the UK has begun to lag behind other countries in applying for patents and this might be partly due to a perception that patents are complex and expensive to acquire and enforce. However this needn't be the case: it's all about getting the right IP strategy from the start: one that's aligned with the business objectives but gives flexibility to adapt as new opportunities emerge. Businesses should also not be frightened off at the prospect of enforcing rights. In most cases the IPRs act as an effective deterrent without ever having to go to court and if legal action is necessary it's often a lot less expensive than it used to be.
For companies that want to grow rapidly, getting the right investment is likely to be key. Here intellectual property rights are often the most important asset that investors are looking for; they want to know that what they are investing in is unique and well protected.
There is another reason why getting some patents might be a smart move: it may soon save some tax. The government has announced that it plans to introduce a 'patent box' scheme which means a significantly reduced rate of corporation tax for income earned from patents. The details are awaiting the outcome of consultation but businesses should not wait. Companies that want to benefit most from the new ways of doing business need to put an IP strategy at the heart of their business plans now.
Adrian Samuels
