The latter of which is democratising knowledge, improving efficiency and bolstering productivity. As a result, we’ll see more products coming to market quicker and services being hyper-personalised to increase customer experience.
But how can businesses fuel the innovation lifecycle every step of the way?
Funding innovation in 2024
Whether you’re investing in an idea, testing and prototyping, or commercialising your product, being able to fund the entire innovation process is vital. It can be the difference between bringing your ideas to life and leaving them dormant.
For some businesses this might require freeing up cash by selling assets or delving into their forecasts and making strategic decisions accordingly. For others, innovation could require external funding, whether it be through grants, crowdfunding or bank loans.
That being said, raising the capital and accessing funds in today’s economic climate is easier said than done. That’s where tax relief can be a real lifeline.
Fuelling the innovation life cycle with tax relief
So many innovative business owners we have spoken to over the years don’t realise they can claim both Research and Development Tax Relief (R&D) and Patent Box.
Working in tandem with one another, R&D and Patent Box can fuel different stages of the innovation life cycle. And unlike loans and grants, you don’t have to worry about interest rates or repayment schedules.
How does it work?
Both of the tax reliefs work by significantly reducing your corporation tax liability.
In practice, (for businesses with a patent/patents and who generate a profit from it) this is how claiming both Patent Box and R&D could fuel the innovation cycle: