A new report, commissioned by the Intellectual Property Office (IPO), has revealed that the UK is spending larger amounts on innovation, know-how and ideas – so called ‘intangible assets’ – rather than traditional ‘bricks and mortar’ investment.
Research indicates that intangible investment, which includes expenditure on R&D, software development and product design, reached £133Bn in 2014 – 9% higher than straightforward spending on such tangibles as property, machinery, and IT infrastructure.
It’s an intriguing trend – one that speaks volumes of the UK’s shifting priorities. Since the turn of the century intangible investment has increased by an astounding £45Bn, further highlighting Great Britain’s role in the global ‘knowledge economy’. And while investment in tangible assets has risen by 38% – from £87.9Bn to £121Bn – over the same period, intangibles continue to outstrip more orthodox methods of spending at a quite considerable rate.
Why is this? Historically, British businesses have often been accused of underinvestment. Indeed, in recent past, former Chancellor of the Exchequer George Osborne claimed that the UK doesn’t “train enough or build enough or invest enough”. The IPO’s findings seem to fly in the face of conventional thinking however, indicating that UK businesses are perhaps more progressive than in previous years.
The report also underscores the significance of both the manufacturing and financial industries to the UK’s burgeoning innovation economy. Bafflingly, these two sectors account for just 20% of total hours worked but are responsible for 58% of all intangible investment.
Also of interest, in 2014 more than half of intangible investments (53%) were protected by Intellectual Property Rights (IPRs) – a 3% increase from 2011. Of those assets:
- 25% were protected by copyright.
- 11% were protected by trademarks.
- 11% were protected by design rights.
- 6% were protected by patents.
The Government previously identified innovation as a crucial ingredient in the UK’s drive towards economic growth up and down the country, and IP rights are playing a greater role than ever before.
Baroness Neville-Rolfe, Minister of State for Energy and Intellectual Property, said: “The UK has an impressive track record when it comes to innovation and creativity. Investment in intangible assets like research and patents helps businesses grow – which is why the UK has a strong system in place to protect their IP rights, and encourage further investment.
“Our intellectual property regime has helped create an environment in which innovators and creators can prosper knowing full well that their hard work will be rewarded and rigorously protected.”
Tony Rollins, President of the Chartered Institute of Patent Attorneys, added: “Investment in the protection of intellectual property is a vital driver of economic growth: it helps to maximise profits which fund further research and development into new ideas.
“CIPA is proud of its excellent relationship with Government and innovative business. The IP system encourages investment and research thanks to high quality practices, insightful policy-making and excellent work such as this report.”
To read the report in full, please visit:
Intellectual Property Post-Brexit
There’s cause for concern however. The shock outcome of the EU referendum has led to some speculation over the future of many of the UK’s long-standing intellectual property laws. Both the IPO and the industry at large have moved to allay those fears, with the Government publishing ‘IP and Brexit: The Facts’ to help clarify the situation.
In the short-term it’s business as usual. As Jo Joyce, IP and Information Rights Associate for international law firm Taylor Wessing, states: “We know that the decision to leave the EU will be followed by withdrawal negotiations and an adjustment period likely to last several years. The most important thing for IP practitioners and owners to remember is that there is currently no need to panic.”
But what exactly is up for debate? According to Jo: “The primary areas of concern will be working out what to do about EU rights currently valid in the UK and how to handle ongoing litigation involving such rights. More broadly, the UK will have to plan its transition to ensure that the decisions of UK courts are respected and enforceable beyond our borders. Whilst this might involve EEA and/or Lugano Convention membership, any number of mechanisms could be employed to achieve the desired ends.”
Intellectual property is just one of a myriad of issues that will need to be addressed once Article 50 is triggered. But if the UK economy is to remain in good working order, businesses will need greater assurance of their own intellectual property rights – and they will look to their Government for guidance.
For more information, please visit:
If you would like to read more articles like this then please click here
The post The Innovation Economy: UK businesses invest £133Bn in intangible assets appeared first on UK Construction Online.
Walang komento:
Mag-post ng isang Komento