Its plea follows the publication of a new report by Sir James Dyson, in which the inventor sets out his vision for the economic future of high-tech businesses in the UK.
Ingenious Britain: Making the UK the Leading High-tech Exporter in Europe was researched and compiled at the invitation of Conservative leader David Cameron, who plans to include some of its recommendations in his party's policy strategy. Dyson outlines a series of measures that government and the financial services sector could take in order to stimulate growth in UK technology.
'Too often,' Dyson wrote, 'UK investors are reluctant to take a punt on technology, science or engineering. Private equity is drawn to larger, less risky, leveraged buy-outs, and banks shy away from innovation. The credit crunch has only amplified the situation, our once overactive financial services sector lacking the foresight to promote economic growth.'
Dyson quoted World Intellectual Property Organisation (WIPO) figures for patent filings in 2007. The UK's total of 17,000 – compared with 240,000 for the US and 330,000 for Japan – provides, in his view, clear evidence that the UK's financial structure is not supporting innovation. 'A lower corporation tax rate is prudent as the economy recovers,' he wrote. 'But if we are to rebalance the economy, extraordinary action needs to be taken now. Tax credits can be an excellent way of supporting companies willing to risk their own capital in R&D. The current system is well intentioned but not well targeted.'
He added that a Conservative government 'should refocus R&D tax credits on high tech companies, small businesses and new start-ups in order to stimulate a new wave of technology. When the public finances allow, the rate should be increased to 200%'. Loss-making small companies, Dyson argued, 'also need greater help, and the claim process must be streamlined. These changes need not necessarily lead to a higher overall cost to the exchequer'.
While compiling his report, Dyson harvested views from several leading intangible assets experts, including Paul Leonard and Ian Harvey of the IP Institute.
The CBI has broadly welcomed the report, but feels it is too narrowly focused. CBI enterprise and innovation head Dr Tim Bradshaw said: 'Science and engineering need greater backing if the UK is to create more skilled jobs and attract global investment. The report makes some positive suggestions, such as improving science teaching in schools.
'However, R&D tax credits should not be restricted to SMEs and high-tech firms, but should be available to companies of all sizes and sectors. This would encourage all businesses to grow through investment and innovation. Similarly, the Enterprise Investment Scheme (EIS) should concentrate on businesses with high-growth potential, rather than Dyson's proposal that it [should] focus on high-tech firms alone.'
David Cameron, meanwhile, said that Dyson's report 'represents an exciting and ambitious step forward in our desire to make Britain Europe's leading generator of new technology'.
Cameron added: 'In it are the ideas that will help us create new, high-paying jobs right across our country. Dyson is one of Britain's biggest success stories and knows better than any bureaucrat how you start a business, build it up and start selling to the world – and he's put that knowledge into this blueprint for creating a generation of innovation and enterprise.'
