R&D intensive businesses in Wales: Innovation and contribution to turnover and employment

R&D INTENSIVE BUSINESSES IN WALES — MARCH 2024 4 Executive Summary Innovation In terms of innovation, evidence from the UK Across the UK, as in Wales, economic risks Innovation Survey suggests that Welsh R&D and the high costs of innovation are the main intensive firms were marginally less likely barriers to innovation in R&D intensive firms, than English R&D intensive firms to introduce followed. [...] For the proportion of R&D intensive firms in Wales example, the cost of finance was reported as engaging in process innovation – 24.8 per cent – a barrier to innovation by 20.8 percent of R&D a level considerably below that in other parts of intensive firms in Wales compared to 28.1% of the UK (30.5-31.6 per cent). [...] 3.2 Variations in policy support across the UK Across the nations of the UK public support UKRI support is available to all firms across for R&D and innovation varies significantly the UK and amounted to £126m in Wales in although some elements of the support financial year 2020-21 of which £40m was regime are UK-wide. [...] Both compare well Across the UK, as in Wales, economic risks with the majority of UK regions and are notably and the high costs of innovation are the main higher than the contribution of high R&D barriers to innovation in R&D intensive firms, intensity firms to business turnover in Scotland. [...] Other firms were put off seeking In Wales – and across the UK - economic risks public funding for their innovation activity and the high costs of innovation are the main due to the time-consuming nature of the barriers to innovation in R&D intensive firms, application process.