Creative minds most valued asset to Yorkshire SME innovation, according to new research

Creative people are more important to Yorkshire SMEs than generating with new ideas, according to new research by Yorkshire Bank.

The new survey reveals small businesses in Yorkshire are investing in creative skills in a bid to create growth.

In a survey of business leaders at more than 750 UK-based SMEs, more than half of respondents in Yorkshire (57%), said having the right people and skills is the single most important factor for a business to be innovative.

This is compared to less than a quarter (21%) who believes having the right idea is most important.

As a result, the research suggests Yorkshire SMEs have prioritised staff training and development over other investment opportunities in the past year, and intend to do so again in the next 12 months. New equipment, technology and investment in premises, are also key, according to the survey.

The concept of people coming first is underlined when asked whether the UK economy has the right skills, or the right environment, to cater for creativity and innovation. Less than half (47%) of respondents feel the UK economy fosters innovation but this increases to 60% who believe the economy has the right creative skills for growth.

However, businesses could be selling themselves short when it comes to accessing the support available for innovation or research and development (R&D) activities.

According to the survey, less than a quarter (23%) of businesses have ever accessed Government incentives such as R&D tax credits or Patent Box, with only the same amount (23%) planning to do so in the future.

The approach to financing innovation and creativity is also varied, with only 40% of SMEs in Yorkshire setting aside a dedicated budget for research and development.

SME experts at Yorkshire Bank believe the ability and opportunity to develop skills and access support for innovation is critical as the economy experiences a shift in industry.

According to the survey, it appears there is an increasing number of businesses which understand the value of their intangible assets – assets such as a company’s brand or intellectual property. Nearly half (43%) of Yorkshire businesses said they had an accurate understanding of the value of their intangible assets. Six months ago only 38% were able to say the same when asked the identical question by the Bank.

Simon Wright, Regional Director of Business and Private Banking at Yorkshire Bank, said: “Innovation comes in many forms, not just cutting-edge technology or design. For many service-led industries this could mean being innovative and creative to meet customer demands, or approaching the market in a different way to competitors. What is important is that businesses continually review their performance and how they serve customers to ensure they are on top of their game.

“In today’s increasingly digital economy, where customer demands are higher than ever before, innovation is even more crucial. We’ve seen the make-up of our economy move from one of heavy industry to one of knowledge. This means growing businesses are often rich with intellectual property and intangible assets, rather than premises, plant or machinery.”

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