This article has been submitted by LimestoneGrey
The importance of emerging technologies has been a constant and familiar message from policymakers and business leaders for many years. But what is emerging technology and what role does research and development (R&D) have in it?
For many businesses, without R&D there can be no innovation. This is particularly true of businesses in sectors such as technology, the life sciences and manufacturing where bringing new products to market is key to growth.
As a nation of start-ups and entrepreneurs, Wales is a country that thrives off networks of SMEs that work together and collaborate to compete with larger corporations. Technology hubs like Cardiff, Newport, Swansea and Wrexham all provide conditions that allow research and development to thrive and prosper.
Entrepreneurs and SMEs working with emerging technologies can greatly benefit from R&D tax credits. It allows smaller businesses to develop experimental technology and push boundaries in their research knowing that there is the safety net of tax credits where up to 33% can be claimed back.
Wales has a competitive advantage in several anticipated growth areas, but there is a need to ensure that Wales becomes a leader and provider, rather than just a consumer of emerging technologies.
Wales’ strengths in emerging technologies are in areas such as cyber technology, compound semi-conductors and fintech. R&D tax credits not only support development in such emerging technologies but can also accelerate this progress, putting Wales on the map as a leader in these sectors.
In a world where technologies and skills are constantly changing, being successful means being at least abreast of the change, or better still, leading it. To achieve this means being first with the new ideas and doing that takes research and experimentation, and the development work that turns a great idea into something of commercial value.
Both UK and Welsh governments have put a lot of effort in recent years into encouraging more R&D spending and innovation among businesses. The UK Government’s R&D tax credits are designed to encourage companies to develop advances in science or technology that relate to their business. Both large and small companies can qualify for the relief, and the project doesn’t have to have been successful to qualify.