Ian Rowland’s recent article for Grant
Thornton highlights a reality I see every day in my
work with innovative businesses across the North West: while the
region is rich with talent, ideas and industrial capability, rising
costs and increasing scrutiny are putting pressure on
companies’ ability to invest and scale. His analysis of the
shifting R&D tax landscape is especially timely, with claim
volumes down and compliance expectations higher than ever.
What resonated most with me is Ian’s point about the need
for companies to adapt if they want to continue unlocking value
from the incentives available – this applies equally to a
business’s intellectual property (IP) strategy as it does to
its approach to taxation.
In my part of the conversation, I touched on the role that IP
rights play in protecting and amplifying the very innovation that
R&D incentives are designed to encourage. I want to build on
that point here, because too often businesses view patents,
trademarks or design protection as optional – something to
“get around to” once growth is already secured. In
reality, strong IP foundations are essential for creating
long‑term value.
We’re increasingly seeing that businesses who integrate
their IP strategy with their tax strategy are the ones best
positioned to weather economic pressures. Patent Box is an obvious
example. As Ian highlighted, it remains heavily skewed towards
larger companies, yet the opportunity for SMEs is significant. For
many companies, Patent Box can offset the costs associated with
protecting new technology – effectively transforming patents
from a perceived expense into both a defensive asset and a
financial benefit.
But beyond the tax benefit, the strategic value of IP is often
underestimated. Rights over brands, software, product appearance
and technical innovation don’t just secure competitive
position; they also enhance licensing opportunities, strengthen
investor confidence and create identifiable assets on the balance
sheet. In a market where scrutiny is increasing and margins are
tightening, these factors matter.
Ian is absolutely right: the North West is well‑placed to
deliver on the ambitions of Invest 2035. But doing so requires
businesses to be disciplined and forward-thinking in protecting and
commercialising their innovation. Bringing R&D incentives and
IP strategy together is one of the most powerful ways to achieve
this.
If you’d like to explore how patents or other IP rights
could support your tax planning, investment case or broader growth
strategy, I’m always happy to discuss.
Whilst R&D tax incentives and Patent Box provide a reduction
in the financial burden to encourage companies to innovate and
commercialise R&D, intellectual property rights provide the
means to protect the investment made by companies to fund the
innovation in the first place.
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