According to a recent survey of UK manufacturers conducted by EEF, almost two thirds of firms launched new products over the course of the last three years in a bid to remain more competitive in their specialist areas.
However, out of responses from the 273 company directors surveyed, the same businesses also gave widespread reports that Britain is not keeping up to the same pace of innovation being demonstrated in other advanced global economies.
Approximately 30 per cent of respondents said that the level of financial investment they could commit to, for new product development, was not enough to match competitors, but economic factors meant they could not afford to spend more.
Among those having to limit investment for financial reasons were businesses connected to oil and gas supply chains, following a significant drop in prices.
Due to the potential for growth overseas, more UK firms – almost a third of those surveyed – said that boosting export levels is a key goal for the near future.
The Bank of England has made it clear that it expects the UK economy to grow by 2.8 per cent this year.
Information from separate Office for National Statistics data, however, revealed that the UK’s R&D spend is only 1.1 per cent of GDP, whereas in Germany the figure is 2.02 per cent.
Lee Hopley, EEF’s chief economist, said: “Manufacturers are finding that the results they achieve do not always match their ambition.
“Shortages of expertise, equipment and finance are holding them back.
“Manufacturers want to do more, and every additional pound invested in developing the products and services of tomorrow can help get the UK closer to its goal of have a more productive economy.”
