IP to aid economic recovery
Sep 15 2009 by Sarah Green, The Journal
INTELLECTUAL property (IP) should be the crown jewel in UK economic recovery. The CBI has unveiled a six-point plan to help underpin the UK's reputation as a world leader in developing and exploiting IP, including a serious re-think of the current tax system.
We must have a stable and competitive tax framework if we’re to incentivise IP development and exploitation.
We currently have a strong R&D tax credit scheme. But other countries are fast catching up. The US has recently decided that its R&D tax credit is so important it will make the credit permanent. Any plans to remove the UK’s R&D tax credit should be rejected out of hand as dangerously short-sighted.
The CBI’s six proposals are:
The Intellectual Property Office (IPO) should act as a “champion for IP-intensive companies” across government. UK Trade & Investment and the IPO should collaborate to provide a one-stop-shop for any prospective foreign investor in IP-intensive industries.
The IP architecture for patents, copyright, designs and trademarks must be “fit for purpose” for all businesses in the global economy. This will require specific actions such as the introduction of a community patent within the European Union.
All relevant future tax changes should have to pass the test “will it make the UK a more attractive place for IP-intensive businesses to invest in, develop and exploit IP?” The government should also give serious consideration to a “royalty box” approach to encourage companies to register their IP in the UK and further enhance the R&D tax credit scheme to encourage more research and development in the UK.
The quality and quantity of graduates, particularly with STEM skills, must be increased, by encouraging the best students to get science qualifications. The government should also invest in laboratories in schools.
The government should take more steps to improve collaboration between universities and business.
The government must take action to ensure venture capital funding to IP intensive start-up companies. It should establish a new Industrial and Commercial Financial Corporation to provide development finance for IP- intensive businesses in the UK for the health of the economy.
More details will feature in a new CBI report this month, called “Ripe for success: making the UK the place to develop and exploit IP.” As innovation is at the heart of the region’s competitiveness, the ability to protect and exploit our intellectual property is key to our success.
Sarah Green is regional director CBI North East
