Research and development (R&D) tax credits provide a powerful incentive for many businesses to pursue innovation in the interest of overcoming internal or external industry obstacles.
As such, R&D projects often boast a library of benefits for companies big or small - meaning fostering a culture of R&D within your business could (and likely will) pay dividends.
That’s why, in today’s post, we’re exploring how (and why) you should look to infuse research and development into your business’s culture to help your company thrive in the long term.
Why R&D matters
R&D is important because it enables companies to remain competitive, or even become industry leaders, in constantly evolving markets.
Thanks to government subsidisation and the potential of a temporary monopoly on any given area of your sector, successful R&D projects have the ability to take your business to the next level - with the potential to boost profits, increase brand exposure and improve processes.
With this in mind, the importance of having a culture of R&D within your business speaks for itself.
How to instil a culture of R&D
Fostering a culture of R&D within your business ensures a strategic approach to R&D by integrating it as a regular consideration of your internal operations. But if your company currently lacks a culture of innovation, research and development, where do you start?
Like everything else, fostering a culture of R&D starts with education.
Take the time to educate both yourself and - once you’re confident you have all the right know-how - your team. This will ensure everyone in your business understands the fundamentals of R&D, increasing the likelihood of it being factored into decision-making. Better yet, it will also ensure your financial records are better optimised for R&D claims by being equipped with the knowledge of what HMRC is looking for - ensuring a smoother and more efficient claim process.
For a culture to be successfully integrated into any business, it must be readily embraced by employees. With that in mind, aside from inspiring existing employees through education, you could also look to recruit as a means of promoting innovation.
With a focus on sourcing new skills and perspectives, diversifying your workforce ensures a more competitive offering, which is integral to the pursuit of creativity, problem-solving and, ultimately, innovation.
Culture and people go together like bread and butter, so your employees should always be your sole focus when looking to instil a culture of R&D in your business.
By raising awareness of what R&D is and the plethora of benefits that accompany it, you’ll find an R&D mindset becomes naturally incorporated into everyday processes and decision-making, with an improved ability to identify and pursue the available avenues. Ultimately, this means bigger and more worthwhile claims, to the inevitable benefit of your business and the wider industry.
Looking to foster a culture of R&D in your business but need a hand with your claims? Not to worry. Get in touch with Lumo today to learn more about how we can help.