In March 2023, the UK government launched the International Technology Strategy with the goal of transforming the UK into a tech superpower by 2030. In doing so, it promises to work closely with governments, academia and industry to create international partnerships with emerging science and technology nations, create jobs and opportunities for tech businesses across the country. This move should help businesses looking to launch innovative technologies in the coming years, but what other advantages exist for tech companies looking to launch products in the UK.
Fostering tech excellence
The UK is ranked fourth in the Global Innovation Index for 2022 and ranked 12th in the 2022 Network Readiness Index. It is renowned for a thriving tech ecosystem. Many of the world’s biggest tech companies have headquarters in the UK including Google, Facebook and Amazon. As such, the country is an ideal place for companies to showcase technological advances. This can mean a significant reputational advantage when attracting interest from customers, as well as greater opportunities when it comes to strategic partnerships and collaborations.
Access to talent and centres of excellence
The UK has a highly skilled workforce and a huge talent pool of experienced professionals, researchers and engineers across many technology sectors. The country’s prestigious universities and research establishments serve as talent pipelines fostering a culture of collaboration and knowledge exchange.
For companies launching new technologies, the International Technology Strategy promises access to knowledge, talent and funding, as well as a ready-built system of technology hubs and infrastructure that can help companies in their goals to create, launch and market innovative products and gain a foothold as a market leader in their niche.
Funding opportunities and tax advantages
There’s also relatively easy access to venture capital. The country is home to numerous technology hubs, incubators and accelerators and is in the crosshairs of many international investors and venture capitalists. Small and medium-sized companies can benefit from venture capital schemes that offer tax reliefs for investors, making the UK an ideal place to start, finance and expand a business.
Fact: more than half of all UK-based R&D business expenditure is undertaken by foreign companies due to generous financial support and tax incentives for innovation in the UK.
Foreign startups can take advantage of the UK startup environment
A startup founded in a jurisdiction other than the UK can become a subsidiary of a new UK parent company. The shareholders of the non-UK startup transfer their shareholdings to a UK parent company in return for shares in the parent company and enjoy most of the benefits of being incorporated in the UK. The process is known as “Flipping Up”, and it can be complicated. In order to do this to gain most benefit to the company, it’s vital that the business secures legal advice from a law firm such as JPP Law.
Intellectual property protection (IP)
The UK has a world class IP regime that has helped produce 78 Nobel prize winners, only the US has more. This regime is designed to protect names, ideas, products designs and the written word. The UK’s Patent Box also offers companies a corporation tax rate of 10% (against a current rate of 19%) on profits generated from inventions patented in the UK.
Starting a Business in the UK
JPP Law has helped hundreds of businesses, both in the UK and abroad, to take advantage of the strong UK startup environment. Startup businesses need very specific legal support to guide them through investment, innovation challenges and rapid growth and we have the knowledge to help. For an initial, free discussion about your business goals, use the book an introductory meeting with one of our commercial solicitors.
