Unlocking Innovation Value: Why IP Strategy Matters More Than Ever for North West Businesses

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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