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1、ProvidingMainrecommendation:support—ThecurrentHMTreasuryreviewofR&DTaxCreditsshouldconsiderandincentivechanges(listedbelow)toincreaseitseffectonsmallerbusinesses.Furtherrecommendation:—Theprofileofcreativityanddesigninbusiness-supportactivitiesshouldbera
2、ised.IntermsofthegeneraleconomicandregulatoryclimateinwhichSMEsoperate,governmenthasamajorroletoplay;considerationsofcreativitycannotbedivorcedfromotherconsiderationsinbringingaboutamoreenterprisingcultureintheUK.‘…ConsiderationsIntermsofdirectactiontost
3、imulateorsupportgreatercreativityandinnovationofcreativitycannotwithinSMEs,governmentisinamoredifficultposition,bothbecauseofthebedivorcedfromlimitationsofinternationalagreementsinareasliketax,andbecauseofotherconsiderationsthedisinclinationofcompaniesto
4、listen.Companiesgenerally,andsmallerinbringingaboutbusinessesinparticular,donotnormallyturntogovernmentforguidanceonamoreenterprisingwhattheyshouldbedoing.AsurveybytheFederationofSmallBusinessescultureintheUK…’(FSB)indicatedthatfewerthan23percenthadused,
5、orintendedtouse,anyformofgovernmentsupport.Nonetheless,therearesomeareaswhereusefulthingsarebeingdoneandIbelievethatthesecouldbemademoreeffective–specifically,raisingtheprofileofcreativityanddesigninbusiness-supportactivities,andprovidingincentivesforUKc
6、ompaniestoundertakemoreR&DandformultinationalcompaniestodoresearchintheUK.Raisetheprofileofcreativityanddesigninbusiness-supportactivitiesInthecourseofthisreview,Ihavelookedattherangeofexistingbusiness-supportschemes,fromdiagnosticsandadvice,togrants.Ibe
7、lievethatmorecouldbedonetoemphasisetheroleandmanagementofcreativityanddesignininnovation.TheHayGroupandFortune,andtheDTIEconomicsPaperbothgotolengthstoemphasisethatinnovationisn’tsomethingconfinedtoacompany’sR&Dunit.It’samindsetthatneedstopermeatethewhol
8、eofacompany’sactivities.Thisneedstobereflectedinthevarioussupportschemes.Asanoutcomeofthediscussions,severalprogrammeshavealreadyagreedtoraisetheprofileofcreativityanddesign.UKTrade&Investmentwillprovideinformation,awarene
