New product development to drive emerging market exports

TSB300UK manufacturers are concentrating their efforts on new poduct development as a weapon to break into emerging markets in the next three years.

According to a new Innovation Monitor survey from EEF, the manufacturers’ organisation and NatWest Bank, the sector is now looking beyond its recovery-driven need to focus on cost cutting to meet the needs of existing customers towards increasingly ambitious innovation strategies. More than 70% are planning to move into new markets on the strength of innovation in products and services – a jump from 54% in the past three years.

EEF Director of Policy Steve Radley said: “After a long and slow recovery manufacturers are looking to drive growth through innovation, developing new products and services for new markets. However, the demands of selling into new markets have increased the ‘need for speed’ when it comes to innovation, something that remains a key challenge for manufacturers. Encouragingly, government schemes are well-targeted to help manufacturers, but in order to deliver the stability companies need, there must be a longer-term commitment to innovation funding.”

The survey comes in the wake of official data that showed a 49% increase in the uptake of the R&D Tax Credits by SMEs between 2008/9 and 2001/12.

However, EEF points out that, the survey also highlights that at 1.1% of GDP Business Expenditure on R&D (BERD) in the UK remains low by international standards.

The survey’s key findings include:

–        71% of companies plan innovation to export to new markets in the next three years

–        73% of companies plan to bring new products to market in the next three years

–        75% of companies say speed to market is more important than it was in the past, but speed of innovation remains a top concern

–        Two thirds of companies collaborate with a research institution

–        Half of companies collaborate on research with organisations overseas

–        European research funding a positive benefit for UK companies

This material is protected by copyright Ken Hurst 2013.

Advertisements

About Ken Hurst

Ken Hurst began his career as a journalist in London over 30 years ago, working on a range of publications before moving on to weekly newspaper production in the newly-independent Zambia of the 1970s. He returned to the UK where his work included spells on newspapers and magazines, before moving to head up Norwich Union’s corporate affairs division. In the 1990s he moved on to freelance, co-own and publish the B2B audio magazine Sound and front the BBC radio Yesterday’s Papers programme. There followed six years as Business Editor at Britain’s biggest selling regional daily newspaper, The Eastern Daily Press, where he led an award-winning team and for whom he still writes a weekly socio/political comment column. Subsequently, he was Group Editorial Director at CBM, responsible for its UK and US magazine output – including The Manufacturer magazine – research-driven industry reports and live events content. Currently he is Contributing Editor at Works Management magazine publisher Findlay Media and Chairman of the consumer publishing house TNT Multimedia Ltd. He is a Fellow of the Royal Society of Arts and of the British Association of Communicators in Business.
This entry was posted in Government/statistics, Innovation, Manufacturing management, R&D and tagged , , . Bookmark the permalink.

One Response to New product development to drive emerging market exports

  1. ian toner says:

    these type of surveys are welcomed as it helps people in improvement of their business…

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s