Research by ForrestBrown, the UK’s leading research and development (R&D) tax relief consultancy, shows that aerospace and defence (A&D) businesses are set to innovate their way out of the looming recession to fuel future growth.
It found that over half (59%) of A&D companies invested more than £500,000 in innovation in the last year with this showing no signs of slowing down despite the impending economic recession.
In fact, the survey revealed that 56% of A&D companies anticipate increasing their investment in innovation should a recession occur in the next year, rather than tightening the purse strings.
This echoes the strategy the sector adopted post-Brexit, when the survey shows that 48% of businesses increased their investment in R&D, responding to economic uncertainty by embracing innovative ways of thinking to explore new products and services.
Factors including the imperative to reduce the environmental impact of flying have made innovation an ongoing priority. This is reflected in the specialist personnel employed across the industry, with 30% of A&D companies having between 11 and 300 people on the payroll to drive their innovation strategy.
Sara Brigden, Managing Director at ForrestBrown said, “The UK’s aerospace and defence businesses have been at the forefront of innovation for a long time, consistently delivering game-changing technological advances.
“Despite the economic tides turning, it’s encouraging to see firms increasing investment in innovation to maintain this track record.”