What’s the secret to unlocking innovation in your business?

By Christopher Brown , Associate Professor in Enterprise and Entrepreneurship at 英国赫特福德大学 .

“Innovation is the key to growth” – this is a familiar mantra for any business owner. Yet for SMEs there are numerous challenges associated with unlocking innovation. Investing time and money into a bold new product or service could signal the end of a business if it fails. Consequently, there is often risk aversion among small business owners, who are also carrying multiple responsibilities and may feel they lack the capacity to bring innovation to life.?

?This is not just an SME problem - it’s a national one. In 2018, the last year for which official data is available, the UK invested slightly over 1.7% of Gross Domestic Product (GDP) in R&D while the Organisation for Economic Co-operation and Development (OCED) average was 2.4%. The Government have set a target for the UK to commit 2.7% of its GDP to R&D by 2027, and for innovation to be ‘unleashed’ across the UK.??

?SMEs will be the driving force behind this as they represent 98% of the total UK private sector business population, but where do you start? Here are some areas of consideration for SMEs which can help pave the way for long term success:?

1) Develop your innovation strategy

You may already have an innovation strategy, or you could be starting from scratch. Either way the basic approach should see you committing to a set of plans, policies, and behaviours to help you achieve a specific competitive goal, ensuring everyone is moving in the same direction. You should assess core capabilities, determine gaps, and pick one or two areas of focus rather than trying to do everything at once.??

2) Don't neglect digital transformation

The scope of digital transformation will vary from business to business, but if done well, it should simplify and consolidate routine processes and operations, improving efficiency and helping drive cultural transformation. Consider your technology needs both now and in the future and make plans to invest at the right time.?

?3) Partner up for R&D

?R&D is costly and time consuming.? It may require specialist facilities and equipment, skills and abilities that the business doesn’t currently have. There are private consultancies which can help, but this comes at a price and can be a slow process.? Partnering with a University offers a compelling solution; cutting edge equipment and facilities, and you can tap into some of the brightest academic minds with great agility, sharing knowledge, skills and expertise with your business. There are many routes and funding opportunities available. Find out more about how the University of Hertfordshire can help.?

4) Empower your team

Innovation can come from anywhere and you have to create space and time for it. Employees must feel encouraged to challenge, take risks, and embrace setbacks. Creating a healthy innovation environment has to be led from the top down, with continual reiteration that it is ok to test, and to be disruptive. Setting out time for brainstorming, or allowing multi-disciplinary teams to work on key projects unconstrained by normal routines also really help.?

5) Consider management training

This recommendation might seem less obvious than the others, but a business leader’s mindset, and the strength of their management practice is key to a firm’s propensity to innovate, according to research. Programmes like Help to Grow: Management are making a real impact in this area. A 2019 pilot scheme found that 84% of the 12,000 manufacturing SMEs taking part reported increases in their productivity, 60% were more able to participate in digital supply chains, and 25% reported export benefits. All of this happened because those firms became more innovative, and this was because their leadership underwent management training.???

Help to Grow: Management is 90% funded by the government, delivered as a fast-track learning experience over 12 weeks, and it will elevate the confidence and capability of any SME leader, maximising their potential and simultaneously removing the key barriers to innovation that may have existed before.?