Fast-growing companies 'spend more on R&D'

News Article - 27 November 2006
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Companies which experience fast growth have been found to spend 50 per cent more on research and development (R&D) than other businesses, a survey has shown.

Research by auditor KPMG found that the figure equates to an increase of two per cent in fast-growing companies' turnovers to 6.1 per cent, Accountancy Magazine reports.

Over the last two years, 53 per cent of the companies with fast growth introduced new processes at work compared with 42 per cent of other businesses.

Steve Hollis, KPMG's head of markets in the Europe, the Middle East and Africa region, told the publication: "It's useful for those companies that aren't experiencing high growth levels to have such a clear pointer that an unshakeable commitment to innovation should be at the heart of their business strategy to help deliver a growth step change."

The research also highlighted that more fast-growing companies introduced new products during the last couple of years compared with the number across the board which was almost ten per cent less.

Richard Lambert, chief of the Confederation of British Industry, recently told the Guardian that R&D tax credits were important for both small and large companies.

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