Accounting for innovation: A UK pilot for SMEs

This report takes a look at how the 'invisible gold of innovation' can be measured and accounted for. It builds upon the findings from our 2015 report Innovation, Intangibles and Integrated Reporting.

Innovation is fundamental to competitiveness and economic growth; it matters to firms of all sizes. Innovation not only leads to growth and competitive advantage, but it also underpins economic and social wellbeing. Yet return on innovation is extremely difficult to measure.

How should this invisible gold be measured? How should it be accounted for and how can firms leverage finance against intangible assets? Building on our 2015 report: Innovation, Intangibles and Integrated Reporting this new report seeks to answer some of these questions with a focus on the UK. 

As with our previous report we have worked in partnership with the Malaysian Innovation Agency, AIM, and Nesta to produce this new piece of insight. We are acutely aware of the role our members play in ensuring that businesses are aware of the true value of their assets, whether tangible or intangible. This work very much focuses on the future of our profession in an increasingly fast-moving digital world.