The UK’s mid-sized business (MSB) market is set to drive innovation in 2015, a report predicts.

This forecast, from business and financial advisor Grant Thornton UK LLP, predicts that over the next year, nearly a quarter (23 per cent) of UK MSBs are expected to increase their investment in R&D, notes Further, SMEs will continue to drive the R&D agenda in the year ahead, being the largest investor in new technologies.

The Agents of Growth report shows that, in 2014, MSB expenditure on R&D grew by 2.7 per cent. This is marginally ahead of the 2.4 per cent growth reported by their larger and smaller counterparts, reports

MSBs in the UK can also look forward to faster growth in turnover (6.7 per cent), exports (4.5 per cent), capital investment (2.8 per cent) and employment (2.7 per cent), the report suggests.

Dominic Preston, head of innovation at Grant Thornton UK LLP, said: “Innovation lies at the heart of leadership and the UK has for generations been looked at as a leader in developing new technologies, processes and ways of thinking. It now risks losing this significantly invaluable trait to other economies which are proactively offering their business communities more support and encouragement to invest in R&D.”