Global R&D tactics launching food and drink start-ups

A recent Policy Exchange report reviewing​ the gaps in UK food and drink security highlighted opportunities to improve sector investment as well as research and development.

While the country currently operates in a sophisticated and efficient manner, significant focus is needed on the agri-tech, robotics as well a need for changes to holistic innovation management across the sector, said the report.

What lessons could the UK and other European territories learn from government food and drink development and general R&D strategies around the world?

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Ireland

Ireland has long flexed its food and drink muscle, selling the virtues of the green and fertile land far and wide through its embassies and organisations like Bord Bia.

Over the last three decades, Ireland has moved from 800 active R&D organisations spending €300m to near 1,800 with a spend of over €3bn in 2022.

In 2021, the country boasted the highest proportion of business R&D and innovation in Europe.

Although, this was not organic growth. The Irish government has focused on developing R&D across MedTech, pharma and technology, with near €950m invested in such activities in 2020.

Businesses focusing on R&D are also eligible for a 25% tax credit on any qualifying expenses.

South Korea

A ministry dedicated to small and medium enterprises and start-ups, called the MSS, sells and facilitates a message of support and entrepreneurship to residents and those beyond the country.

The MSS has an eye on policy, tax and regulatory reform and identifies burdens and problems that negatively impact SMEs or emerging industries. It then helps to remove those barriers by working with the relevant government bodies and organisations.

A 50% corporation tax discount is also available to start-ups, while start-ups in special regions – outside major cities – can apply for a tax write-off.

Israel

Boasting the highest density of start-up to scale-up businesses per capita globally, Israel knows what it’s doing when it comes to encouraging innovation.

“To date, Israel has produced over 71 unicorns globally, of which 29 remain headquartered in Israel,” said the Policy Exchange report. “Israel’s ability to scale up innovation is the result of generous public provision of early funding, bridging the gap between R&D and the consumer market and a non-protectionist attitude to intellectual property rights from its universities.”

The country also offers financial investment and focuses on skills development as well as encouraging entrepreneurial talents to pursue their instincts to launch and grow new industries.

“Several higher education institutions in Israel focus heavily on innovation and technology, exposing students to VCs, entrepreneurs and business leaders,” the report said.

The Zell Entrepreneurship, for example, has for two decades nurtured near 140 companies, 84 of which are active and 22 have been sold or merged resulting in over €112m of value.

“Bridging the gap between R&D and consumer markets through early government investment allows companies in Israel to overcome the space between initial research and successful innovation,” said the report.

“Israel has a long history of investment in innovation and a strong vision focusing on areas of strength such as Agritech and health, with a well-established and well-recognised innovation ecosystem. Two examples of successful Israeli food manufacturing startups include Sufresca and Bluetree Technologies.”

Singapore

A supportive food ecosystem has been developed in Singapore through a focus on collaboration and sharing resources through the country’s FoodInnovate multi-agency initiative that aims to grow its food manufacturing sector through innovation.

The agency was established by Enterprise Singapore, the Agency for Science, Technology and Research, the Economic Development Board, IPI Singapore, JTC Corporation and Singapore Food Agency.

FoodInnovate was established to help food businesses in the country quickly develop and commercialise food products through advanced tech and the shared network of ideas and resources.

Testing of ideas are facilitated through the Food Innovation Resource Centre, meaning companies aren’t required to invest in expensive equipment themselves as access to tech including high pressure processing equipment and the likes of are available through the shared resource.

“A shared facility to rent equipment to test new food products in small batches is an example of available supporting infrastructure that has characterised innovation in Singapore,” said the Policy Exchange report.