The number of deals struck between large organisations and SMEs in the UK dropped 28 per cent in 2016/7, after a three-year upward trend in collaborative investment.

But despite the recent fall, large organisations still invested £21billion in 1,111 deals with UK SMEs in the last tax year, according to data from national law firm Bond Dickinson

This was 31 per cent more than the £16billion large organisations invested in UK R&D in 2016, showing a healthy appetite remains for partnering with SMEs.

Jonathan Blair, managing partner, said: "Collaboration with SMEs has become a key strategy for delivering corporate innovation. Business leaders know that neither corporates nor SMEs are perfectly built to deliver innovation alone, but the reach and power of one, combined with the agility of the other can be a potent combination.

"With the economic uncertainty in both the UK and Europe the short-term hiatus in deals is understandable, but innovation continues to be a key priority for businesses facing disruption from all corners.

"On the brink of a major shift in its international trade relationships the UK has much to gain from these dynamic partnerships between PLCs and start-ups."

Picture: Pixabay