In a new series, we explore the legal implications of growth. This follows the launch earlier this year of our in-depth report, Ambition 2025, which looks at the drivers for growth of North West businesses – their strategic objectives for the year, the challenges that lie ahead and the opportunities that exist in their quest for success. The report dives into a number of core areas that feature prominently in the growth ambitions of regional businesses. These include finance, people, innovation and sustainability.

In the third of four blogs, we focus on the key topic of innovation, speaking to partner, Sarah Bazaraa, and associate partner, Danielle Amor, about its importance and what businesses need to consider from a legal perspective when scaling up.

The importance of innovation

When it comes to technology and innovation, the North West is rapidly making a name for itself, particularly in Manchester where the digital economy is worth over £5 billion, employs more than 88,000 and is home to over 10,000 businesses. This has resulted in the thriving digital ecosystem being ranked as the UK’s ‘top digital tech city’ and Europe’s fastest-growing tech hubs.

But the impact of technology is not only being felt by those that create it. Its impact is being felt across a multitude of industries and professions. In fact, nearly a quarter of respondents (22%) of the Ambition 2025 survey ranked ‘innovation within their sector’ as one of the top three business priorities in 2025, with 24% of businesses looking at how AI can be adopted across their business – more than a third (38%) of North West businesses said the biggest impact of this was improving efficiencies.

The survey clearly shows the importance of innovation in helping businesses to achieve their growth ambitions.

“The world doesn’t stand still and things change all the time,” explains Sarah. “As such, businesses need to evolve and innovate in order to stay in the race, particularly in highly competitive markets and in an economic environment where business leaders are constantly being kept on their feet.”

The need to adapt and innovate is driven in part by a desire to create efficiencies and achieve more with less, while at the same time pushing boundaries through products and services that break new ground.

But, as a scaling business how do you know when the time in right to embrace innovation?

“Innovation and implementing change is something that businesses need to consider on a regular basis,” says Sarah. “But timing can also hugely depend on what’s happening in the wider world. The Covid pandemic is a prime example. It forced people to stop and reassess their position in the market.”

While that may have been an extreme event, it’s essential that businesses remain agile and adapt to what’s going on around them. However, it has to be for the right reasons, Danielle cautions.

“It’s about striking a balance,” she explains. “You don’t need to reinvent the wheel, just for the sake of it. If someone is doing something really well, take advantage of it. You need to play to your strengths and work out where your business can innovate and make a real impact. If you’re just replicating what other people are doing, but in a slightly different way, there’s a risk it may add significant cost to your business without the benefits.”

Cost clearly plays a big part in innovation, particularly for start-ups.

“Companies at an early stage in their growth journey simply don’t have the budgets to create bespoke solutions, particularly when there is so much out there that you can get off the shelf that will serve your business in the same way,” explains Danielle.

“Innovation can also be daunting to a lot of companies that feel they have to come up with a totally new idea in order to meet the brief,” adds Sarah. “The reality is you can still innovate by adapting what already exists to serve your business, your audience and your sector.”

The ability and open-mindedness to pivot is also a key component of innovation. “There are so many examples of brands that failed to adjust quickly enough to changing market conditions and consumer sentiment,” explains Sarah.

“Timing is everything,” Danielle comments. “Choosing the right time, as well accepting that the world is changing, is crucial.”

Key legal considerations

From an innovation and IP perspective, there are several key legal factors to consider when vying for growth. These include:

• IP ownership – Businesses need to think about where IP ownership sits, especially if you’re working with a third-party consultant, a design agency, or a software engineer who’s not employed by you. “A lot of businesses don’t realise that the IP will sit with that third party, so you need to make sure that your contracts make clear that any kind of content, creations, or inventions that are produced by a third party on your behalf are assigned to you so that you own that IP in the first place,” explains Sarah. “This is particularly important if you intend to seek investment in the future, or you want to sell your business, as prospective investors/buyers will want to see that you own what you say you own.”
• IP registrations – Once you own the IP, you may want to consider securing intellectual property registrations for any key products, designs, or inventions. “Businesses will own unregistered rights in certain innovations,” says Sarah. “But for some of your key lines, depending on what it is, you may want to think about securing a patent, or a registered design right, to add another layer of protection.”
• Confidentiality – By not keeping certain information confidential, you run the risk of losing your IP rights and, for example, your ability to safeguard the innovation in a trade secret or to secure a patent. “It’s also important to consider whether you need non-disclosure agreements, particularly if you’re going to be speaking to third party suppliers, potential investors, or you don’t understand the process of how to put an idea into the world,” explains Danielle. “An NDA makes sure that you’re not giving away your best ideas for somebody else to quickly launch it before you have the opportunity.”
• Data – this is a big consideration if you’re creating new technology that is using personal data. You must ensure this complies with GDPR and that you take appropriate steps to mitigate any risks. “Fines from the Information Commissioner’s Office can be significant and, as we know, data breaches can cause huge reputational damage, with M&S, the Co-op and JLR, three high-profile examples,” says Danielle. “It’s about making sure your systems are secure, your personal data is as secure as it can be, while recognising that the protection of personal data is actually critical in many cases to the entire operation of the business.”

Support and guidance

Given the complexities surrounding innovation, seeking professional and early advice is key. There are also a number of other resources available to guide you through the process, including the Intellectual Property Office. “The IPO has a really good website, with lots of information for early start-ups,” explains Danielle. “The ICO also has lots of information from a data perspective on compliance.”

“Innovate UK is another useful resource for start-ups to tap into and a good starting point for businesses looking to innovate.” Sarah concludes.

If you would like to speak to Sarah or Danielle in more detail about the role innovation plays in your growth strategy, you can contact them on sarah.bazaraa@pannonecorporate.com and danielle.amor@pannonecorporate.com

Nearly a quarter of North West businesses intend to adopt artificial intelligence (AI) in the next 12 months, according to new research.

As leaders from across data science and AI met at the fifth annual AI UK conference last month – hosted by the Alan Turing Institute – North West businesses have set out their intentions for adopting AI in 2025.

Law firm Pannone’s Ambition 2025 report found 24% of regional businesses have ranked AI as a top priority for 2025. More than a third of businesses (34%) stated that they want to push boundaries and set new standards in innovation in their sector over the next 12 months. Other priorities in the top 3 were wealth creation and expansion into international markets.

Unsurprisingly, 31% of North West businesses are investing in new technology and digital transformation this year, with a further third going beyond that and developing their own technology in-house. In addition, more than a quarter (27%) are currently working with incubators and regional hubs, such as Atom Valley.

Last month, pioneering experts from across the data science and AI ecosystem came together to discuss the latest developments being used to address some of today’s biggest challenges.

Danielle Amor, legal director in the commercial services team at Pannone, commented: “There’s no doubt that AI is developing at pace, with AI UK a perfect showcase of what’s on the horizon.

“The difficulty legislators currently face is how to ensure regulation keeps up with the speed of change. With the EU, the US and China taking wildly divergent approaches, the future direction of AI in the UK hangs in the balance. Businesses are clearly showing appetite for change, adopting new ways of working that incorporate AI, but there is also concern around what this could mean for the future jobs market and independent thought.

“The real drivers for businesses centre around improving efficiencies, reducing the administrative burden that hampers certain roles and utilising product development tools.”

Despite more than a third of businesses (35%) admitting that they think AI will replace jobs, at the same time companies are also using technology to drive training and development (34%), with the same number of businesses using it to enhance recruitment.

Amor added: “There’s still a huge amount of uncertainty over AI – not just in terms of how it’s regulated and what innovations will be developed, but also how SMEs can harness it in their day-to-day operations.

“For SMEs without the budget for in-house development of AI systems, the question is how best to embrace existing products to fast track their own ambitions and achieve growth, whilst remaining compliant with the existing regulatory regime and realising cost savings.”

The Ambition 2025 report can be found here. Through a combination of research and in-depth interviews, Ambition 2025 aims to understand the key drivers of growth, as well as the motivations, priorities and challenges for regional companies that make up the North West business community.

A survey of 200 regional businesses with a turnover of between £20 million and £300 million was also carried out in conjunction with the report.

The Financial Times once stated that the North West economy, led by the redevelopment of Manchester and Liverpool, is a genuine rival to ‘overheated London’. It’s a sentiment that’s hard to argue with.

Each distinct, but interconnecting sub region within the North West’s boundaries is brimming with industry – some traditional, some emerging to become sector leading. Whether it’s pharmaceutical, technology, automotive, retail, manufacturing, aerospace, utilities, chemical engineering, nuclear, or food manufacturing – not to mention the rich heritage in sport and culture, which contributes significantly to the regional economy – there is an abundance of talent and intent, combined with a strong identity and desire to put the North West on the global map.

While its chronically ‘wet and grey’ tag is well-known, the climate in the North West has never set the tone when it comes to the spirit and endeavour of the regional business community. “The business community remains close-knit, plain-speaking and has the energy and desire to make things happen, rather than waiting for others to do it for us,” explains Tom Hall, corporate partner at Pannone. “I don’t see that changing.”

In every corner of the North West there’s a fascinating story to tell about the businesses that contribute significantly to the wider UK economy; there are inspiring business leaders who are making their mark, not just on the region, but nationally and internationally; and there is a working population striving for change and good – all proud of the region, what is means and what it does.

It was these drivers that inspired our report Ambition 2025. We wanted to listen to those voices – hear their stories about growth and ambition, while understand the key motivations that will bring success over the course of the next 12 months. Through a combination of research and in-depth interviews, our aim was to paint a picture of the people and businesses that make up the North West business community and what aspirations they have for the future.

Survey highlights

As part of Ambition 2025, we conducted a survey of 200 North West businesses to understand the key drivers of growth. The research focused on five core areas: people, finance, impact, innovation and ambition. The results shine a spotlight on the motivations, priorities, and challenges for regional businesses, as they strive towards their goals in 2025. So, what does the survey tell us?

Legacy the ultimate ambition: Over 75% of respondents have selected at least one legacy building factor as their ultimate business objective. This compares to just 62% who selected at least one financial motivation.

External investment as a priority: Attracting external investment is the most important goal for businesses aiming to achieve their ambitions, surpassing even brand-building. This focus is especially strong among younger decision-makers (16-34 years old), where 56% identify external investment as key to their strategy.

Half of those aiming to sell their business to fund retirement also prioritise external investment as essential to achieving this goal.

Flexible work: The top people priority for businesses over the next 12 months is offering more flexible work options for employees. This focus on flexibility tops other people-related factors such as improving pay and recruitment. Arguably, it reflects a broader trend toward workplace cultural transformation.

Business leaders aged 45-54, however, prioritise investing in wellbeing and improving pay and rewards. This potentially highlights that people in these age groups are slightly more focused on more traditional, office-based perks compared to younger business leaders?

The role of AI: No businesses surveyed doubt AI’s potential impact, with the majority viewing it as a tool for enhancing efficiency and reducing administrative burden. This trend is particularly strong in HR and non-tech sectors, where AI is seen as a means to streamline operations.

In finance and retail sectors, AI is seen as an enabler for recruitment, training, and development.

Growing demand for funding: More than 80% of businesses in the North West, particularly in education (93%) and hospitality (92%), are actively seeking funding over the next 12 months. Angel investment and growth capital are the most favoured types of funding (21% each). Private Equity and Venture Capital are less attractive options (less than 6%).

M&A on the rise: M&A activity is a significant focus, with over three-quarters of businesses in the North West planning to explore opportunities within the next year. This trend is particularly prevalent in leisure (88%), with tech following closely behind (84%). Younger decision-makers appear less enthusiastic about M&A, with an even split between those who are considering it and those who are not.

Sustainability initiatives: Sustainability is on the radar of all businesses surveyed. The most common sustainability initiative is upgrading fleets to cleaner, greener options, reflecting a growing awareness of environmental impact across industries.

Generational differences: Throughout the survey, some clear generational differences emerged in terms of priorities and strategies. In particular, younger business leaders (16-34) are more focused on external investment, flexible working conditions, and growth, while those over 45 tend to prioritise wellbeing, pay improvements, and legacy creation.

Younger people are also more likely to prioritise external investment for meeting ambitions and be less likely to feel their business will embark on M&A in the next 12 months.

To complement our survey findings, we also interviewed 15 businesses based in the North West about what aspirations they have for the future, focusing on the same five core areas. Participants included: The Lowry, Direct Access Group, Serotonin, Duo UK, LOFT UK and One + All – businesses that are all passionate and driven by people who have a crystal vision, a real sense of purpose, and a desire to enact change – whether on a local, regional, national, or international scale.

What this insight has shown us is that the North West has a strong heritage of ambitious, entrepreneurial companies that are intent on growth. Despite the economic, social and geo-political challenges that exist in the market, there is clearly an appetite to seize opportunities and navigate the obstacles and barriers that lie ahead.

It’s certainly the attitude, approach and sense of identity that differentiates the North West and its component parts from other areas of the UK. It’s this personality that drives ambition and a core feature of our report.

“I came to the conclusion that the inhabitants here are of a different spirit which makes them want to enjoy life a little more.” Johann George Büsch, 1777

To read the Ambition 2025 report in more detail click here https://pannonecorporate.com/reports/