Small businesses need to insulate themselves against any future economic downturn not by closing in on themselves, but by upping their commitment to research and development.

Only by coming up with better products and new applications for technology can British businesses prevent the predicted recession from occurring, warned Sir James Dyson.

Speaking on Sky News the famed entrepreneur – who invented the bagless vacuum cleaner that bears his name – stressed: "You've got to produce a better product, you've got to develop new technology and keep ahead.

"People won't start to buy cheap things, they will be looking for better value and better technology."

The government looks to be getting behind small business innovation as well, with the new "Innovation Nation" white paper promising reforms of the small business research initiatve (SBRI), so that each government department will set aside a part of its research budget exclusively for partnerships with small firms.


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