The UK Intellectual Property Office’s (UKIPO) recent Innovation and Growth Report 2025/26 gives a clear signal that patent activity in the UK is strengthening. While the report covers the wider intellectual property system, its patent-related findings are particularly relevant for innovative businesses, advisors, investors and companies considering how best to protect and commercialise R&D. They may also have a knock-on effect on future use of the UK Patent Box regime.
UK patent applications increase by 31%
The headline figure is striking. UK patent applications rose to 25,144 in 2025/26, an increase of 31.0% and the highest level for more than a decade. This ends a long trend of steady decline since the noughties. The UKIPO says growth was driven primarily by UK filings, suggesting stronger domestic demand for formal protection of innovation. For businesses, this points to renewed confidence in using the UK patent system as part of a commercial strategy. Over time, this could widen the pool of companies eligible to consider Patent Box, which can reduce the effective corporation tax rate on qualifying profits from patented inventions.
Is the launch of One IPO lowering the barrier to entry?
A second key takeaway is operational. During the year, the UKIPO prepared for the launch of the One IPO patents service, which went live on 1 April 2026. The aim is to simplify how businesses secure and manage UK IP rights through a single authenticated account. For applicants, a smoother digital service was intended to reduce friction in filing, managing and monitoring rights. Although its early days, these changes may be lowering the barrier to entry for SMEs, which could in turn increase future Patent Box participation once patents are granted and qualifying profits arise.
SMEs accessing the IP Audit scheme
For SMEs, the message is broader than just filing numbers. The UKIPO supported more than 340 SMEs through the IP Audit scheme, giving funded access to professional advice. The IP Audit scheme encourages earlier conversations about how patent ownership, R&D activity, licensing models and commercialisation plans interact together to influence business strategy.
The impact of AI on the UK patents system
The report also shows the UKIPO continuing to examine policy issues that may affect the future patent landscape. In particular, the UKIPO continues to assess the impact of AI-assisted inventions on the patents system to maintain legal certainty for innovators using AI in R&D. This remains an important area to watch. As AI becomes more embedded in research workflows, companies will need clearer rules on inventorship, patentability and ownership of AI-assisted outputs.
It may also be that recent Supreme Court judgements such as the Emotional Perception AI decision may have had an impact on the number of software/AI innovations filed at the UKIPO.
How the UK ranks against international IP jurisdictions
Internationally, the UK reinforces it’s positioning as a strong IP jurisdiction. The UK ranked second in the U.S. Chamber of Commerce’s 2026 International IP Index and sixth in WIPO’s Global Innovation Index 2025. For businesses, these rankings support the view that the UK remains a credible jurisdiction for innovation, investment and commercialisation.
What does this mean for innovative UK businesses?
The practical takeaway is that patents are becoming more prominent in the UK innovation economy. Rising application numbers suggest more businesses are seeking formal protection. Digital service reforms may make the system easier to use. Better patent data should support more informed commercial decisions.
For companies investing in R&D, the report is a useful prompt to review whether patent strategy is keeping pace with innovation activity. That includes checking whether inventions are being identified early, whether filing decisions are aligned with commercial markets, whether patent ownership and licensing arrangements are robust, and whether future qualifying profits can be tracked clearly. Businesses should not assume that having a patent automatically produces a Patent Box benefit, but stronger patent activity today may create more opportunities for Patent Box claims in future accounting periods.
