Pharma, oil & gas drive UK research spending increase
26 Jan 2009
London - Spending on research and development by leading UK firms rose by 6% in 2007 - reaching £21.6 billion - according to new figures from the Department for Innovation, Universities and Skills (DIUS). The increase was largely due to increased spending by firms in the pharmaceuticals, oil and gas production, software and computer services, and banking sectors.
The annual R&D Scoreboard, published in collaboration with the Department for Business, Enterprise and Regulatory Reform (BERR), also shows that the UK's 88 biggest R&D investors grew their R&D by 10.3% over the previous year whereas their global peers averaged a 9.5% increase.
R&D investment by the UK850 increased by 7% over the last year; the fastest growing of the key sectors was oil & gas production, which increased its spending by 36%. The biggest contributors to growth in R&D amongst the UK850 were pharmaceuticals & biotechnology, oil & gas producers, banks and fixed line telecommunications.
During 2003-2007, the report noted continued, strong rises in pharmaceuticals and biotechnology R&D spending , while oil & gas producers also performed well. On the other hand, investment in R&D by firms in both the automobiles and parts and food production sectors has fallen in absolute terms over the five-year period.
The pharmaceuticals & biotechnology sector remained the largest investor overall in R&D in the UK, up 7 per cent over the previous year. Companies in these sectors also remained the biggest investors in R&D worldwide, having remained ahead of firms in the technology sector.
Global R&D spending by the 1,400 largest global investors (G1400) rose by 9.5% to £274 billion. It continues to be dominated by companies registered in just five countries - the US, Japan, Germany, France and the UK - which contributed 79 per cent of R&D by the G1400.
Science and innovation minister Lord Drayson said: "The pleasing growth in R&D investment by UK firms for 2007 was achieved in largely benign economic conditions before the impact of the global economic downturn. The future commercial success of UK companies and the wider UK economy requires continued investment in research and development."
