Increase in UK R and D Spend Revealed as R and D Scoreboard Published
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Issued on 01 March 2010
The top one thousand UK companies invested more than £26bn on developing new
products, services and improving productivity in 2008 according to the latest R&D
scoreboard published today.
The R&D Scoreboard is an annual investigation of the top 1,000 UK and top
1,000 global corporate investors in Research and Development (R&D).
Spend by the UK companies listed increased by 9.2 per cent in 2008 compared
with 2007.
The increase was largely due to firms in the pharmaceuticals and
biotechnology, aerospace and defence, software and computer services and banking
sectors, the report found.
Key facts from the latest R&D scoreboard include:
* 81% of UK R&D, carried out by the 1,000 top R&D investing
companies, was conducted by just one hundred of these companies, and is
dominated by the pharmaceuticals and biotechnology sector.
* Globally, the 1,000 companies most active in R&D invested £396 billion
in 2008, an increase of 7% on the previous year. The 46 UK companies in this
group increased their R&D spend at a faster rate (11.1%).
* 80% of investment in R&D by the global 1,000 companies occurs in five
countries: the US, Japan, Germany, France and the UK.
* Global R&D intensity (R&D expenditure as a proportion of sales)
stood at 3.4%. Among the UK’s 1,000 leading companies, R&D intensity stood
at only 1.6% and at 1.5% for the 46 UK companies listed in the Global 1000.
* Ranked by their value-added contribution, the top 50 UK R&D companies
contributed some £385 billion to the broader economies in which they operate.
Three fifths of this amount derived from just ten companies. With the exception
of the banks, all increased their value-added contributions compared with the
previous year.
The Scoreboard is a highly regarded business tool. Even though the current
data highlights spending on R&D in 2008 – before the worst of the global
economic downturn – it remains an important data source for tracking commercial
investment over time.
Science and Innovation Minister Lord Drayson said
“Since 2000, we've provided almost £3.9 billion to innovative companies
through R&D tax credits. The UK Innovation Investment fund is about to
invest £325 million in promising technology firms. From 2013, we're reducing
corporation tax on income from patents to 10 per cent. The Government's
commitment to support companies with high-growth potential is clear.”
Notes
1. This is the 19th annual edition of the R&D Scoreboard, which is
published by the Department for Business, Innovation & Skills (BIS). This
scoreboard and previous editions are available at www.bis.gov.uk/randscoreboard
.
2. The report summarises the 2008 company data on investment in R&D and
financial performance of the 1,000 UK companies that have invested most in R&D,
including foreign-owned companies whose R&D is conducted in the UK and
reported in the UK1000. To put the UK performance into perspective, it also
includes data on the 1,000 most R&D active companies globally (G1000) and
highlights the main trends in both the UK and global data.
3. The scoreboard also includes case studies illustrating companies in key
sectors.
4. Source data was collated by Company Reporting(Bespoke Databases) and the
commentary was written by the Economist Intelligence Unit.
Department for Business, Innovation & Skills
The Department for Business, Innovation and Skills (BIS) is building a
dynamic and competitive UK economy by: creating the conditions for business
success; promoting innovation, enterprise and science; and giving everyone the
skills and opportunities to succeed. To achieve this it will foster world-class
universities and promote an open global economy. BIS - Investing in our future.
About the Author
© Crown Copyright. Material taken from the Department for
Business, Innovation & Skills. Reproduced under the terms and conditions of the
Click-Use Licence.
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Article Published/Sorted/Amended on Scopulus 2010-03-03 23:55:10 in Economic Articles
