Figure 5 shows the pattern of change in the level of R&D investment over the last five year among the ten largest sectors in the UK850 defined by their investment in R&D
It highlights the continued, strong rises in pharmaceuticals and biotechnology and fixed line communications.
Oil and gas producers, software & computer services firms and banks have increased their investment in R&D over the five year horizon although the banks have not disclosed significant R&D investment throughout the period (e.g. banks). 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.
Growth in the UK fixed line communications sector was once again driven by BT. The banking sector was driven by strong performance across the board, in particular Barclays which increased its R&D spending by 151% over the four years and Alliance and Leicester which increased its R&D spending by 1107% over the same period.
Figure 5: Growth in R&D expenditure by sector across UK850 (2003-2007)
Figure 6 shows the growth in investment in R&D across the ten largest sectors in the G1400 over the last five years. The overall rate of increase in investment in R&D among the UK850 between 2003 and 2007 was 38% compared with 41% for the G1400. This is not a like for like comparison since the UK850 includes smaller firms and foreign subsidiaries, which are not present in the G1400. A better comparison is with the 88 UK firms in the G1400. These firms have increased their investment in R&D by 40% over the same period.
Figure 6: Growth in R&D expenditure by sector across G1400 (2003-2007)
Investment in R&D grew, on average, more quickly in the UK850 than in the G1400 across the following sectors: aerospace and defence, fixed line telecommunications, oil and gas producers and software & computer services sectors. In contrast, food producers, automobiles and parts, pharmaceuticals and biotechnology, technology and hardware equipment, banks and electronic and electrical equipment sectors increased their investment in R&D faster in the G1400 than the UK850.
