Spending on Research and Development (R&D) by leading UK firms rose by 6 per cent in 2007 - reaching £21.6 billion - according to figures published today by the Department for Innovation, Universities and Skills (DIUS)
26 January 2009
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 per cent over the previous year whereas their global peers averaged a 9.5 per cent increase.
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".
Key findings from this year's Scoreboard include:
- The pharmaceuticals & biotechnology sector remained the largest investor overall in R&D in the UK, up 7 per cent over the previous year;
- Pharmaceuticals & biotechnology companies 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 per cent to £274 billion. It continues to be dominated by companies registered in just five countries - the USA, Japan, Germany, France and the UK - which contributed 79 per cent of R&D by the G1400.
R&D is an important element in many companies' financial success, driving not just high-value products and services but also playing a role in improving firms' own operations.
The headline 6 per cent rise in R&D undertaken by UK companies was largely due to increased spending by firms in the pharmaceuticals, oil and gas production, software and computer services, and banking sectors.
Notes to Editors
- The 2008 R&D Scoreboard draws on data taken from the published accounts of UK-based and global companies. It uses the latest accounts as of 28th July 2008, and refers to business activity largely in 2007.
- The R&D Scoreboard is produced annually by the Department for Innovation, Universities and Skills (DIUS), in conjunction with the Department for Business, Enterprise and Regulatory Reform (BERR). Scoreboards up until 2006 were previously produced annually by the former Department of Trade and Industry.
- The R&D Scoreboard is an international league table of R&D active companies. Designed primarily as a benchmarking tool for use by companies, investors and policy makers. It is endorsed by 16 leading business and technical organisations including the CBI, EEF, IoD and Royal Society.
- The Scoreboard contains details of the R&D and Capex investments, sales, profits, employees, growth rates, market capitalisation and key ratios for the top 1400 international companies (R&D over £18.5 million) and the top 850 UK R&D-active companies (R&D over £0.48m). All data is extracted directly from company annual reports. Each company is classified by ICB sectors (the ones used by the FTSE and Dow Jones) and key ratios are calculated for each company and sector. The Scoreboard covers company-funded R&D only. It does not include publicly funded R&D.
- The full 2008 R&D Scoreboard data set plus the analysis and commentary are available from the R&D Scoreboard website at: http://www.innovation.gov.uk/rd_scoreboard. The data can also be accessed from the above page by choosing the option to download the data as a CSV file, which can be opened in a spreadsheet program (e.g. Lotus 123 or Microsoft Excel). Printed copies of the R&D Scoreboard are available free of charge from the DIUS publications orderline via e-mail from orders@dius.ecgroup.net or by calling 0845 602 8032.
- The Scoreboard has been compiled by PricewaterhouseCoopers LLP, one of the UK's largest professional services firms.
- For media enquiries only contact Matt Barker in the DIUS press office on 0203 300 8126 or Chloe Joint at Porter Novelli on 01295 224573 or chloe.joint@porternovelli.co.uk
