R&D spending in the UK. Including analysis of R&D by region and industry, and international comparisons of R&D.Jump to full report >>
Research and development (R&D) is systematic work undertaken to increase the stock of knowledge.
In the UK in 2016, total expenditure on R&D was £33.1 billion, £505 per head, or the equivalent of 1.7% of GDP.
R&D investment has risen steadily over the past few decades, from £17.8 billion in 1981 to the current total of £33.1 billion (in 2016 prices). This is a real terms increase of 86%.
But as a proportion of GDP, R&D expenditure has fallen over this period (it was the equivalent of 2.0% of GDP in 1981).
The government have a target for R&D investment to reach 2.4% of GDP by 2027.
R&D performed by businesses accounted for 67% of all R&D expenditure in 2016 (£22.2 billion).
The higher education sector performed R&D worth £8.0 billion or 24% of the total.
The government sector (including the funding councils) performed £1.1 billion of R&D, 7% of the total.
R&D performed in the South East of England in 2016 totalled £6.7 billion, 20.1% of the total. R&D performed in the South East, the East of England and London accounted for 52.0% of all UK R&D.
Per head, R&D expenditure in the East of England is the highest: £924 per head. The figure for the whole UK is £505 per head. In Wales, per head R&D expenditure is £230.
The pharmaceuticals sector performs by far the most on R&D of any industry in the UK: £4.3 billion in 2017, compared to £3.6 billion in the automotive sector which is the second highest total.
These two sectors also employ the most people in R&D related roles of any industries: 24,000 in the pharmaceuticals sector and 21,000 in the automotive sector. In the whole of the UK, 231,000 people are employed in R&D related roles.
The UK figure for R&D investment of 1.7% of GDP is below the OECD average of 2.3%.
R&D expenditure in Germany is the equivalent of 2.9% of GDP, in the US it is 2.7% and in France it is 2.2%.