The document summarizes six key findings from a study on R&D inputs into the UK's innovation system. The findings are: (1) total R&D expenditure in the UK has fallen relative to GDP since the 1990s, (2) business R&D spending is low compared to other countries, (3) the largest 10 and 50 R&D spending businesses account for a large portion of total UK R&D, (4) small and medium businesses account for a small percentage of R&D spending and funding, (5) overseas R&D investment in the UK is high but growing more slowly in recent years, and (6) since the financial crisis, UK competitors increased higher education R&D spending

1. The UK R&D Landscape
CIHE-UK~IRC
Enhancing Value Task Force
Alan Hughes and Andrea Mina
Six Key Findings
Introduction
The following six key findings are taken from a major study of
R&D inputs into the UK’s innovation system, which is the first
of a series of linked reports on enhancing the value of the
UK’s research base, and in particular its university-business
collaborations.
It will be followed by others focusing on the output and
efficiency of these investments and ‘deep dives’ into four
sectors – pharmaceuticals, energy, construction and the
converged creative, digital and IT (CDIT) sector.
Key Finding 1
There has been an overall fall of
total gross expenditure on R&D
in the UK (GERD) relative to GDP
from the early 1990s to date.
Key Finding 2
The business enterprise component
of R&D expenditure in the UK is
low by international standards -
even after adjusting for structural
difference between countries.
Key Finding 3
The largest 10 business R&D
spenders accounted for 34% of
all UK R&D in 2009; the largest
50 spenders accounted for 56%.
Key Finding 4
The many thousands of independent
small and medium sized businesses
employing fewer than 250 people
accounted for only around 3.5% of
the total R&D spend, and the UK has
the lowest share of total government
financed support for business R&D
going to small and medium sized firms.
Key Finding 5
Overseas investment in UK R&D is very
high by international standards. It grew
rapidly in the 1990s. That momentum has
not been maintained in recent years and at
the same time UK businesses have been
funding an increasing proportion of their
R&D outside the country.
Key Finding 6
Since the global financial crisis began,
the UK’s principal competitors have
increased their investment into Higher
Education Research and Development
(HERD) at a faster rate than the UK.
• For the full report go to:
www.cihe.co.uk/enhancing-value-task-force/
• To contact the report authors:
a.hughes@cbr.cam.ac.uk or
a.mina@cbr.cam.ac.uk
• To contact the Task Force Coordinator:
sally@cihe.co.uk
Task Force Chairs: David Eyton, Group Head of Technology, BP
and Prof. Shirley Pearce, Vice Chancellor, Loughborough University
Financial support from: