Increase in R&D spending in 2008

Spending on research and development posted an annual increase of 3% in 2008 to £25.6 billion.

In 2008, expenditure on R&D was the equivalent of 1.79% of gross domestic product, a small increase on the previous year’s figure of 1.76%.

The sectors of the economy carrying out R&D in 2008 in cash terms were:

• business enterprise with £15.9 billion — an annual increase of 2%;

• higher education with £6.8 billion — a 4% increase;

• government where spending was £1.3 billion — up 4% on 2007;

• research councils spent £1.0 billion — up 1% on 2007; and

• the R&D spend of private non-profit organisations was £0.6 billion — an 8% increase on 2007.

In terms of source of funding, government departments, including Higher Education Funding Councils and research councils, funded a third (31%) of all R&D performed in the UK in 2008, the same as in 2007. Government also funded 29% of civil R&D and 47% of defence R&D.

Businesses funded 45% of all R&D, down marginally on the previous year.

www.statistics.gov.uk/pdfdir/gerd0310.pdf