Investing in R&D is investing in the future. R&D and innovation underpins our industries, creates new jobs and provides solutions to improve our health, wealth, security and environment.
What we do
The IAPA team regularly advices government and the civil service on matters relating to research, development, and innovation funding. We convene the whole-Academy responses and contributions to financial events such as government budgets and other fiscal statements. We also liaise with its equivalents in the other National Academies to agree of areas of shared policy regarding how the UK should best fund R&D and Innovation
The people at the centre of businesses’ decisions around R&D are chief technology officers, chief engineers, and in some businesses, chief executives. They are the ones that make the case for R&D within the business and direct it, including where it is done and how it is used to drive business success. Our business perspectives series explores how and why businesses make R&D investment decisions, and which aspects of the current UK environment encourage or discourage further R&D and innovation.
Increasing investment in R&D: Business perspectives
Which aspects of the current UK environment encourage or discourage further R&D and innovation according to business decision makers?
How much is invested currently?
The most recent update from government, announced at Autumn Statement 2022, is that we’re close to meeting the target of 2.4% of GDP invested in R&D. This is in part due to methodological improvements to how the national statistics are compiled. The Chancellor also confirmed an increase in public funding for R&D to £20 billion by 2024/25.
R&D investment 2021/22
The UK government sets targets for R&D investment and reports on its performance through a range of national statistics. We track these targets and statistics, and present them in an easy to understand format in our explainer
Where are we now?
- The Government has committed to investing £22 billion in R&D by 2026-27 as part of a target of 2.4% of GDP by 2027, and 3% in the longer-term.
- The UK National Academies produced a report on the current R&D investment and explains the importance of the 3% target for the UK and what can influence its delivery.
Related content: The Dowling Review
A review examining how government can support the development of more effective collaborations between businesses and university researchers in the UK.