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      • Queen Elizabeth Prize for Engineering
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  • Investing in R&D

Investing in R&D

Advice on how investment in R&D, especially by businesses, could be increased and explore the levels of government investment in R&D.

Policy publications

Access Academy policy reports and documentation in our library.

Policy publications

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

Business Perspectives

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?

Increasing R&D investment: business perspectives

Late-stage R&D: Business perspective

What prevents late-stage R&D to take place in the UK? What are the barriers and what can be done?

Late-Stage R&D: Business perspective

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.  

14.8 billion

R&D investment 2021/22

20 billion

2024/25

22 billion

by 2026/27

 

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.

Download R&D explainer

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.

Download review

National Engineering Policy Centre

See more Policy publications

Strategic advantage through science and technology

Science and technology being harnessed purposefully to achieve defined outcomes for security, prosperity, resilience, i…

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