Research: Investment Returns
The question
To ask the Secretary of State for Science, Innovation and Technology, what assessment he has made of the adequacy of the rate of return to public investment in UK R&D.
Answered by Feryal Clark
Public R&D generates significant benefits for the UK, with each pound of public R&D investment estimated to leverage, on average, £2 of private R&D investment in the long run. We know businesses grow faster because of public R&D. In the 6 years after receiving their first R&D grant funding, employment increases in the average business by 21% and turnover grows by 23%.
The measurable returns of R&D projects will vary, depending on the specific area of research. Returns for closer-to-market research are generally less challenging to quantify than those for fundamental, curiosity-driven research. To ensure that public R&D investments continue to have high impact all new significant DSIT investments are assessed for their value for money and the Department evaluates programmes’ impact.
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