Question to the Department for Business, Energy and Industrial Strategy:

To ask the Secretary of State for Business, Innovation and Skills, what assessment he has made of the effect of the level of funding for research and development on productivity.

There is clear and robust evidence of a link between research and development (R&D) spending and national productivity. Research indicates that every £1 the UK government invests in R&D generates a return of 20p per annum in perpetuity^[1]. In addition that £1 of public expenditure leverages an average of £1.36 in private investment^[2], generating even greater returns for the UK.

This Government recognises the value of science and innovation as a driver of UK economic success. That is why we are protecting the science ring-fence in real terms during this Parliament at £4.7 billion per annum and investing a record £6.9 billion in science capital from 2015 to 2021.

[1] Haskel, Hughes and Bascavusoglu-Moreau (2014) “The Economic Significance of the UK Science Base” http://sciencecampaign.org.uk/UKScienceBase.pdf.

[2] Economic Insight (2014) “What is the relationship between public and private investment in science, research and innovation” https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/438763/bis-15-340-relationship-between-public-and-private-investment-in-R-D.pdf.