New data reveals the UK is one of the largest spenders in R&D, with expenditure totalling £61.8bn
To reveal how much the UK spends on research and development, the money.co.uk business loans experts have analysed the latest ONS data to find out.
How much the UK spends on research and development:
| Expenditure on R&D | |||||
| Rank | Sector | 2018 | 2019 | 2020 | Difference |
| 1 | Business Enterprise | £41.0bn | £42.2bn | £44.0bn | 7% |
| 2 | Higher Education | £14.0bn | £14.0bn | £13.9bn | -1% |
| 3 | Government | £1.5bn | £1.5bn | £1.7bn | 16% |
| 4 | UK Research & Innovation | £1.1bn | £1.1bn | £1.4bn | 22% |
| 5 | Private Non Profit | £782m | £822m | £828m | 6% |
| Total | £58.4bn | £59.7bn | £61.8bn | 6% |
- Overall, the total expenditure on R&D in the UK grew from £58.4 billion in 2018 to £59.7bn in 2019, reaching £61.8bn in 2020. The continuous growth over the years shows a steady commitment to R&D across sectors, despite varying levels of investment from each industry.
- The business enterprise sector dominates R&D spending. In 2018, the sector spent £41.0bn, which grew incrementally to £42.2bn in 2019, reaching £44.0bn in 2020.
- The private non-profit sector had the lowest spending. In 2018, the industry spent £782m, which grew to £822m in 2019, and slightly increased again to £828m in 2020.
The top 10 most innovative countries:
| Rank | Country | Business enterprise R&D expenditure |
| 1 | United States | $508.4bn |
| 2 | China | $446.9bn |
| 3 | Japan | $136.9bn |
| 4 | Germany | $101.0bn |
| 5 | South Korea | $89.3bn |
| 6 | Taiwan | $39.6bn |
| 7 | United Kingdom | $37.7bn |
| 8 | Italy | $24.5bn |
| 9 | Canada | $17.4bn |
| 10 | Israel | $16.7bn |
- The UK is 7th most innovative country and largest spender in R&D, investing $37.7bn. Over the past few years, UK businesses have notably ramped up their research and development investments, marking a significant shift towards fostering industry innovation.
- The United States ranked as the highest spender in R&D with an expenditure of $508.4bn. This reflects the US’s position as a global hub for technological innovation and its commitment to fostering scientific advancements and business growth.
- China came in second place with an R&D expenditure of $446.9bn in 2020, demonstrating the rapid growth of its tech sector and its aim to become a leader in the global innovation landscape.
Further findings:
- The professional, scientific and technical activities industry had the highest R&D expenditure, £12bn, increasing 43% from 2018 to 2021.
- Northern Ireland experienced a 32.9% increase in R&D spending from 2018 to 2021, more than any other region.
- The East of England, London, and the South East region had the highest level of R&D, £24.4bn.
