UK public R&D spending reducing the gap with global competitors

10th April 2025

New figures from the Office for National Statistics reveal that government spending on research and development increased by 1.9% in real terms between 2022 and 2023. This is a positive signal of the UK's long-term commitment to boosting public R&D expenditure, which is critical to driving long-term economic growth.

Rosalind Gill, Head of Policy and Engagement at NCUB, says: "Ongoing public investment in research and development is crucial for the UK's prosperity and advancement. The data released today highlights the continued efforts of successive governments to enhance the competitiveness of the UK's publicly-funded R&D, ensuring it drives national benefit and progress".

Gill continued: "The long-term growth in public R&D investment relative to other countries is an encouraging sign that the UK is strengthening its global competitiveness in public R&D spending, after years of underinvestment. From 2012 to 2023, UK public R&D spending increased by over 30% in real terms. In comparison, growth was slower in Canada (4%), the US (7%), and Japan (10%). Only South Korea outpaced the UK, with a 72% increase over the same period."

Gill concluded: “However, the UK cannot afford to be complacent. Despite progress, both public and private sector R&D investment continues to trail behind that of key global competitors, and sustained growth is crucial.

To preserve the UK's position as a leader in global R&D, the government must take decisive action in the upcoming Spending Review to continue to support innovation-driven growth.

The UK’s universities are recognised as amongst our strongest competitive advantages, and their financial sustainability and success must be ensured. Equally, we are seeing declines in private R&D investment in the UK, which needs to be tackled to propel innovation forward."

About the NCUB
The National Centre for Universities and Business (NCUB) represents a collective voice of leaders across higher education and business and aims to tackle issues of shared interest. The NCUB is an independent and not-for-profit membership organisation that promotes, develops and supports university-business collaboration across the UK. The organisation was originally established in 1986, and NCUB was formed in 2013.