R&D expenditures by UK businesses declined 2% in 2012 in current prices to £17.1 billion ($27.1 billion). In constant prices, they declined 4%. Total civil R&D expenditures, which excludes defense R&D spending, declined 1% to make up 91% of total UK business R&D spending. Pharmaceutical R&D showed the largest decline, falling 15% in current prices, to represent 25% of total business R&D spending. R&D spending by motor vehicles and parts businesses showed the largest increase, jumping 14% to make up 10%. By source of R&D funding, businesses’ own funds accounted for 66%; overseas funding, including European Commission funding, accounted for 24%; and government accounted for 8%. Overseas funding grew 2% in 2012, but businesses’ own funding and government funding declined 0.1% and 10%, respectively. Seventy-three percent of R&D was conducted by UK-owned businesses and 27% was conducted by foreign-owned businesses. Using the Standard Industrial Classification, scientific R&D fell 20% to £4.6 billion to make up 27% of the R&D performed by UK businesses. UK businesses’ number of full-time equivalent R&D employee was flat at 160,000, with scientists and engineers accounting for 56%.

Source: Office for National Statistics