In 2013, business R&D spending in the UK was £18.4 billion ($28.8 billion), up 8%, to account for 1.1% of GDP. Civil and defense R&D expenditures were £16.7 billion and £1.7 billion, up 8% and 7%, respectively. Spending by foreign-owned business increased 11%, accounting for 54% of total R&D. Of the product groups selected by the top 400 companies in R&D performance as best describing their R&D activity, the three experiencing the largest percentage growth in 2013 were transport and storage; pulp, paper, and paper products; and printing. Overall, expenditures in the R&D services group grew the most, by 53%, to £929 million. Expenditures in the pharmaceutical product group were £4.1 billion, accounting for the largest percentage of total business R&D spending at 22%. According to the Standard Industrial Classification, businesses performing scientific R&D accounted for the highest percentage of total R&D at £4.9 billion or 26%. By region, the South East and East of England had the greatest R&D employment, with 45% of the total. Percentage of business R&D expenditures was highest in England at 91%. The regions with the greatest increases in business R&D were Wales and Scotland, up 37% and 13% to £369 million and £798 million, respectively. Financing of R&D came mostly from business, overseas and government, accounting for 67%, 21% and 9%, respectively.

Source: Office for National Statistics