In 2015, R&D expenditure in the UK increased 3.9% to £31.6 billion ($38.5 billion), with the majority of the growth driven by spending in the business sector, for which it grew 5.6% to £20.9 billion. Total R&D expenditure, which includes investments from the business, higher education, government and private nonprofit sectors, as a percentage of GDP increased marginally to 1.68%, but exceeded 2014 R&D expenditure by £1.0 billion in constant prices excluding inflation.

The business sector accounted for 66% of total R&D expenditure, with pharmaceuticals R&D comprising £4.2 billion, and machinery and equipment comprising £1.0 billion. Higher education had expenditures totaling £8.0 billion, accounting for 25% of total R&D expenditure, a 2.6% increase. Although private nonprofit organizations make up the smallest portion of R&D performance in the UK, comprising 2% of total R&D expenditure, the sector itself had the greatest increase in R&D expenditure in 2015. Total R&D expenditure in this sector was £0.6 billion, a 15% increase from 2014. Government spending, the only sector to decrease R&D expenditure in 2015, fell 4.5% to £2.1 billion, accounting for 7% of total R&D expenditure. Overseas funding represented £5.4 billion.

Source: Office for National Statistics