Data from the Office for National Statistics (ONS) shows the telecommunications sector has become the fastest-growing R&D investor in the UK as businesses largely set aside Brexit concerns.
Telecoms companies increased their research and development expenditure last year by £192 million, bringing total telecoms R&D spending to £947 million.
R&D spending in the sector rose by 25.4 percent, reaching a four-year high. However, analysis by R&D tax relief specialist Catax indicates that this level remains below the peak of £1.5 billion recorded in 2007.
Mark Tighe, chief executive of R&D tax relief specialist Catax, commented:
“The telecoms industry is strategically important to the UK, and it is encouraging to see such strong growth in investment.
There is still progress to be made before investment returns to pre-financial-crash levels, and it is crucial that it does if the UK is to remain a major global technology player.”
Despite ongoing concerns about Brexit, UK businesses have continued to outperform expectations with rising R&D expenditure and record employment in research roles.
“More broadly, this marks the second full year in which the UK has largely absorbed the political fallout following the EU referendum and delivered significant gains in R&D investment, well above the long-term average.
For the first time, more than 250,000 people are engaged full time in activities that keep the UK at the technological frontier. That will have a substantial impact on Britain’s prospects outside the EU.”
Across all industries, UK businesses increased R&D investment last year by £1.4 billion to reach £25 billion, up 5.8 percent. Pharmaceuticals remain the largest single product group, investing £4.5 billion in R&D (up 3.3 percent).
Other product groups with total R&D expenditure of £1.0 billion or more included:
- Computer programming and information services activities (excluding software development) – £1.9 billion (7.8% of total R&D expenditure)
- Aerospace – £1.7 billion (6.8%)
- Miscellaneous business activities; technical testing and analysis – £1.7 billion (6.8%)
- Software development – £1.5 billion (6.1%)
- Research and development services – £1.3 billion (5.1%)
- Machinery and equipment – £1.0 billion (4.1%)
Employment in R&D roles also rose significantly, increasing 7.3 percent year on year to surpass 250,000 full-time equivalents for the first time.
Interested in hearing industry leaders discuss topics like these and sharing real-world use cases? Attend the co-located IoT Tech Expo, Blockchain Expo, AI & Big Data Expo, Cyber Security & Cloud Expo and 5G Expo World Series at upcoming events in Silicon Valley, London and Amsterdam to explore the future of enterprise technology.