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Research: Finance

Question for Department for Business, Energy and Industrial Strategy

UIN 130729, tabled on 16 December 2020

To ask the Secretary of State for Business, Energy and Industrial Strategy, pursuant to the Answer of 14 December 2020 to Question 124750 on Research: Finance, what the evidential basis is for the statement that £1 of public investment in R&D eventually leverages around £2 of additional private sector investment; and what the time period is of that evidence.

Answered on

11 January 2021

BEIS published “The relationship between public and private R&D funding” (BEIS Research Paper Number 2020/010) on 1 July 2020 at carried out by Oxford Economics Ltd

They estimated the monetary impact of the long-run leverage rate, suggesting that each £1 of public R&D eventually stimulates between £1.96 and £2.34 of private R&D

The study drew on OECD data for 41 countries from 1961 to 2017 with varying degrees of completeness