Source: PwC press release 25 October 2016
UK companies invested £16.5 billion in research and development in the last fiscal year (ending June 2016), accounting for 4% of the global total (£446 billion) and ranking as the eighth highest investment by country.
The healthcare industry is leading the way in the UK, investing nearly half (48%) of total R&D spend.
Companies are shifting R&D spending away from physical products to software and services, with spending on software offerings increasing by 65% since 2015 (from £56 billion to £93 billion). Those who allocated more budget to software R&D reported significantly faster revenue growth.
Mark Couttie, Strategy& partner in London, commented:
“Innovation is an essential component of competitive advantage and UK business leaders clearly recognise the importance of R&D to their future success. Brexit has only made R&D investment more pertinent in the UK. It’s vital that companies continue investing and remain agile to exploit new opportunities. To do this they need to ensure they have the right talent in place, invest in ambitious innovation models, and employ a strategic approach to M&A to help build the capabilities they will need to thrive.”
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