30 March 2011
A National Statistics Publication for Scotland
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Further information can be found on the Research and Development website.
GROSS EXPENDITURE ON RESEARCH AND DEVELOPMENT SCOTLAND 2009
This publication presents information on research and development (R&D) undertaken by the business, higher education and government sectors in Scotland in 2009 as well as revisions to previously published data for 2008 and 2007. The majority of the data presented in this release come from R&D surveys conducted by the Office for National Statistics (ONS).
GROSS EXPENDITURE ON RESEARCH AND DEVELOPMENT (GERD)
Expenditure and components of GERD
Gross Expenditure on R&D (GERD) comprises that undertaken by the business, higher education and government sectors. In 2009 Scottish GERD reached £1,920 million, 7.4% of the UK total. GERD has increased by £135 million since 2008 (this is a 5.8% increase in real terms). GERD was 1.67% of GDP in Scotland in 2009, compared to 1.84% in the UK and 1.92% in the EU.
Scottish GERD forms the basis of the National Indicator: At least halve the gap in total research and development spending compared with EU average by 2011. The gap between Scotland and the EU average, in terms of GERD as a percentage of GDP, decreased by 0.03 percentage points from 0.28 percentage points in 2008 to 0.25 percentage points in 2009 ( Table 1). The gap between Scotland and the EU is 0.09 percentage points lower than it was in 2006, which is the baseline year for the national target.
In 2009 the average GERD spend per head of population was £370 in Scotland compared to £419 per head of population in the UK ( Table 2). In comparison to the other eleven regions within the UK, Scotland ranks fifth in terms of GERD as a percentage of GDP in 2009 ( Table 3A).
Scotland's relative performance, regionally and internationally, differs considerably across the business, higher education and government sectors. The relatively low contribution of business R&D, alongside a high contribution of higher education R&D, is clear when comparing Scotland to other countries.
Business Enterprise Research and Development (BERD)
Business Enterprise Research and Development (BERD) expenditure stood at £644 million in 2009, 4.1% of the UK total and 0.56% of Scottish GDP. Expenditure increased from £557 million in the previous year (a 13.7% increase in real terms). In comparison to the other eleven regions within the UK, Scotland ranks tenth in terms of BERD expenditure as a percentage of GDP ( Table 3B). Scotland's BERD as a percentage of GDP ranks in the fourth quartile of OECD countries that reported in 2009.
Higher Education Research and Development (HERD)
In 2009, Higher Education R&D (HERD) was £984 million in Scotland, 13.6% of the UK total and 0.86% of GDP. This is an increase of £45 million since 2008 (a 3.1% increase in real terms). In comparison to the other eleven regions within the UK, Scotland ranks first in terms of HERD as a percentage of GDP ( Table 3C). Scotland's HERD as a percentage of GDP is third highest among the OECD countries that reported in 2009.
Government Expenditure on Research and Development (GovERD)
Government Expenditure on R&D stood at £292 million in 2009, 12.3% of the UK total and 0.25% of GDP. This is an increase of £3 million since 2008 (a 0.6% decrease in real terms). In comparison to the other eleven regions within the UK, Scotland ranks fourth in terms of government R&D expenditure as a percentage of GDP ( Table 3D). Scotland's GovERD as a percentage of GDP ranks in the second quartile of OECD countries that reported in 2009.
Further details on Government expenditure on research and development can be found in the Department for Business Innovation & Skills (BIS) publication SET Statistic - Science, engineering and technology indicators. This publication contains historic expenditure on research and development by the Scottish Government from the annual ONS Government Research and Development Survey.
These figures differ from the Scottish GovERD figures as the Scottish GovERD figures include all forms of Government research and development expenditure undertaken in Scotland and not just that undertaken by the Scottish Government.
Sampling and Regional Estimates
1. This release presents estimates of Gross Expenditure on Research and Development (GERD) in Scotland in 2009. The majority of the data presented in this release come from Research and Development (R&D) surveys conducted by the Office for National Statistics (ONS). The release includes the estimates for R&D in 2009 carried out by the following sectors of the economy in Scotland.
- Business Enterprise
- Higher Education
- Government, which includes Research Councils
2. GERD is the measure most commonly used for international comparisons. It covers all R&D performed in the country concerned, irrespective of who pays for it, including funding from abroad. However, it excludes R&D performed abroad even if it is funded from the UK. The components of GERD relate to R&D performed in four sectors of the economy:
- Business Enterprise Research and Development (BERD) is derived from the results of the ONS's annual business R&D survey. In 2009, approximately 5,000 questionnaires were sent to businesses in the UK known to perform R&D; this included around 400 of the largest R&D spenders. Smaller R&D performers and others believed to be performing R&D are sampled.
- Higher Education Research and Development (HERD) is estimated by the Higher Education Funding Councils for England, Scotland, Wales and the Department for Education in Northern Ireland.
- Government Expenditure on Research and Development (GovERD) is based on an annual survey of in-house R&D from most government departments, with the addition of ONS estimates for two other components: R&D performed by local authorities, and some R&D within central government not available from the survey.
- Private Non-Profit (PNP) sector. Due to a planned review of the methodology used for the compilation of the R&D spend by the PNP sector, estimates are currently based on a number of sources. These include the total reported as the GovERD 'other' spend by government, including Research Councils. The PNP sector is not available on a regional basis. As a result it is not included in the Scottish GERD figures but is included in the UK GERD figures.
3. A summary quality report for the ONS BERD Statistical Bulletin is available at: http://www.ons.gov.uk/about-statistics/methodology-and-quality/quality/qual-info-economic-social-and-bus-stats/quality-reports-for-business-statistics/index.html.
Discontinuities in the data
4. Between the release of the 2007 and 2008 GovERD figures a large R&D employer in Scotland was reclassified from the government sector to the higher education sector. This reclassification resulted in a considerable decrease in GovERD expenditure between 2007 and 2008.
Definition of R&D
5. The ONS R&D surveys follow the definition of research and development proposed by the Organisation for Economic Cooperation and Development (OECD) and published in the 'Frascati' Manual. According to the manual, R&D is defined as:
"Creative work undertaken on a systematic basis in order to increase the stock of knowledge, including knowledge of man, culture and society, and the use of the stock of knowledge to devise new applications."
6. The definition therefore excludes activities such as market research, most software development, routine testing and quality control and artistic design work.
7. The cash values are converted to real terms using Treasury GDP deflators. The deflators are available at: http://www.hm-treasury.gov.uk/data_gdp_index.htm
Time period for which the results relate
8. Respondents to the ONS BERD survey were asked to make a return for the calendar year 2009 or the nearest 12 month period for which figures were available. The HERD and GovERD figures relate to the financial year 2009/2010.
9. The 2007 and 2008 BERD data and the 2008 GovERD data have been revised to take account of company misreporting and late receipt of data.
Business, Enterprise and Energy Statistics
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Statistician: Marina Curran 0300-244-6813