The UK’s Research and Development (R&D) sector is dynamic, innovative and covers a wide range of technologies.  With one quarter of all researchers based there, London is a key hub of the UK’s R&D activity.

10 key facts about the Research and Development sector in London and the UK.

• A world-class proposition: The expertise of world-renowned scientists, access to leading research institutions with cutting-edge technology, a robust system of protecting intellectual property and a wide range of incentives make the UK a natural choice for large-scale R&D investment. 
• Large market size: Second only to the US, the UK R&D sector is valued at almost $40 billion per year [1]. 
• Attracts foreign direct investment: The UK is Europe’s top R&D location.  From 2003 - 2006, the number of overseas investment projects increased from 83 to 168.  Around 45% of all business R&D undertaken in the UK is funded by overseas-owned companies including Ford, Pfizer, Airbus, Eli Lilly, Nokia and Syngenta [2]. 
• EU funding: Between 2003 and 2006, UK universities received $1.28 billion from the European Union; almost 25% of all EU academic funding available [3]. 
• Academic excellence: The UK research base now ranks second only to the USA.  Behind Harvard, Oxford and Cambridge are ranked as the number two and three top universities in the world.  In the past three years alone, 25 spin-outs from UK universities have floated on the stock market with a combined value of $2.8 billion [4]. 
• Predominance of London: 25% of all UK researchers are employed in London. Five of the top ten UK research universities are in London (Imperial College, University College, London School of Economics, King's College and St George's Hospital Medical School) [5]. 
• London Technology Network:  A not-for-profit joint venture between London Business School and University College London, the London Technology Network promotes innovative collaborations and technology transfer to stimulate technology-intensive innovation between universities and business across London and the South East.
• Healthcare R&D hub: UK based pharmaceutical giant GlaxoSmithKline is the world’/ s top 10 R&D spender.  The total UK healthcare R&D spend exceeds $750 million.  London has the highest number of academic staff and attracts the greatest proportion of health related research funding of any city in the UK.  
• Strong government commitment:  The government is strongly committed to the R&D sector with $700 million provided for a special programme (2005-08), focusing on seven Key Technology Areas relevant to all major business sectors and future challenges.  These seven areas are:
  • advanced materials
  • bioscience and healthcare
  • design engineering & advanced manufacturing
  • electronics and photonics
  • emerging energy technologies
  • information and communications technologies
  • sustainable production and consumption. 
• Tax breaks: Government support is also demonstrated in the generous tax credits available. In addition to a 100% deduction, SMEs are entitled to a further deduction of 50% of their spending on qualifying R&D (from their taxable income).  Large companies are entitled to a further deduction of 25%.  To date, there have been over 22,000 claims worth $3.4 billion.

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[1] R&D in the UK, UKTI
[2] Ibid
[3] Ibid
[4] Ibid
[5] London Technology Network