UK R&D spending rises to £79.4bn in 2024, but recovery remains fragile

New figures released today show total spending on research and development (R&D) rose 2.6% in real terms to £79.4bn in 2024.

Despite this marking the second year the Gross Expenditure on R&D (GERD) has grown, following a 0.7% rise in 2023, the National Centre for Universities and Business (NCUB) warns R&D investment recovery remains fragile.

The figures reveal that R&D intensity has remained at approximately 2.7% of GDP for the last three years, in line with the OECD average of 2.72%. OECD data places the UK fourth in R&D intensity in the G7, behind Japan (3.6% of GDP), the US (3.4%) and Germany (3.1%), though ahead of France, Canada and Italy.

The 2024 rise is driven by a 2.3% increase in Business R&D investment, which together with higher education accounts for approximately 92% of total spending. While a positive indicator, the GDP comparisons suggest there is more to be done to realise the UK’s ambitions of being world leaders in research and innovation.

Dr Joe Marshall, NCUB CEO, said:

“It’s encouraging to see R&D spending rising for a second year, but this is a tentative signal, not a turnaround. Business R&D is still fragile, and our R&D intensity remains mid-table among the G7’s leading economies. Catching up with Japan, the US and Germany will take sustained investment over the long term.

“Business leaders tell us they need clearer priorities, stronger pathways to market, and less complexity. Turning this into lasting growth will require government, universities and industry to act together to create the confidence, partnerships and conditions needed to unlock more private investment and accelerate research and innovation across the UK.”

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