Companies need clearer, more stable policy towards both private and public sectors, says Rosalind Gill

More businesses are recognising they must invest in R&D and innovation to remain competitive in a world where technology changes in fast, impactful and often unpredictable ways. The United States, Japan and South Korea are leading on business R&D spending. Each starts from a strong position and is driving sustained growth through large-scale initiatives such as the US Inflation Reduction Act.

In contrast, the UK is one of the few countries in which business R&D spending is falling. Data published by the Office of National Statistics in February showed total business investment in R&D falling by 0.4 per cent in real terms between 2021 and 2022. This looks worse still when compared with a global rise of 5 per cent in the same period, reported in OECD data released at the end of March.