Select Committee on Science and Technology Appendices to the Minutes of Evidence


IPMS Analysis of Development Based on "SET Statistics 2000" and "Science Budget 2000" (continued)

GOVERNMENT R&D

  9.  The Frascati Manual divides R&D into three related activities; basic research, applied research and experimental development. Table 4 shows that civil R&D budgets fared slightly better than those for SET over the past 10 years and will continue to do so. However within MoD there is a clear emphasis on development, on which there is a planned increase in expenditure of 21.8 per cent between 1999-2000 and 2001-02. Research expenditure over this period will fall by 16.6 per cent.

Table 4

COMPARISONS OF CHANGES IN SET WITH R&D EXPENDITURE (% CHANGES)

  
1989-90 to 1999-2000
1999-2000 to 2001-02
  
SET
R&D
SET
R&D
Civil Depts
-13.3
-8.8
+3.1
+5.6
Civil Depts (exc NHS)
-36.8
-36.2
+5.0
+9.2
Defence
-31.5
-31.5
-2.5
+10.5
Total Depts
-25.0
-24.1
-0.3
+8.6
Total Depts (exc NHS)
-33.4
-33.1
-0.1
+9.4


  Source: SET Statistics 2000 Tables 2.2 and 3.2.

  10.  In key departments, both SET and R&D have fallen as a proportion of total departmental spending as shown below.

Table 5

SHARE OF DEPARTMENTAL SPENDING ON SET AND R&D (%)

  
1988-89
1998-99
  
SET
R&D
SET
R&D
MAFF
3.2
2.6
2.4
2.4
DTI
7.1
5.3
5.6
4.1
MoD
41.9
43.7
35.6
36.7


  Source: SET Statistics 2000 Tables 2.5 and 3.3.

PURPOSE OF SET EXPENDITURE

  11.  Table 6 sets out the purpose of R&D expenditure in key departments and research councils. It shows that in HSC and departments where a high proportion of research is devoted to policy support, like MAFF and DETR, there is likely to be very limited scope for commercialisation of research output.

Table 6

R&D EXPENDITURE BY PRIMARY PURPOSE (1998-99 OUTTURN, % OF TOTAL)

  
General Support
Government Services
Policy Support
Technology Support
OST
100
0
0
0
BBSRC
96.3
0
0
3.7
NERC
88.6
0.7
8.3
2.5
EPSRC
89.9
0
0
10.1
PPARC
94.9
0
0
5.1
MAFF
8.3
0.07
70.3
21.4
DETR
0.2
10.2
66.8
22.9
DH (exc NHS)
0.2
48.6
48.9
2.3
HSC
0
0
100
0
Home Office
1.4
92.4
6.6
0
DTI
0
0
48.0
52.0
Scottish Exec
6.6
19.8
32.6
41.1
Welsh Assembly
0
86.7
12.8
0


  Source: SET Statistics 2000 Table 3.6.

  Notes:

  1.  General support=all basic and applied R&D.

  2.  Government services=R&D relevant to any aspect of government service provision (all defence included here).

  3.  Policy support=R&D which government funds to inform policy (excluding government services and technology support) and for monitoring developments of significance to the welfare of the population.

  4.  Technology support=applied R&D that advances technology underpinning the UK economy (excluding defence). The category includes strategic as well as applied research and pre-competitive research, under schemes such as LINK.

FUNDING SOURCES

  12.  Table 7 shows the UK's heavy dependence on government to fund defence R&D.

Table 7

UK GROSS EXPENDITURE ON R&D PERFORMED IN THE UK (1998, % SHARES OF FUNDING)

  
Total
Civil
Defence
Government Departments
16.8
8.6
63.4
Research Councils
7.3
8.5
0
Higher Education Funding Councils
7.0
8.2
0
Higher education institutions
0.8
1.0
0
Business enterprise
47.3
52.3
19.1
Private non-profit
4.0
4.7
0
Abroad
16.8
16.7
17.5


  Source: SET Statistics 2000 Table 6.1.

INTERNATIONAL COMPARISONS

  13.  Table 8 shows the UK lagging behind international competitors both in terms of government investment in R&D and business investment in R&D as a share of GDP. The comparisons are for 1998, which are the lastest figures available. However, these pre-date the effects of the Comprehensive Spending Review.

Table 8

INTERNATIONAL COMPARISONS OF R&D EXPENDITURE (1998, % OF GDP)

  
Government (GERD)
Business (BERD)
UK
1.82
1.19
Germany
2.32
1.57
France
2.20
1.37
Italy
1.03
0.56
Canada
2.89
2.10
Japan (1997)
1.61
1.03
USA
2.77
2.08


  Source: SET Statistics 2000 Figure 7.2.

EMPLOYMENT IN R&D

  14.  There has been a significant decline in the total number of staff employed in Government R&D over the last 10 years, as shown in Table 9. This shows the effect of privatisations over the period in depleting the government scientific resource.

Table 9

PERSONNEL ENGAGED ON R&D IN GOVERNMENT DEPARTMENTS

  
1988-89
1998-99
% Change
Research Councils
12,970
11,117
-14.3
MAFF
2,201
1,875
-14.8
DETR
1,505
223
-85.2
HSC
113
123
+8.8
Home Office
244
388
+59.0
DTI
1,003
126
-87.4
Scottish Executive
453
1,670
+268.7
Welsh Assembly
10
2
-80.0
Total Civil Departments
8,232
6,237
-24.2
MoD
16,206
11,843
-26.9


  Source: SET Statistics 2000 Table 8.4.

  Note: Scottish Executive figures include staff at SARIs, SAC and SNH from 1992-93.

  15.  Looking more specifically at employment by function, Table 10 shows that the decline in numbers of researchers employed by research councils has been offset by growth in the number of technicians employed. The increase in research staff employed by MoD is due to a steep upward shift in 1998-99 following a period of long term decline. In 1997-98 MoD employed 4,940 researchers, 1,499 technicians, and 2,067 other support staff and administrators. Across all areas there has been a substantial cut in support staff.

Table 10

PERSONNEL ENGAGED ON R&D IN GOVERNMENT BY FUNCTION

  
1988-89
1998-99
% Change
Research Councils
Researchers
6,127
5,245
-14.4
Technicians
1,589
2,571
+61.8
Others
5,254
3,301
-37.2
TOTAL
12,970
11,117
-14.3
Civil Depts
Researchers
3,683
2,498
-32.2
Technicians
1,449
1,451
+0.1
Others
3,100
2,288
-26.2
TOTAL
8,232
6,237
-24.2
MoD
Researchers
5,209
6,625
+27.2
Technicians
2,809
2,654
-5.5
Others
8,188
2,564
-68.7
TOTAL
16,206
11,843
-26.9


  Source: SET Statistics 2000 Table 8.5.


 
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