Select Committee on Trade and Industry Minutes of Evidence



  All the major aerospace nations (US, UK, France, Germany, Italy, Russia) undertake both basic and applied aeronautical research. The US is home to by far the largest single domestic R&D budget (approximately £10 billion per annum). Although total R&D expenditure in the UK has increased over the last five years, both the French and German Governments have strongly supported aerospace related research over the same time period. In addition, many nations in South America, Asia and the Pacific ring are also currently increasing their support of total expenditure of aeronautical research.

    —  Total aerospace R&D in France was twice that of the UK in 1997 (latest comparable data), and for R&T alone it was almost three times the level of the UK.

    —  Germany, which has an aerospace industry roughly half the size of the UK, spent almost 50 per cent more on R&D and roughly an equal level of R&T than the UK in 1997.

    —  Data on US aerospace expenditure on R&T is unavailable from public sources. However, total R&D (which subsumes R&T) is at least 10 times the level of the UK for an industry which is roughly four times the size in terms of turnover.


  The Medium company band represents those companies which would benefit from an extension of R&D tax credits to include companies with turnovers below £100 million.

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