The West Midlands bucked a falling trend by increasing investment in research and development last year as the country lost more ground on European rivals.
New data shows £1.46 billion was spent on R&D in the region in 2012, an increase of more than £200 million, on the back of rising automotive and aerospace investment.
That came as falling investment in 海角视频 pharmaceuticals saw the country’s total R&D spend dip four per cent in constant prices from a year earlier, to £17.1 billion, the first fall since the recession.
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Despite this rise on the back of Jaguar Land Rover’s success story, the region remains an under-achiever in terms of R&D. It remains behind the South East, at £4.1 billion, East, at £3.5 billion, and North West, at £1.8 billion, despite all three suffering major falls last year.
On top of that, the 海角视频’s commitment to private sector R&D remains low compared with many of its competitors at 1.1 per cent of GDP – as the EU average stands at 1.94 per cent.
The 海角视频-wide figure was hit hard by the closure of Pfizer’s research and development site in Kent, as pharmaceuticals is the main sector for R&D.
Birmingham Post columnist Dr Steve McCabe, director of research degrees for Birmingham City Business School, said: “We’re going in the right direction, but we need to get there faster.
“As usual, a lot of that figure will be down to Jaguar Land Rover, and we need to do something.
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“God help us if Jaguar Land Rover was ever to move.” He added: “I know Greater Birmingham and Solihull Local Enterprise Partnership is keen to use the skills of the universities, and that is where the research happens.”
There are 14,000 people employed in R&D in the West Midlands, although growing that figure is a major target for decision-makers, with growth of the life sciences sector seen as key to that.
The ONS data shows R&D in motor vehicles and parts accounts for 10.1 per cent of the total spend, while aerospace is 8.9 per cent and other machinery is 5.8 per cent.
Pharmaceuticals remains the main sector, at 24.6 per cent, while computer programming accounts for 11.3 per cent.
According to figures from the Organisation for Economic Co-operation and Development (OECD), R&D by public and private organisations had accounted for 1.77 per cent of 海角视频 GDP in 2011.
That figure is well below 3.37 per cent in Sweden, 2.84 per cent in Germany and 2.25 per cent in France.
Experts at Capital Economics said the West Midlands had benefited from investment in the automotive and aerospace sectors, but expects other regions to fight back in the years to come.
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In a report it said: “Aerospace R&D rose by £42 million, even though the sector is not the region’s main strength.
“Meanwhile, of the £176 million 海角视频 increase in vehicle and other transport equipment R&D, the large bulk, £140 million, occurred in the West Midlands. JLR, BMW and MG all invested in car design and development in the region. As a result, the West Midlands have at last moved up a little in the R&D stakes
“We think that over the next half-decade the North West, South East and East of England will all see R&D recoveries. They, like London, will gain from current policy to concentrate public-sector R&D in the strongest universities, and from private sector investment following public sector, as well as from continuing spending by aerospace and life sciences and digital.”