Spending on research and development in the Welsh private sector has grown at nearly double the rate for the 海角视频 as whole, but its share of total expenditure remains below 2%.
New figures from the ONS show that R&D undertaken by 海角视频 businesses grew by £900m to £26.9bn in 2020. The increase of 3.5% was similar to recent year-on-year growth.
In Wales R&D spend was up 6.6% from £463m to £494m. The R&D expenditure in Wales accounted for just 1.8% of the 海角视频 total amount. Scotland had a 5.3% share and Northern Ireland 2.3% - with 90% accruing in England.
Only in the north east of England at 1.6% was the share of the 海角视频 total lower than Wales.
However, the percentage year-on-year rise in Wales was nearly double the increase for the 海角视频 as a whole.
The east of England had the largest growth in the value of expenditure, increasing by £425m (7.8%) to £5.8bn in 2020.
The East of England had the largest share of the 海角视频 total at 21.7%. The south east of England, with £5.4bn, was second highest at 20.4%.
Mark Tighe, chief executive of R&D tax relief specialist Catax, said: "The rate that R&D spending in Wales grew last year was almost double that of the 海角视频 overall. That’s a phenomenal performance in a pandemic. R&D spending in Wales rose by 6.7% to £494m while the 海角视频 rate of growth only topped 3.5% in 2020.
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“It’s true that Welsh businesses are starting from a lower base, but if they can build on this success it bodes well for the country’s post-Brexit economy. Its advances in this area over the past decade are also promising. R&D spending in Wales has grown 111.1% since 2010, again comparing favourably with the 67.9% achieved by the wider 海角视频.”
For the 海角视频 as a whole software development product had the largest growth in expenditure on R&D in 2020, with an increase of £314m (18.3%) to £2bn.
Total 海角视频 business employment in R&D grew by 18,000 to 283,000 full-time equivalent positions, an increase of 6.8% since 2019. In Wales R&D business employment in 2020 was unchanged at 7.000 - representing 2.5% of the 海角视频 total.
In Scotland, with a 6% share of the 海角视频 employment rate, some 17,000 were employed in private sector R&D - rise of 2,000 on 2019. Northern Ireland, with a 2.8% share, was down 1,000 to 9,000. The highest employment level for any nation or region was the south east of England with 53,000. East of England was second with 46,000 and London third with 35,000.
Some 75% of business R&D was funded by businesses’ own funds (£20.3bn) followed by overseas funding at 15% (£3.9bn). Businesses’ own funds also had the largest growth in the value of funding of R&D in 2020 at £661m.
Expenditure consisted of civil R&D of 93% (£25bn) and defence R&D of 7% (£2bn. The split between civil and defence has changed over time with civil R&D accounting for 88% and defence R&D accounting for 12% in 2009.