Latest research and development figures released

Total expenditure on Research and Development (R&D) in Northern Ireland was some £319.2 million in 2006.

This represents a rise of £8.4million (2.7%) in real terms over the last year. Of the £319.2 million spent on R&D, £155.4 million (48.7%) was spent by businesses and £150.1 million (47.0%) by the Higher Education sector and the remainder was other government expenditure.

Over the year to 2006, there was an increase in expenditure in real terms by businesses but expenditure by Higher Education and government decreased slightly (0.3%).

Total business expenditure on R&D increased by 6.0% in real terms over the year and locally owned companies accounted for a marginally higher proportion of expenditure (50.3%) than foreign owned companies (49.7%).

Over the year to 2006, R&D expenditure carried out within companies (a subset of total business R&D expenditure) in Northern Ireland increased by 3.8% in real terms, compared with 4.6% for the UK as a whole. In cash terms, total business R&D expenditure (£155.4 million) in 2006 was similar to the level reported in 2002.

The 10 biggest spending companies accounted for 41% of the R&D in Northern Ireland in 2006, slightly lower than in 2005 (43%). Although the manufacturing sector still accounts for 60% of expenditure, the proportionate contribution by the non-manufacturing sectors (mainly the service sector) continued to increase from 38% in 2005 to 40% in 2006.

Economy Minister, Nigel Dodds believes the latest figures are testimony to a Northern Ireland committed to R&D investment. He said: “It is encouraging to see an increase in business expenditure on R&D over the year in real terms, and particularly positive to see that locally-owned businesses are spending as much (£78.2 million) as foreign owned businesses (£77.2 million).

“The continuing rise in R&D expenditure is an important step in improving Northern Ireland’s competitive position in global markets, but we must do more.”

The Minister also encouraged more investment in R&D by the business and higher education sectors. He said: “By investing in R&D we are investing in our future. It is only by translating ideas into commercially viable ventures that we will secure the high paying jobs that the Northern Ireland economy needs.

“I would invite all businesses to consider how they can break new ground in improving their products and processes. Invest NI offer a range of programmes to assist businesses develop R&D activity as a key driver of competitiveness.

“We want to change attitudes to R&D and I would encourage businesses, higher education and other organisations to see the potential and the possibilities of investing more in R&D.”

Notes to Editors:

1. Full detailed results are available in the Research & Development Statistics Bulletin, which can be accessed at: www.statistics.detini.gov.uk or http://www.detini.gov.uk/cgi-bin/downdoc?id=3286 Alternatively by Tel: (028) 9052 9606, Fax: (028) 9052 9658 or Email: statistics@detini.gov.uk
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