This report deals with the situation relating to research in the United Kingdom (UK). The actual amount spent on R&D (GERD) in 2006 was €34,037m, contributing 15.9% of the aggregate EU-27 R&D expenditure, estimated by Eurostat as €213,127m in 2006 (€226,119m in 2007). In its ten-year Science and Innovation Investment Framework (SIIF) (2004-2014) the UK expressed the ambition to reach a ratio of Gross Expenditure in R&D (GERD) to GDP of 2.5% by 2014, aiming to increase the size of the research system relative to the economy as a whole (HM Treasury, 2004). Eurostat reported R&D intensity (GERD/GDP) in the UK of 1.76% in 2006, just below the estimated EU average of 1.84% for the same year (estimated as 1.83% for 2007). The figure has fluctuated around this level for more than a decade. According to the NRP 2008, the UK has experienced a decade of strong growth and job creation and the flexibility of its economy provides a solid platform from which to face the global economic shocks. However, in the face of the global economic downturn and the UK’s entry into recession, both the Government and external forecasters expect a slowdown in growth, into negative figures, certainly for 2009 and perhaps beyond. Faced by such challenging economic circumstances, the UK NRP emphasises the importance of establishing macroeconomic stability as a prerequisite for growth and structural reform, as central to the Lisbon strategy and a key element of the EU Broad Economic Policy Guidelines.

This analytical country report is one of 33 reports for EU Member and Associated States prepared as part of ERAWATCH. ERAWATCH is a joint initiative of the European Commission's Directorates General for Research and Joint Research Centre. For further information on ERAWATCH see http://cordis.europa.eu/erawatch. Analysis of policy mixes to foster R&D investment and to contribute to the ERA. Comments on this report are welcome and should be addressed to Mariana Chioncel (Mariana.Chioncel@ec.europa.eu).