This report assesses the potential future impacts of increasing R&D expenditure in the UK, drawing on the E3ME macroeconomic model maintained by Cambridge Econometrics. Specifically, it considers the impacts on GDP, employment and productivity of meeting a target in which the share of R&D expenditure in GDP increases to 2.4% by 2027, compared to a current rate of around 1.7%.
It also includes:
- an assessment of different ways in which the R&D target might be met, including different weightings of expenditure across sectors and in different parts of the country
- possible funding measures for additional R&D
- estimates of the impacts of 2 specific technologies on the UK economy, digitalisation and the electrification of transport
The report was commissioned by BEIS and carried out by Cambridge Econometrics Ltd.