Business Research And Development

Total research and development expenditure in cash terms in business in 2009 totalled £15.6bn, that is a fall of 2.5% on 2008. The ONS sub-divides business R & D into civil and defence spending. Civil R & D expenditure decreased by 1.4% to £13.7bn and defence expenditure decreased by 10.2% to £1.9bn. In real terms total expenditure decreased by 4.1% to £15.6bn within which civil expenditure decreased by 3% to £13.7bn.

The product group with the highest R & D performance was pharmaceuticals at £4.4bn or 28.4% of all spending. Other significant product groups included aerospace (£1.5bn), computers (£1.5bn), motor vehicles and parts (£1.1bn) and telecommunications (£1.1bn). The region with the highest performance in terms of expenditure was the East of England (24.9%), the South East (23%) and the North West (13.1%) and the lowest in England was the North East (2%) and in the UK N. Ireland (1.9%). In terms of employment, the South East was highest employing the most people in R & D with 35,000, the East of England employed 30,000. The North East, Wales and N. Ireland employed the least at 4,000 each.

Estimates Show Decrease In GDP

The preliminary estimates of GDP published by the Office for National Statistics show that GDP has decreased by 0.8% in the second quarter of 2009 compared to Q1. The decline was due to noticeable decreases in all component aggregates. Manufacturing has decreased by 0.3% which is an improvement on the last few quarters and production in total is estimated to have decreased by 0.7%. Total services have decreased by 0.6%. The decrease in business services and finance was 0.7% compared with 2.5% in the last quarter. They contributed most to the decline in total output. Output in the construction industry decreased by 2.2% compared with 6.9% in the last quarter. Decreases in other measured sectors were in distribution, hotels and restaurants 0.5% this quarter compared with 1.5% in the last, transport, storage and communication 2.1% compared to 3%, government and other services decreased by 0.2% compared with an increase of 0.2% in the last quarter. The biggest contributor to the decrease was public administration and defence. The agricultural sector decreased by 2.3% compared to 0.1% in the last quarter.