In 2013 the top 2,000 firms spending money on Research & Development included:
118 from the UK; 668 for the USA; & 119 from China....
a decade later: in the top 2,000;
63 from the UK (just above half); 681 from the USA (a small increase); and 524 from China (over four times as many).
From which we might conclude that part of the UK's economic doldrums stem from a declining interest in R&D, perhaps because UK managers are too busy feathering their own nests?
#productivity #investment
h/t FT
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TerryB
In response to this post@ChrisMayLA6 And businesses owned by investment companies that want to see increased share value now, not sustained growth into the future. Vapourware is much more valuable to them than future profits.
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BashStKid
In response to this post@ChrisMayLA6 Sounds about right for the UK.
But also note the stasis in America, coasting along, paying more attention to marketing and respraying and accounting tricks than innovation.
Unlike China, where govt & private firms have (by Western standards) comprehensive tiers of researchers, being pushed to innovate, patent, and scale up rapidly.
Haven’t read the FT article, what are the EU, Indian, and Asean+Japan numbers?
@BashStKid
Although the article uses EU derived data (as far as I can see) the entire article is pitched as a discussion of that three way comparison.... so no comparative EU data quoted, sorry
by Emeritus Prof Christopher May ;
@BashStKid @ChrisMayLA6 Relevantly today China announced a significant advance in fusion development. The country that wins that race wins all the chips.
by TerryB ;
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Imbrium Photo
In response to this post@ChrisMayLA6 Maybe increasing Corporation Tax would help with this, currently a company with £100 spare can chose to take out £75 and pay £ 25 tax, or invest £100 in R&D, if the tax was (much) higher there would be more incentive to re-invest over giving the money to shareholders etc.
@imbrium_photography
Hmmm, maybe; but its a managerial problem that such extended incentivisation might be required for managers to have an interest in the long-term success of their firms - which is not to disagree that this would be one 'solution'
by Emeritus Prof Christopher May ;
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Cadbury Moose
In response to this post@ChrisMayLA6
The relentless drive of "All Hail the Holy Bottom Line" and cutting costs by any means they can think of, regardless of the long-term implications.
Reduced staffing levels, no allowance for training, outsourcing and finally offshoring have done immense damage.
Takeovers, mergers and Brexit have all taken their toll, too.
Short-term thinking is a real problem in the UK. (If you move all the work abroad, who's going have the money to buy your products?)
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