<p>A long-standing concern surrounding the performance of the UK economy is its perceived failure to maintain the same technological pace as its competitors. Industrial research and development (R&D) expenditure as a proportion of GDP fell during the 1980s at a time when all other G7 countries increased the proportion of their output given over to R&D. This ratio is now lower in the UK than in most other G7 countries. If this world-wide trend toward more R&D indicates that industrial production is becoming increasingly science-based, then the UK may be in danger of becoming a relatively low-tech economy. One purpose of this article is to examine whether there is a rational basis for these fears.</p>
Authors
Rachel Griffith
CPP Co-Director, IFS Research Director
Rachel is Research Director and Professor at the University of Manchester. She was made a Dame for services to economic policy and education in 2021.
John Van Reenen
David Sandler
Journal article details
- ISSN
- Print: 0143-5671 Online: 1475-5890
- Issue
- May 1995
Suggested citation
R, Griffith and D, Sandler and J, Van Reenen. (1995). 'Tax incentives for R&D' (1995)
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