Government investment in research and development (R&D) can generate significant additional R&D investment in the private sector. This study estimates this “R&D leverage rate” for large (TL2) OECD regions and compares the 12 UK regions, i.e. the three nations of Northern Ireland, Scotland and Wales and nine English regions, with TL2 regions in other OECD countries. Estimates show that a 10% increase in government investment provides a similar percentage increase in R&D investment in the private sector in high-, mid-level- and low-R&D-intensity regions. The monetary returns for an additional GBP spent do, however, differ across the three types of regions due to differences in the relative amount of R&D investment by the government and the private sector.
Leveraging government R&D investment to boost private R&D investment in regions
UK regions and nations in international comparison
