Annual Innovation Report
The Annual Innovation Report originated from a recommendation in Lord Sainsbury's review of Science and Innovation Policies, Race to the Top, in 2007. The report provides an annual snapshot of innovation performance in the UK, including on investment and R&D, venture capital, skills and the economic impact of innovation.
2010 Annual Innovation Report
BIS and NESTA launched the 2010 Annual Innovation Report on 25 January 2011. The report highlights the important role innovation plays in business, the research base and government and its vital contribution to driving economic growth.
This years’ report was prepared jointly with Nesta who made a valuable contribution through their wide ranging expertise in innovation, and particularly their work on the Innovation Index the second instalment of which is also being released on 25 January 2011.
2010 Key findings
R&D intensity in the UK, overall and in business, has remained below many major developed economies and business R&D dropped by 2.5 per cent between 2008 and 2009 to £15.5 billion. Overall total R&D intensity has remained broadly stable at around 1.9 per cent of GDP from 1997 to 2008.
Business R&D intensity has also remained stable at just over 1 per cent of GDP.
Nominal investments in intangible assets have risen 4.6 per cent per year since 2000 to £140 billion in 2008. They account for 14 per cent of private sector output.
Innovation drives economic growth - it has accounted for 63 per cent of annual labour productivity growth since 2000, with investments in intangibles accounting for 23 per cent of productivity growth. Investment in intangibles in 2008 also helped reduce the negative impact on productivity of the start of the recession.
Venture capital investment continued to decline, most likely as a result of the downturn, from €1.53 billion in 2008 to €782 million in 2009.
The UK has seen a strong increase in science and technology human resources from 37 per cent of the labour force in 2001 to 44 per cent in 2009.
Turnover for UK businesses from innovation products increased from less than 8.5 per cent in 2006 to 10.5 per cent in 2008.
University knowledge exchange income, valued at over £3 billion in 2008/09, increased by 6 per cent per year between 2003/04 and 2008/09.
Overall government investment in R&D, incorporating the science budget, higher education funding councils and direct government expenditure on R&D was valued at over £9.4 billion in 2008/09.
Previous reports
You can view the 2009 and 2008 Annual Innovation Reports by following the links below:
