Written question asked by Lord Turnberg (Labour), in the House of Lords. It was answered by Baroness Wilcox (Conservative) on Thursday, 21 October 2010.

Research Councils UK

Question: To ask Her Majesty’s Government what is their assessment of the conclusion of Research Councils UK that a reduction of £1 billion in funding for research will lead to a fall of £10 billion in gross domestic product.

Answer: There is a substantial body of economic analysis that explores returns, both private and social, to R&D expenditure. This literature, which looks at different sectors, countries and time periods, invariably suggests strong returns to science funding, with social returns usually outstripping private. Recent work by Professor Jonathan Haskell (Imperial College) and Dr Graeme Wallis (HMT) reports strong growth returns to Research Council investment in the UK. Specific estimates of this type must be treated with considerable caution because of the complex methodological issues involved, but it is likely that the economic returns to UK science are strong. The BIS reporting system for the Research Councils explores the economic and research outcomes achieved by each of the councils, producing evidence supporting the link between science and growth. For that reason, the Government will continue to focus expenditure efforts on the UK's world-leading institutions that underpin interactions between science and business in the UK.

Secondary information