R&D investment falls in Northern Ireland

Spending on research and development in Northern Ireland fell by 2 per cent last year, new figures have shown.

Some £344 million was invested in R&D in 2008, £7.1 million less than a year earlier.

The decline is being blamed on a 4.7 fall in Higher Education R&D expenditure and a decrease of 0.6 per cent in Business R&D spend. This was partially offset by a rise of £1.2million - 8.2 per cent - in Government investment.

Last year was the first time business R&D spending, which accounted for more than half of the total investment, had fallen since 2003. Almost 42 per cent was spent by the higher education sector, with the remainder made up of Government funds.

Within the business sector, most of the money was spent by the manufacturing sector, which accounted for 62 percent, or £114.3 million IN 2008. Spending fell in the services and other sectors, declining 14.4 per cent in cash terms to £69.7 million.

Small and medium sized firms spent less on R&D during 2008, with investment declining £11.1 million, or 9.5 per cent between 2007 and 2008. Overall, however, the sector has increased investment 88.1 per cent since 2003 to £106.1 million.

Enterprise minister Arlene Foster said R&D investment was "business critical", and not a luxury only for times of prosperity.

"While there has been a small decrease of 0.6 per cent in Business R&D in 2008 it is reassuring to note that over the last five years expenditure has increased by 51.6 per cent. Businesses must continue to invest in R&D and recognise that research and innovation are crucial to remaining competitive in the post-recession global economy," she said.

"It is very important that our indigenous companies, many of whom are SMEs, continue to invest in R&D. These are the companies, especially when working together in new and dynamic collaborative R&D based ventures, which will propel our economy into growth when the upturn finally arrives."