Question to the Department for Business, Energy and Industrial Strategy:

To ask the Secretary of State for Business, Energy and Industrial Strategy, how much private R&D investment is estimated to be crowded in for each pound of public R&D spend; how that estimate is calculated; and whether that is dependent on (a) geography and (b) sector.

BEIS published “The relationship between public and private R&D funding” (BEIS Research Paper Number 2020/010) on 1 July 2020 at https://www.gov.uk/government/publications/research-and-development-relationship-between-public-and-private-funding(opens in a new tab) carried out by Oxford Economics Ltd

They estimated the monetary impact of the long-run leverage rate, suggesting that each £1 of public R&D eventually stimulates between £1.96 and £2.34 of private R&D

The study drew on OECD data for 41 countries from 1961 to 2017 with varying degrees of completeness.