Policies to promote research and development (R&D) are high on the government's agenda. R&D and innovation are seen as key drivers of economic growth and important for raising UK productivity. This paper considers recent trends in UK R&D performance. We show that UK R&D is more internationalised than that of other G5 countries and is becoming increasingly so at a faster rate. A rising share of UK R&D is funded from abroad and UK firms are undertaking more of their R&D overseas. Using an international panel of countries, we show that R&D in one country responds to a change in the price in another 'competitor' country. This suggests that UK innovation policies could play an important role in determining whether increasingly footloose R&D locates in the UK or moves overseas.
CITATION STYLE
Bloom, N., & Griffith, R. (2001). The Internationalisation of UK R&D. Fiscal Studies, 22(3), 337–355. https://doi.org/10.1111/j.1475-5890.2001.tb00045.x
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