HC Deb 28 May 1962 vol 660 cc958-9
20. Mr. Wainwright

asked the Parliamentary Secretary for Science what comparisons have been made by the Department of Scientific and Industrial Research, by other official bodies, or by international organisations of which Great Britain is a member, between research expenditure by industry in Great Britain and in the United States of America, in terms of expenditure per employee and also as a percentage of net output.

Mr. Denzil Freeth

The Advisory Council on Scientific Policy's Report for 1959–60 compared the total national expenditure on research and development in the United Kingdom with the corresponding expenditure in the United States, and showed that, in both cases, this amounted to between 2 per cent. and 3 per cent. of the gross national product. No official comparisons have been made in respect of research expenditure by industry. As I announced to the House on 20th March, a new survey is being carried out in this country in respect of 1961–62.

Mr. Wainwright

Does the hon. Gentleman realise that this country is far behind America in the spending of money on research and technological and scientific development? Does he know that America spends five times more than this country spends, and twice as much per individual, and that the net output there is equal to twice as much per employee? When will the Government do something in regard to research and technological development to ensure that this country will at least be able to offer a comparison with the United States which will give the impression to people here that we are approaching American standards?

Mr. Freeth

The hon. Gentleman will recall that the Advisory Council came to the conclusion that, as regards civil research and development, the figure in both countries was about 1¼ per cent. of the gross national product. I believe that, in general, this is a fairer basis of comparison than a comparison of expenditure per worker if one is talking about a country with very much higher wages and, therefore, a very much higher amount spent per worker.

Mr. Wainwright

Is not the Minister making comparisons which are not quite fair and just? Does not he know that, if one takes into account the salaries of the scientists, America spends 12 times more than this country spends? How can the hon. Gentleman reduce such figures down to 1¼ per cent., having regard also to the fact that a further examination of the statistics will show that America spends five times more than is being spent here, that twice as much per individual is spent, and that the net product is far greater in America than it is in this country?

Mr. Freeth

I can only refer the hon. Gentleman to the facts stated in the Advisory Council's report which I have mentioned. I remind him also that there is a new survey being carried out in this country. When the results are published, doubtless the hon. Gentleman's remarks will have been noted.

Mr. Mitchison

Has the hon. Gentleman noticed the article on this matter in the last issue of the Journal of the National Institute of Economic and Social Research which contains a great deal more information than there was in the report to which he has referred? Is he prepared to consider that?

Mr. Freeth

I have read the article to which the hon. and learned Gentleman refers. I venture to say that it did not, in our opinion, make sufficient allowance for work which is performed in this country by Government or public corporations and which is performed by industry even though financed by Government in the United States.