13. Mr. Alan W. WilliamsTo ask the President of the Board of Trade how much was invested in research and development by British industry during 1992-93; and what percentage this represents of gross domestic product.
§ Mr. McLoughlinIn 1992, the latest year for which figures are available, UK businesses undertook £7,930 million of research and development, equivalent to 1.3 per cent. of gross domestic product.
Mr. WilliamsInvestment in research and development by British industry is about one third less than that of our 201 industrial competitors. Does the Minister agree that as a society we should be devoting something like 1 per cent. more of our GDP to research and development? What proposals do the Government have to achieve that?
§ Mr. McLoughlinInvestment in research and development is a matter for companies to take into consideration when they come to formulate their plans. I was encouraged by the CBI innovation trends survey which showed that 50 per cent. of companies had plans to increase their expenditure on research and development in 1993.
§ Mr. CashWill my hon. Friend consider the relative position of our research and development in comparison with Japan, the United States, Germany and all the other countries in the EC? Have we done well enough in relation to those countries? If not, we will go down the tubes.
§ Mr. McLoughlinI agree with my hon. Friend. If one compares our figures with those for Japan and Germany, the UK is behind. However, we are above the other countries in the European Union.
§ Mrs. Anne CampbellDoes the Minister agree that it is important for our international competitiveness to improve our business expenditure on civil research and development? Has not the time come for Government incentives to ensure that companies invest in research and development? Does he consider tax incentives to be a good way forward?
§ Mr. McLoughlinWe will always look at any representations that are made. The Government have a good record on rates of taxation for companies and it is for companies to decide how they wish to invest. There have been huge investments in this country.