Research And Development (Hansard, 11 May 1994)

§ 21. Mr. Clapham
To ask the President of the Board of Trade what plans he has to increase expenditure on civil research and development.

§ Mr. McLoughlin
Information about my Department's planned expenditure on civil research and development up to 1996–97 was given in the recently published "Forward Look of Government-Funded Science, Engineering and Technology".

§ Mr. Clapham
There was not a great deal of factual information there. The Minister will be aware that, in per capita and absolute terms, Britain spends less on civil research and development than our major competitors. Is he aware that a recent study by the Trade and Industry Select Committee on the competitiveness of British industry states that one of the reasons for that is short-termism? What is the Minister doing to overcome the short-termist culture that is holding back British industry?

§ Mr. McLoughlin
The hon. Gentleman makes several points. As my right hon. Friend the President of the Board of Trade has already said, we will be addressing some of those issues in the White Paper that will be published next week.

§ Mr. Batiste
Does my hon. Friend agree that the real relative shortfall in research and development spend in Britain is in the private sector? If companies do not maintain an adequate research and development capacity of their own, they are less likely to be able to implement innovative change. Will that be one of the issues that will be addressed in the competition White Paper?

§ Mr. McLoughlin
My hon. Friend touches on an important point which needs to be addressed by private companies. A number of companies that I see are spending significant amounts on research and development. That is very important, and it is also important to create the right framework which enables companies to put their investments to one side. That is certainly something which we shall consider.