§ Mr. WilsonTo ask the Secretary of State for Defence what is the planned target level for defence research and development spending, in terms of(a) expenditure and (b) proportion of gross domestic product over the next three years.
§ Mr. SainsburyIt is expected that defence expenditure on research and development will be £2,272 million in 373W 1988–89. This is approximately 0.5 per cent. of GDP for that year, as estimated in the Autumn Statement. For expenditure in subsquent years to 1990–91 would refer the hon. Member to the statistical series in the "Annual Review of Government funded Research and Development for 1988." Table 2b to page 65, is however based on a somewhat different definition of R and D.
§ Mr. WilsonTo ask the Secretary of State for Defence what measures are being introduced to encourage commercial military research and development to supplement Government spending in this area.
§ Mr. SainsburyThe Ministry continues to pay very close attention to the level of public expenditure on defence research and development and our commercial approach to defence procurement encourages companies to invest their own money in R and D in order to remain competitive. In addition, we are developing a closer alignment with industry so that it understands our anticipated future requirements and where best to commit its own R and D resources. We also encourage industry to consider the defence export and civil potential of both commercial and MOD-funded R and D.