Gross expenditure on research and development Scotland 2021

Key Findings

Expenditure and components of GERD

In 2021, Scotland’s Gross Expenditure on R&D (GERD) was estimated at £5,033 million, 7.6% of the total UK GERD. Between 2020 and 2021, Scotland’s GERD increased by an estimated 4.9%, up £235 million, from £4,798 million in 2020. In comparison, UK GERD increased by 7.0% over the same period.

The largest components of R&D expenditure were the business sector at £3,121 million (62.0% of GERD), followed by the higher education sector at £1,650 million (32.8% of GERD).

Figure 1: Business Enterprise R&D (BERD) accounted for the majority of GERD in all regions in 2021. Higher Education R&D (HERD) accounted for 32.8% of GERD in Scotland in 2021, the highest share amongst the countries/regions.

Composition of GERD, by country/region, 2021.

Source: ONS and Scottish Government. For Figure 1 data see Tables 3A, 4A, 5A, 6A and 7A.

Note that Midlands and South West region includes East Midlands, West Midlands and South West. North region includes North East, North West and Yorkshire & The Humber.

In 2021, BERD spend in Scotland was estimated at £3,121 million, 6.6% (£194 million) higher than in 2020. BERD as a share of GDP was 1.85% for Scotland and 2.01% for the UK in 2021.

In Scotland, HERD spend was estimated at £1,650 million in 2021, 1.7% (£27 million) higher than it was in 2020. Scottish HERD spend represented 11.1% of the total UK HERD expenditure. Scotland ranked top amongst the countries/regions of the UK for HERD spend as a share of GDP. 

In 2021, Government Expenditure on R&D (GovERD) in Scotland was estimated at £166 million, 17.8% (£36 million) lower than in 2020. Whereas Private-Non-Profit (PNP) R&D spend in Scotland increased from £46 million in 2020 to £96 million in 2021. Note that the fall in GovERD, and subsequent increase in PNP, has been driven by the reclassification of an R&D performing organisation, moved from the government sector to the PNP sector. 

EU and OECD comparisons

Figure 2: Estimated at 2.98%, Scotland’s GERD as a share of GDP was above that of the OECD (2.71%) and the EU (2.15%) in 2021. Scotland’s GERD as a share of GDP ranked in the second quartile of the OECD countries in 2021.

GERD as a share of GDP, by country, 2021.

Source: OECD Main Science and Technology Indicators, ONS and Scottish Government. For Figure 2 data see Table 8A.

Note that 2021 data is not yet available for Australia, Chile, Columbia, Mexico, New Zealand and Switzerland, so data for the latest available year is used. EU 27 figures exclude the UK.

Figure 3: Estimated at 1.85%, Scotland’s BERD spend as a share of GDP ranked in the second quartile of the OECD countries in 2021, above the EU average (1.41%) but below the average for the UK (2.01%) and OECD countries (1.99%) in 2021.

BERD as a share of GDP, by country, 2021.

Source: OECD Main Science and Technology Indicators, ONS and Scottish Government. For Figure 3 data see Table 8B.

Note that 2021 data is not yet available for Australia, Chile, Columbia, Mexico, New Zealand and Switzerland, so data for the latest available year is used. EU 27 figures exclude the UK.

Figure 4: In 2021, Scotland ranked top among the OECD countries for HERD spend. In 2021, HERD spend as a share of GDP in Scotland was 0.98% compared to 0.42% in the OECD as a whole.

HERD as a share of GDP, by country, 2021.

Source: OECD Main Science and Technology Indicators, ONS and Scottish Government. For Figure 4 data see Table 8C.

Note that 2021 data is not yet available for Australia, Chile, Columbia, Mexico, New Zealand, Switzerland and United States, so data for the latest available year is used. EU 27 figures exclude the UK.