The government has promised more R&D. Where will the money come from?

The UK government has ambitious plans to boost research and development. Most funding will come from business - but universities must be at the heart of the strategy

After decades of lobbying, the government has promised to raise UK investment in research and development (R&D) to 2.4% of gross domestic product over the next ten years. Brexit is the big catalyst. The government is using R&D investment to combat stubbornly low productivity and persistent regional inequalities before new economic challenges appear.

Governments have set out vague ambitions before but this time it's more than just talk. An extra 2.3bn per year has already been added to government R&D budgets. The funding system is being restructured, tax incentives are increasing, a review of private sector investment is nearing completion and research and innovation are being woven into both the UK's negotiating position on Brexit and the new industrial strategy. Richard Jones addressed many aspects of the industrial strategy in an earlier post on this blog. Here, I focus on money.