The growth of the pharmaceutical industry is heavily dependent on its constant research into new products and the enhancement of those products already on the market. The money spent on research and development (R&D) in the pharmaceutical sector compared to other sectors reflects this. However, the costs for R&D have also risen over time.
Figure 1 – UK pharmaceutical R&D expenditure by type 2000–2011
Expenditure on research and development by the pharmaceutical industry has grown by £800m per year since 2000. During this period R&D capital expenditure has declined by around £400m per year.
Source: ONS UK Business Enterprice Research and Development, 2011
Figure 2 – R&D expenditure in key business sectors
There was more R&D performed in the pharmaceutical sector than any other in 2011, representing 28% of all expenditure on R&D in UK businesses. Other sectors reporting significant R&D expenditure are, for example, aerospace and motor vehicles and parts. The graph below shows the R&D expenditure for a selection of sectors in the UK.
Source: ONS Business Enterprise R&D 2011
Figure 3 – UK R&D expenditure by industry sector, 2002–2011
The graph below shows how the pharmaceutical industry’s R&D expenditure compares to other business sectors. The costs for R&D have also risen over time which accounts for some of the growth profile for R&D investments.
Source: ONS Business Enterprise R&D 2011
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Figure 4 – R&D expenditure: European comparison
The graph below shows how pharmaceutical R&D in the UK compares to other countries in Europe. Expenditure in the UK is greater than other European countries with established domicile pharmaceutical sectors.
Source: EFPIA, The Pharmaceutical Industry in Figures, 2011
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Figure 5 – R&D expenditure: Global comparison
The graph below shows how pharmaceutical R&D in the UK compares to other countries in the world. The US has by far the largest pharmaceutical R&D sector.
Source: National Trade Associations
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Figure 6 – R&D as a percentage of sales in key UK manufacturing industry sectors, 2009–2011
The table below shows the R&D expenditure, and R&D as a percentage of sales (intensity), between 2008 and 2010 for core business sectors in the UK.
|
2009 |
2010 |
2011 |
2009 |
2010 |
2011 |
|---|
| Pharmaceuticals |
4424 |
4681 |
4850 |
36.2 |
34.6 |
38.9 |
|---|
| Aerospace |
1466 |
1437 |
1417 |
7.8 |
8.0 |
7.6 |
|---|
| Electrical equipment |
577 |
513 |
509 |
5.3 |
4.2 |
4.0 |
|---|
| Chemicals |
610 |
666 |
689 |
3.0 |
3.0 |
3.0 |
|---|
| Motor vehicles and parts |
1039 |
1237 |
1525 |
3.9 |
3.4 |
4.0 |
|---|
| Other manufactured goods |
98 |
136 |
147 |
0.6 |
0.9 |
0.9 |
|---|
| Manufacturing total (inc all of the above + all other manufactured goods) |
11230 |
11593 |
12552 |
3.7 |
3.5 |
3.7 |
|---|
Source: ONS Business Enterprise Research and Development, 2011
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