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ABPI - The Association of the British Pharmaceutical Industry
 
Facts & Statistics from the pharmaceutical industry

Research and Development

Research and development lies at the heart of the pharmaceutical industry. It invests 30 per cent of its sales in research, and a quarter of the entire research expenditure by the UK manufacturing sector is funded or carried out by the pharmaceutical sector. Research and development expenditure by the pharmaceutical industry in Britain amounts to nearly £4 billion, or more than £10 million a day.

 
14. Pharmaceutical R&D expenditure in the UK
Pharma R&D expenditure £ million Pharma R&D as a % of output1 Pharma R&D as a % of all industry R&D2
1972 42 7 5
1985 546 14 12
1990 1,140 17 14
1991 1,239 17 15
1992 1,420 17 17
1993 1,707 21 19
1994 1,820 20 21
1995 1,813 18 20
1996 1,852 19 20
1997 2,151 20 23
1998 2,238 21 22
1999 2,535 21 22
2000 2,846 23 25
2001 3,030 21 25
2002 3,159 20 25
2003 3,132 20 25
2004 3,239 21 25
2005 3,379 22 25
2006 3,949 26 28
2007 4,465 28
Notes
1 Pharmaceutical industry gross output, from 1996, turnover figures
2 Total UK manufacturing industry R&D spending
Source
Research and Development in UK Business (ONS)
Annual Census of Production (ONS)
 
15. R&D as a percentage of sales in some UK manufacturing industry sectors
1991 1995 2000 2001 2002 2003 2004 2005
Pharmaceuticals 15.8 28.0 35.9 35.0 36.1 31.4 33.8 33.3
Aerospace 8.5 11.3 8.5 10.7 11.8 14.1 17 22.2
Electrical Machinery 3.9 3.6 3.8 4.1 4.8 4.0 4.3 4.2
Chemicals 2.9 2.5 2.6 2.0 2.4 2.6 2.6 2.6
Motor Vehicles 2.5 2.5 3.2 8.4 2.9 2.6 2.3 2
Other Manufacturing 0.4 0.5 0.6 0.6 0.5 0.7 0.4 0.4
Notes
Refers to R&D conducted within UK businesses, not UK companies' total expenditure and sales
From 1993, a new method of measuring sales (PRODCOM) was used, introducing a discontinuity in the series
Source
Science, Engineering & Technology Statistics, (DTI)

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