Funding Scheme to Support R&D for Large Companies in Scotland

In order to provide further incentives for crucial research and development (R&D) and to encourage more industries to carry out R&D in Scotland, Scottish Enterprise, the economic development agency for Scotland has launched a new funding scheme.

R&D PLUS offers a tax credit of up to 25 percent of eligible program costs for large companies meeting specific criteria. The companies must be able to demonstrate the economic rationale for assistance includes long-term capacity building and sustainability to improve a company’s competitiveness through R&D, according to the Scottish Enterprise. The Enterprise cited figures from the Scottish government, which reported that expenditure on R&D in Scotland increased by 62 percent in real terms between 1995-2001.

According to a recent report comparing Scottish R&D expenditure and employment to the United Kingdom (UK), Scotland’s expenditure in R&D has continued to grow, particularly in business R&D. The report, Business Enterprise Research and Development in Scotland 2002, shows that R&D spending has risen to 4.9 percent of the UK total in 2002, up from 4.2 percent in 2001. Also, Scottish expenditure has increased by 95 percent over 1997-2002. Pharmaceutical R&D in particular has grown strongly over the past five years, according to the report, and accounts for one-third of all business R&D.

In response to the report’s findings, Enterprise Minister Jim Wallace, said business spending is still low relative to major competitors although the gap is narrowing. Although R&D spending is strong in pharmaceuticals and electronics, he said, Scotland is much weaker in aerospace and service products. Wallace added he would like to see R&D spending spread more widely across the Scottish economy.

More information on R&D PLUS is available at http://www.scottishdevelopmentinternational.com. Business Enterprise Research and Development in Scotland 2002 is available from the Scottish Executive (government) at: http://www.scotland.gov.uk/library5/enterprise/berd02-00.asp