R&D domination

According to the 2002 R&D scoreboard of the U.K.'s Department of Trade and Industry, European companies lag their U.S. and Japanese counterparts in R&D intensity. However, looking at individual sectors, the picture is different. In the U.K., pharma and biotech dominate, accounting for 37% of total R&D outlays by R&D-intensive enterprises, while on an international level pharma and biotech spend only 16.3% compared to other R&D intensive spheres.

In terms of R&D intensity, defined by R&D spending as a percentage of sales, the U.K. and its main European competitors are on equal terms. R&D intensity in the pharma and biotech sector is 14.3% in the U.K., compared to 15.3% in France, 12.8% in Germany, and 13.5% in Switzerland. The international average of R&D intensity in pharma and biotech is 13%, according to the study. ...