R&D expenditure by sector

The total amount spent on research and development in the region, including how much was spent by business, higher education, government and non-profit organisations

In 2018, expenditure on research and development (R&D) in the North East region was £780 million, 2.1 per cent of the UK total. This included:

  • £443 million of R&D being undertaken by businesses, 1.8 per cent of the UK total
  • £250 million of R&D being undertaken by higher education institutions, 2.9 per cent of the UK total
  • £87 million of R&D being undertaken by government or private, non-profit organisations, 2.6 per cent of the UK total

Regions such as the North East are the smallest geographical areas for which this data is available. The North East region includes the North East and Tees Valley LEP areas. In 2018 there were no North East estimates of expenditure on R&D sourced by Government and by private, non-profit organisations so the combined total has been calculated.

Between 2014 and 2018, expenditure on R&D in the North East region increased by £230 million or 42 per cent. The latter was almost twice the UK percentage increase (22 per cent). North East business expenditure increased by £161 million during this period but higher education expenditure in the region was virtually unchanged. Expenditure by government or non-profit organisations was £67 million higher in 2018 than 2014, including a large increase between 2014 and 2015.

The North East region's expenditure on R&D in 2018 was equivalent to 1.43 per cent of total GVA, a smaller percentage than for the UK as a whole (1.94 per cent). This was the third lowest percentage among the nine English regions and less than half that of the region with the highest (East of England, 4.01 per cent). Since 2014 the North East figure has increased by 0.31 percentage points, closing the gap slightly on the UK equivalent (up 0.12 percentage points).

Total expenditure on R&D in the North East region was equivalent to £35.7 million per 100,000 adults in 2018, which was just under 52 per cent of the UK equivalent (£68.9 million per 100,000 adults). The gap has closed since 2014, when the North East regional rate was about 44 per cent of UK's.  The region's R&D expenditure per capita rates for business, higher education and government / private non-profit are all below the national equivalents, at, respectively, 44, 71 and 65 per cent of the UK rates. Although still less than half the national rate, the North East business expenditure per capita rate has grown faster than nationally in recent years. It had been only 34 per cent of the UK equivalent in 2014.

R&D expenditure by sector over time, North East region

Last updated:
17/02/2021
Published by:
North East LEP

Sources:  Gross domestic expenditure on research and development, UK (ONS; last updated Apr 2020)

Data information: Estimates of Government and private non-profit R&D expenditure for the North East region were not published in 2014, 2017 and 2018. Instead, there were combined estimates for the North East and North West regions. Estimates of combined R&D spend in the North East by Government and private non-profit organisations have been calculated for these and other years. Note: the North East region includes the North East and Tees Valley LEP areas.


R&D expenditure as a percentage of GVA, UK nations and English regions

Last updated:
18/02/2021
Published by:
North East LEP

Sources:  Gross domestic expenditure on research and development, UK (ONS; last updated Apr 2020)

Regional economic activity by gross domestic product (ONS; last updated Dec 2019)

Data information: Based on UK nations and English regions - the North East region includes the North East and Tees Valley LEP areas.


R&D expenditure as a percentage of GVA over time, North East region and UK

Last updated:
05/02/2021
Published by:
North East LEP

Sources:  Gross domestic expenditure on research and development, UK (ONS; last updated Apr 2020)

Regional economic activity by gross domestic product (ONS; last updated Dec 2019)

Data information: Based on North East region, which includes the North East and Tees Valley LEP areas.


R&D expenditure per adult over time by sector, North East region (as a % of UK)

Last updated:
18/02/2021
Published by:
North East LEP

Sources:  Gross domestic expenditure on research and development, UK (ONS; last updated Apr 2020)

Mid-year population estimates (ONS; last updated Jun 2020)

Data information: Estimates of Government and private non-profit R&D expenditure for the North East region were not published in 2014, 2017 and 2018. Instead, there were combined estimates for the North East and North West regions. Estimates of combined R&D spend in the North East by Government and private non-profit organisations could be calculated for these years. Note: the North East region includes the North East and Tees Valley LEP areas.