Last week's poll: Has your R&D been hit by the pandemic?

Based on research with 25 R&D-intensive firms, the report found that R&D activity in UK companies is at immediate risk as the nation comes out of lock-down and said that urgent intervention is required to give the UK the best possible chance of innovating its way out of the recession.

The Academy found that the pandemic has rapidly altered the business environment in which innovative start-ups and R&D-intensive businesses operate.

With R&D often funded through revenue, many companies experiencing cash flow difficulties are liable to halt or significantly reduce their R&D activity, including partnerships with universities and support for studentships.

Professor Sir Jim McDonald - President, Royal Academy of Engineering

Projects said to be at highest risk are those in the middle of the innovation process, from proof-of-concept through to prototype and demonstration stages. These steps are costly and often face technical challenges with the need for extra time to be resolved. Cancelled projects are likely to reduce the benefits of previous R&D investments, cut competitiveness and reduce innovative outputs in the coming years as planned projects fail to reach maturity.