UK witnessing R&D offshoring exodus

In total across 2022 and 2023, 74 per cent of UK businesses are moving activity abroad and at least 63 per cent of businesses have moved activity to EU countries, Ayming’s inaugural UK Innovation Barometer shows.

The US, Germany, and France are the most popular destinations for this offshoring, selected by 28 per cent, 27 per cent, and 13 per cent of businesses respectively.

The life sciences sector has moved the most activity abroad, with 94 per cent of businesses having moved activity overseas in the last year. Over half of life sciences firms have moved activity to Germany.

In a statement, Mark Smith, partner – Innovation Incentives at Ayming UK, said, “Amidst domestic turbulence, the emphasis on innovation has remained a notable constant across several governments. But, if the goal is to become a ‘Science Superpower’, we need to compete with the likes of the US and Germany in attracting R&D activity. If we don’t, UK firms will continue to offshore R&D to where access to capital and talent is easiest, meaning other regions will outgrow the UK as an R&D hub.”