Companies increase overseas R&D funding

The hunt for top research skills and the attraction of large, fast growing markets is encouraging more companies to invest in overseas research and development (R&D), according to a new report published today by the Economist Intelligence Unit and sponsored by Scottish Development International.

A total of 52% of companies plan to increase their overseas investment in R&D in the next three years, while a further 38% will maintain current spending levels over the same period, according to a global survey of 104 senior executives conducted for the report by the Economist Intelligence Unit.

Business leaders identify China as the top destination for future overseas R&D spending, followed by the USA, India, the UK and Germany - a result that marks the growing attractiveness of key emerging markets as locations for technology innovation.

Top ten countries for overseas R&D spending over next three years % of respondents

1. China 39%

2. US 29%

3. India 28%

4. The UK 24%

5. Germany 19%

6. Brazil 11%

7. Japan 10%

8.= France/Italy 9%

10. Czech Republic 8%