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European Biopharmaceutical Review

Why R&D Matters

In his most recent Budget, the Chancellor announced the R&D tax credit for larger companies, complementing the R&D tax credit for small and medium-sized companies introduced in Budget 2000. Together the two credits will represent £500 million a year in additional Government support for business R&D investment in the UK. This level of commitment reflects the Government's determination to increase the level of R&D investment by UK industry. As Figure 1 shows, business R&D intensity in the UK does not fare well with comparable economies.Figure 1 shows the overall average business R&D intensity in the UK, but the picture varies from sector to sector. At 14.8 per cent of sales (1), R&D investment by the UK pharmaceutical industry is competitive by international standards - although recent years have seen a trend for UK-owned groups to undertake an increasing proportion of their R&D outside the UK, and we estimate a decline in the UK share of worldwide pharmaceutical R&D from 11 per cent to 9 per cent (2).


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By Dawn Primarolo MP, Paymaster General for HM Treasury

Dawn Primarolo MP was appointed Paymaster General on 4th January 1999. She has overall responsibility for Inland Revenue and Customs and Excise duties and taxes, and for HM Treasury.
Member of Parliament for Bristol South since 1987, Dawn was educated at Thomas Bennet Comprehensive in Crawley, Bristol Poly and Bristol University. Before entering Parliament, she was member of Avon County Council from 1985 to 1987.
In Opposition, Ms Primarolo was Front Bench Spokesperson on health from 1992 to 1994, and Treasury affairs between 1994 and 1997. She was appointed Financial Secretary to the Treasury on 4th May 1997.

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Dawn Primarolo MP
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