The purpose of this paper is to explore the causes that determine the UK’s civilian research and development (R&D) expenditure to forecast its possible evolution in a post-Brexit scenario.
The authors use the Johansen’s co-integration analysis for time series.
The authors find a co-integration relationship between R&D and variables such as exports, military expenditure, patents, EU GDP per capita and USA GDP per capita. The authors also observed a stagnation in the foreseen R&D expenditure over the next five years.
The authors warned that the results can only be viewed as a glance into the understanding of the complex elements that undergird the UK’s civilian, scientific and technological policy-making. But the authors see them as an interesting starting point for scrutinizing current shortcomings in policy-making, while providing clues for corrective action that would otherwise lead the UK to a structural crisis in its economic performance.
This study constitutes a first attempt to account for the loss of the UK’s innovative influence all over the world.
