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Redistribute R&D wealth to Wales

On Friday, I attended a conference at Aston University - where I completed my Ph.D - to establish a new academic network (UNITE) on the whole area of university-industry linkages. In particular, this symposium examined the importance of this phenomenon for each of the four regions of the UK.

For the two smallest regions - Wales and Northern Ireland - it was noted that much remains to be done in boosting research and development and ensuring that the millions spent on university research is translated into increased wealth and prosperity in the economy.

For example, the latest statistics show that less than two per cent of UK business research and development is carried out in Wales and whilst this situation has improved during the last few years, we need to encourage more Welsh companies to engage in research activities as well as continuing to attract high value-added business projects that spend a higher than average proportion of their turnover on R&D in Wales.

To this extent, I strongly believe that the Assembly as a political body should be examining, under the new legislative powers proposed, how it can offer specific incentives to get more companies to spend R&D within Wales.

Whilst the Chancellor has increased the level of tax breaks for companies to undertake R&D, this applies across the whole of the UK and does not help any of the more deprived regions in catching up with the more prosperous parts of the nation, especially as over half of the business R&D is carried out in two of the richest English regions.

Encouraging the 'right' type of innovative business to develop and thrive in Wales depends mainly on the research base already here, especially within our universities. It is not a coincidence that the East of England region (which only has one major academic institution - the University of Cambridge - within its boundaries) generates over a quarter of all business R&D within the UK.

However, another key factor in the development of a strong knowledge based economy is the £2 billion that Government itself spends on R&D annually, although only 2% of this is spent in Wales. In contrast, three regions - London, the South East and the East of England - account for nearly 60% of all government expenditure in this area.

In my opinion, it cannot be right that the most prosperous areas of the UK are benefiting from what is essentially a form of government grant. If the Secretary of State for Wales can encourage various civil service functions to be moved out of London into Wales, then there is no reason why he cannot use his astute political and persuasive skills to ensure that a large proportion of the £1.1 billion spent annually by the UK Government within its three richest regions is redistributed elsewhere, preferably to Wales.

In Wales, whilst academia is fighting its corner and slowly coming up to the UK average, both business and government R&D are woefully below what should be expected within our region. Urgent steps need to be taken by our politicians - at Cardiff Bay and Westminster - to ensure that increased investment is generated within these sectors. Without such increased investment, Wales will find it difficult to transform itself into the knowledge base economy that is vital for our future prosperity.

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