Research and Development performance: how UK companies compare internationally

The biggest 300 United Kingdom companies increased their spending on research and development (R and D) by less than the increase in their sales in 1996, according to the Department of Trade and Industry. There is concern that UK companies are not investing enough in R and D, since such investment contributes to growth and profits. A case study of an Italian company, Candy Elettrodomestici, highlights the UK's low labor costs which may deter investment. UK labor costs are lower than those of Italy, but productivity is also lower.