ABSTRACT
There has been a remarkable growth in the knowledge and information intensification of the global economy, particularly centred on the advanced industrial nations of the world. In turn, research and technological innovation is seen as a key factor in maintaining international competitiveness through strengthening long-term economic growth prospects. This growth in knowledge and information intensification is reflected in the substantial increases in Research and Development (R&D) spending during the 1980s. For the OECD area as a whole Gross Expenditure on Research and Development (GERD) grew by no less than 6 per cent in real terms between 1981 and 1985. However the UK was very much an exception to this pattern having the lowest annual compound real growth of all OECD countries at just 1.6 per cent over the same period (OECD, 1989).
