26.11.2025
The UK Department for Science, Innovation and Technology (DSIT) has published its R&D budget allocations for research agencies and bodies up to 2029/30. This is the first multi-year budget since 2022.
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The three-year budget will support investment in high-tech research and development in the UK.
The overall DSIT R&D budget will be £58.5 billion form 2026/27 to 2029/30. The recent announcement allocated £55.4 billion of this, with the remaining £3.1 billion to be allocated later.
DSIT accounts for the majority of the £86 billion the government invests in public R&D, which was confirmed by the Chancellor, Rt Hon Rachel Reeves MP, at the Spending Review earlier this year.
This DSIT funding covers UK Research and Innovation (UKRI); the UK’s contribution to EU programmes such as Horizon and its successor; UK Space Agency; Met Office; Advanced Research & Invention Agency (ARIA); National Academies; Office for Life Sciences; National Measurement System; and AI Security Institute (AISI).
Notably, the budget for ARIA, which was set up in 2022 for high-risk/high-reward research, will more than double in cash terms from £184 million in 2025/26 to £400 million in 2029/30.
A more detailed breakdown of UKRI’s budget, which accounts for nearly two-thirds of the total DSIT budget, will be published in December this year.
DSIT says it is also managing its R&D funding in a more agile way, enabling it to move funding across financial years, reallocate funding and deprioritise or double down on investments.
Its three R&D priorities are:
(1) protecting curiosity-driven, foundational science that transforms our society and economy for generations to come
(2) supporting strategic government and societal priorities
(3) targeting innovative, UK-based companies to scale-up and grow.
DSIT has published analysis showing that every £1 spent on R&D delivers £8 in net economic benefits over the long-term. The full social benefits are even higher, when the significant health, national security, environmental and quality-of-life benefits are accounted for.
The assessment is based on how public R&D boosts productivity, how it stimulates private R&D investment and the benefits that flow from this additional private investment.
DSIT cited research by Oxford Economics that every £1 of public money invested in R&D leveraged a further £2 in private R&D investment in the long run.
In the six years after receiving the first R&D grant funding, employment increases in the average business by 21% and turnover grows by 23% relative to similar firms that did not get support, according to the research.
Stephanie Smith, Deputy Director of Policy at the Russell Group said in a statement that the real-terms increase in R&D funding will enable universities and their partners to continue delivering world-class breakthroughs that improve lives, drive economic growth, and support national renewal:
“Public R&D funding plays a vital role in helping the UK meet its ambitions, from advancing clean energy and healthcare to strengthening public services and boosting productivity. Our institutions are ready to work with government, industry, and communities to ensure this funding delivers maximum benefit for the public and helps deliver on our shared national missions.”
Public R&D funding is often vital to help innovative businesses, including start-ups and university spin-outs, grow and achieve commercial success. Indeed, some of the UK’s most successful high-tech companies have benefited from public R&D support.
Keltie works with many such companies, helping them to develop an effective IP strategy, conduct freedom-to-operate searches, secure patent protection and explore commercialisation opportunities. We have considerable experience in understanding their needs and especially how IP fits into the corporate strategy.
For innovative businesses, IP plays a key role in developing the potential of R&D and ensuring that competitive advantage is not lost. As the DSIT analysis shows, public R&D often also leads to additional private investment in R&D.
Recipients of public R&D funding should therefore carefully consider their IP strategy and identify patenting opportunities in order to reap the full benefits of investment. Please contact us if you would like to discuss this further.
19.08.2025
Setting your IP strategy - Part II: Monetisation of IPBusinesses may be deterred from taking steps to acquire IP rights because of the associated costs; however, when acquired strategically, IP rights can provide a substantial revenue stream. Following on from the first article in this series, the following considers how patents, trade secrets, and more may be monetised in practice, particularly in the field of AI.
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IP and SpaceThe space sector has seen remarkable advancements in recent years, with innovations spanning propulsion systems, life support technologies, advanced navigation, telecommunications, and space farming.
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