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The contribution from overseas sources grew the most during this period, climbing from ?293?million in 1995 to ?923?million in 2011, with much of that expansion attributable to increases in funding from the European Commission. Research backing from UK businesses rose by just 17?per cent, from ?242?million to ?284?million.

According to NAO?Memorandum: Research and Development Funding for Science and Technology, published on 10 July, between 1995 and 2011, the overall annual spending on R&D in the UK grew in real terms by 37?per cent to just under ??billion.

Over this period, the government progressively reduced the amount it spent on undertaking R&D itself through public research institutions (through bodies associated with government departments and the research councils) but at the same time increased R&D funding for UK businesses and universities.

Notes: Size of cogs is proportionate to funding. Overseas includes international business, private non-profit, international organisations and the European Commission. 1995 figures given in 2011 prices.

Source: NAO Memorandum: Research and Development Funding for Science and Technology, National Audit Office

elizabeth.gibney@tsleducation.com