Given that the UK is now almost halfway along the 10-year framework to meet the 2014 target for raising R&D investment as a proportion of GDP from 1.9% to 2.5% it has been asked in the House of Lords why  no real progress on moving towards this target has been made. Baroness Sharp describes the R&D tax credit regime as generous but wonders why the private sector has not responded by increasing their share of R&D from 1%.

Academic studies have shown that it usually takes 10 years before the effects of a research and development tax relief regime become noticeable.