Business and R&D in the Arts, Humanities and Social Sciences

The research on which this briefing is based starts from two premises. First, the government has made strong commitments to increasing investment in research and development (R&D) as a way to addressing the economic, social and global challenges of today and tomorrow. It is unquestionable that investments in research and innovation have made innumerable improvements and contributions to lives and livelihoods. These benefits are a result of research and innovation insights from all disciplines, but this broad-based contribution does not translate into policymakers’ R&D definitions, nor does it sit well with R&D statistics. In particular, the model by which governments understand R&D is structured toward STEM-based research activities and so does not map effectively on to knowledge creation in the arts, humanities and social sciences (AHSS) . There is a risk therefore of a “gulf” between how R&D happens and the policies that support it. Second, the Government has a target of investing 2.4% of GDP in R&D by 2027, with the aim of boosting the UK’s innovation performance, increasing to 3% thereafter. The UK economy is 80% service based. This contains within it fast growing, internationally competitive sectors like the creative industries. Understanding and measuring R&D in the services sector in particular, with its origins in AHSS disciplines may have vital significance for the 3% target, and for the direction of policies to promote innovation and economic growth. Based on these two starting points, we hypothesise that without the right definitions and tools to measure R&D, and effective policies in place to support it, the Government risks ignoring the full value of R&D in the UK economy, and missing out on incentivising investment in innovation in AHSS-related sectors and activities. Rectifying this could lead to a host of benefits for the UK economy, society, and productivity in the broadest sense.