From 2023, where R&D labour costs for internal R&D personnel in the UK were lower, there is a forecasted gradual upward trend. From 2024 to 2028, costs as a percentage of GDP are projected to increase slightly each year, starting at 0.81% in 2024 and reaching 0.83% by 2028. The growth is modest, with year-on-year changes remaining small. The average annual growth rate (CAGR) over these five years is minimal, indicating stability in R&D labor costs in relation to GDP.
Future trends to watch for:
- - Technological advancements altering workforce needs and potentially changing cost structures.
- - Policy changes impacting R&D funding and labor regulations.
- - The role of AI and automation in possibly reducing or transforming labor costs.
- - Macroeconomic shifts that could affect GDP and consequently the proportion of R&D costs.
