Labour-Skills, R and D and Capital Requirements in the International Trade and Investment of the United Kingdom 1968-78

During recent years observers of the UK economic scene have frequently commented on its ‘low level of technology’ and its ‘poor technological performance’. Translated into more specific terms, such observations seem to refer to the level of innovative activity in the UK and/or to its supply of engineers and other skilled-labour, relative to that in other advanced industrialised countries. Admittedly inter-country comparisons of these variables are often difficult, as different countries may use different indicators (and definitions) of innovative activity, have different types of educational qualifications, etc. Nevertheless, recent research does make possible some general comparisons. Pavitt (1981) reports, on the basis of industry-wide data on Research and Development (R and D) and international patenting, that innovative activity in the UK has in recent years been lagging behind that of its international competitors and the observation of Albu (1980) that in the supply of well qualified engineers and technologists the UK compares unfavourably with Japan and West Germany is reinforced by Prais (1981) in a more detailed comparative study of the UK and West Germany. Pending further research, these studies provide tentative evidence of the UK's relatively ‘low level of technology’.