Policy briefing says R&D contributions from the creative industries are unlikely to be “fully captured, understood, or accurately valued” without reforms to data collection.
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A policy briefing from the British Academy has called on the UK government to widen its data collection of research and development (R&D) to include arts-based research.
The report, Understanding SHAPE in R&D: Bridging the evidence gap, says existing R&D statistics fail to recognise the full contribution of SHAPE (social science, humanities and arts for people and the economy) R&D.
It says the omission of SHAPE R&D from data collection means “there is a significant risk that UK policy does not accurately reflect the R&D activities which take place and, therefore, may be less effective than desired in supporting the government’s goal of becoming a ‘science and technology superpower’ by 2030”.
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It adds including SHAPE R&D in the evidence base “may present an opportunity to ensure that policies aimed at stimulating innovation are appropriate for the sectors which have the greatest potential to contribute to the economy, by taking into account the characteristics of a large amount of previously unrecognised R&D.”
“Current statistics on UK R&D often fail to recognise activities which use the insights of the social sciences, humanities and the arts, in particular the role that people play in both R&D and innovation,” said Professor Julia Black, President of the British Academy.
“Broadening R&D data collection should provide a more nuanced evidence base, enabling government to better understand the breadth of R&D activity which takes place, particularly in the service sector and the creative industries, and to identify better methods to support it for the benefit of society, the economy and the environment.”
The British Academy’s policy briefing calls on the Department for Science, Innovation and Technology (DSIT) to take a “clear leadership role” on this issue within government.
It adds the newly formed department, headed by former Culture Secretary Michelle Donelan, should set out an agenda on how to fill R&D gaps in the evidence base.
Valuing arts-based R&D
The briefing says creative sector businesses are likely to undertake disproportionate amounts of SHAPE R&D and therefore their R&D contribution “would not currently be fully captured, understood, or accurately valued”.
R&D work in the creative industries falls outside qualification for the government’s R&D tax relief scheme, which is currently only available for projects in science and technology.
In July, members of the House of Lords argued government should expand eligibility for R&D tax relief to include the creative industries – a suggestion that was recommended in a House of Lords Communications and Digital Committee report earlier this year but rejected by government in its response.
At the time, Arts Minister Lord Parkinson said government’s plans for future R&D relief systems would be shared at the time of a “future fiscal event”.
One the British Academy’s key recommendations is valuing the interplay between STEM (science, technology, engineering and mathematics) and SHAPE perspectives and using people-centric methods for measuring R&D.
The policy briefing says an approach to R&D that recognises and measures human capital in the UK’s R&D ecosystem would provide vital insights for policymakers in DSIT, the Treasury and HMRC.
It suggests further government research be undertaken to “create a more expansive and nuanced understanding of what constitutes an R&D role” to “enable policymakers in DSIT to better understand the key skills required for R&D and how policies across government might support them”.
Susan Guthrie, Director of Science and Emerging Technology at RAND Europe said “understanding the extent and importance of SHAPE R&D to UK business is critical in enabling effective strategic planning in terms of skills needs across a range of policy areas”.
“Given the range and nature of contributions that SHAPE graduates can make to R&D activity across sectors, and the collaborative and interdisciplinary nature of much business R&D, a person-centred approach analysing the role and movement of people and their skills and capabilities may provide a useful lens to analyse this topic.”
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