Research spending can boost productivity and economic growth, but despite R&D hitting its highest level since 1990 the UK is still struggling to produce stronger growth rates
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Salvation could be on the horizon for Britain’s stagnant living standards as investment in innovation is at its highest level in almost 30 years.
Workers need to churn out more for every hour worked if wages are to rise significantly, but since the financial crisis productivity has barely budged.
So far there is little sign of the additional investment leading to extra output, but officials hope it can generate cutting- edge technologies for the future, turning around the miserable performance of recent years.
R&D spending amounted to 1.15pc of GDP in 2017, the Bank of England found – the highest since 1990.
It is up from a low of less than 1pc between 2003 and 2006.
Yet productivity growth has…