The United Kingdom has a world-class research system and, in comparison with similar industrialised countries, appears to be 'punching above its weight' in terms of research excellence. However, it could be at a comparative disadvantage in other areas of the research system, particularly in terms of investment.

This study investigates the relationship between spending and research performance through an econometric analysis that aims to understand the consequences of lower levels of investment in research. It also investigates potential nonlinearities in the relationship between spending and performance through a series of case studies.