Letter: R&D starved

Roberta Nichols
Tuesday 29 June 1999 23:02 BST
Comments

Your support helps us to tell the story

From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.

At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.

The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.

Your support makes all the difference.

Sir: John Battle, the minister for energy and industry, wants to know why a significant proportion of UK companies appear to place less emphasis on R&D than their international competitors ("UK companies lag behind in R&D spending", 25 June).

The answer is simple. UK shareholders insist on a high return on their investments and therefore money which should be going on R&D has to be used to "satisfy shareholder expectations".

Just who are these shareholders and why are they so short-sighted? Forget the cartoon figure of the bloated plutocrat complete with enormous cigar - the shareholders in question are you and me, through our pension funds, PEPs, Tessas, ISAs, and other savings accounts.

Fund managers have a duty to obtain the best return on their investments in order that our pensions can be paid in full and our savings can grow. The real question is: why do the fund managers fail to see that more investment in R&D might mean a little less dividend now but ensure a better future for UK technology and industry?

ROBERTA NICHOLS

Abingdon, Oxfordshire

Join our commenting forum

Join thought-provoking conversations, follow other Independent readers and see their replies

Comments

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in