4. Statement by the Minister for Economy: Developing Technological Clusters in Wales — Medical radioisotope production and nuclear medicine expertise

Part of the debate – in the Senedd at 4:13 pm on 10 January 2023.

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Photo of Luke Fletcher Luke Fletcher Plaid Cymru 4:13, 10 January 2023

We agree that harnessing science research and innovation to address societal challenges is important, as is improving investment in science, technology, engineering and mathematics and research and development, which will have huge benefits for the Welsh economy, and we must continue developing our manufacturing and exporting in these areas. Of course, we support the ambition of establishing new technological clusters across Wales. However, if we really wish to boost Wales's technology research and design, manufacturing and exporting sectors, we have to have a strong research, development and innovation base, but Wales has had historically low levels of R&D for decades.

The British Heart Foundation found that, in 2019, total expenditure on R&D in Wales was £794 million, or 1.2 per cent of gross value added. Out of the three devolved nations of the UK and each of the nine regions of England, Wales has the lowest R&D expenditure as a proportion of GVA. They also found that 82 per cent of people believe it's important for Wales to be undertaking medical research, and 34 per cent of people think not enough research is currently happening in Wales.

Neither the UK Government's continued stalemate on Horizon association and the cut that is coming via the UK shared prosperity fund will help this funding situation in Wales, of course. However, the UK Government added funding to research in England to help with the Horizon stalemate and this meant a Barnett consequential. I asked you, Minister, in December to confirm the Barnett amount and asked whether it would be added to university research, but you declined to commit to the consequential being passed on. It is fair for the Welsh Government to criticise the Horizon stalemate, the shared prosperity fund and the damage caused, but it is questionable to then not allocate the Barnett consequential from the interim funding.

To see the full effect of programmes like the tech clusters and the Welsh Government's export plan, we must do everything we can to support our research base here in Wales. Scotland confirmed its amount and passed it on shortly after I asked this question to you in December, which meant an extra £24.6 million for Scottish research. Will you follow suit? If you were to make that call, that would go some way in making our universities more competitive. Quality-related research funding in Wales should be at £100 million; there's a shortfall of £18 million. At the very least, will you commit to uplifting QR funding by £18 million by the end of this Senedd term?