Northern Ireland recorded its highest ever spend on Research and Development (R&D) in 2013 with expenditure rising to £624 million, according to figures from the Department of Enterprise, Trade and Investment.

Spending rose 3 per cent in cash terms from the £645 million recorded in 2012, with total business R&D expenditure rising by 4 per cent or £21 million to £482 million and government spending up 5 per cent or £1 million to £16 million.

Locally-owned companies reported a 16 per cent increase in R&D expenditure to £17 million last year while expenditure by externally-owned firms grew by 1 per cent to £363 million.

Externally-owned groups account for 75 per cent of all business R&D expenditure in the North.

According to the figures, R&D expenditure by SMEs increased by 1 per cent or £1 million to £174 million in 2013 in cash terms. Since 2008 SME R&D expenditure has grown by 64 per cent, the department said.

Northern Ireland businesses’s R&D expenditure has shown the ninth highest annual percentage increase in the UK with a 6 per cent rise in investment from £420 million in 2012 to £443 million in 2013.

“In an increasingly globalised world investment in research and development is essential in boosting economic competitiveness. It has been shown companies who innovate are more productive, employ more staff, and have a greater propensity to export,” said enterprise, trade and investment minister Arlene Foster

“It is also encouraging to see an increase of 16 per cent over the year in the total R&D expenditure for locally-owned companies as well as further growth by our Small and Medium-sized Enterprises. This progress is hugely impressive and we need to celebrate and build on the increasing number of success stories amongst NI based companies in order to showcase excellence in innovation,” she added.