EG7036 Business Procurement and Contractual Practice Assignment Help
Introduction
The construction industry has a significant contribution in most countries and the UK construction industry is also not an exception. The UK construction sector contributes almost 10% to its GDP and employs around 1.5 million people (Kuragu et al. 2016). Currently, the requirements regarding construction and buildings related to service are continuously changing for meeting dynamic social demands, and demographic changes as well as reducing environmental impacts (Selviaridis, 2021). The Indian construction industry is valued at INR 701.7 billion during the year 2022 and is achieved a growth of 6% from the year 2024 to 2027 (Global data, 2023). India spends 0.6% of its GDP on the procurement of the construction industry whereas in comparison the UK spends GBP 471 million on its R&D procurement in the construction industry (Theconstructionindex, 2023). Expenditure spends on R&D on procurement in the construction industry of India and the UK help in growing the overall productivity and performance of the organisation. For this reason, this study is focused on highlighting the impact of R&D investment on procurement of the UK construction sector.
Summary
The UK construction sector is perceived to have a low level of innovation and R&D expenditure in comparison to other sectors. However, in comparison with various other construction industries worldwide, the UK construction sector lags behind global leaders regarding profitability, productivity, and investment of capital in the research and development process. In 2011 the R&D expenditure within the UK construction sector was around £22 million (Service.gov.uk, 2013). The construction sector in India is perceived to be a low level of innovation and R&D which makes it difficult for the construction sector to grow their overall productivity and maintain efficiency. R&D expenditure in the UK constriction during the year 2021 was GBP 471 million in the year 2021 (Construction news, 2023). Whereas, R&D expenditure in India during the year 2021 grew up by 0.7% which is very low in comparison to that of other countries (Thehindu, 2023). Lack of investment in construction R&D and decreasing support from the management makes it difficult to maintain effectiveness and productivity.
Conclusion
The study has discussed various factors related to the impact of research and development (R&D) expenditure in response to the procurement of the construction sector in the UK and India. The study has discussed that the UK and Indian construction sector has faced significant challenges over the past decade because of research and development programmes and a lack of investment in research and development on the procurement of the UK-based construction sector. The study has defined that the UK and Indian construction sectors must Paradise for creating long-term research and development programs and increasing investment for the growth of the construction industry as it significantly contributes to the GDP and creates employment opportunities for the people. The study has also highlighted the lack of investment in the construction R&D process that has made it difficult to maintain competitiveness and contribute to the growth of the construction sector in the UK and India. Developing the R&D process also helps the constriction firms in growing their competitiveness and maintaining efficiency. Because of this low level of expenditure, the UK and Indian construction sector have gone through several challenges in the adoption of technology and driving competitive advantage.
References
Constructionnews, 2023. Construction-rd-spending-soars-during-pandemic. [Online]
Available at: https://www.constructionnews.co.uk/financial/construction-rd-spending-soars-during-pandemic-24-11-2021/ [Accessed 8 May 2023].
Globaldata,2023.Indiaconstructionmarketanalysis.[Online]Availableat:https://www.globaldata.com/store/report/india-construction-market-analysis/[Accessed 8 May 2023].
Kulatunga, U., Amaratunga, D. and Haigh, R., 2006. The role of research and development in achieving excellence in construction.
Selviaridis, K., 2021. Effects of public procurement of R&D on the innovation process: evidence from the UK small business research initiative. Journal of Public Procurement, 21(3), pp.229-259.
Theconstructionindex,2023.Construction-rd-investment-hits-new-height.[Online] Available at: https://www.theconstructionindex.co.uk/news/view/construction-rd-investment-hits-new-heights[Accessed 8 May 2023].
Thehindu,2023.Indias-rd-estimates-are-an-incomplete-picture.[Online]Availableat: https://www.thehindu.com/opinion/op-ed/indias-rd-estimates-are-an-incomplete-picture/article66545931.ece#:~:text=India’s%20research%20and%20development%20(R%26D,R%26D%20by%20the%20corporate%20sector.[Accessed 8 May 2023].
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