UK aerospace R&D returns £14 for every £1 invested says ATI

The UK aerospace sector is showing strong signs of continued growth, with its value increasing by $1 billion since 2024, and projections indicating that the market could double in value by 2035.

That is the view of the Aerospace Technology Institute (ATI), which published its latest Impact Report on 26 August. Additionally, sustained investment in research and development (R&D), innovation, skills and advanced manufacturing is helping to support this expansion and strengthen the sector’s international competitiveness, ATI added. The full report can be read here.

The report from ATI highlights the economic contribution of aerospace research and development (R&D) and the wider benefits generated by investment in new technologies.

Analysis by ATI indicates that every £1 invested in aerospace R&D could generate up to £14 in economic output over time, suggesting that the benefits of innovation extend beyond just the aerospace sector to the wider UK economy. During 2025/26, the ATI Programme invested £313 million through joint government and industry funding in aerospace research and technology projects across the UK.

Supported initiatives included work by small and medium-sized enterprises (SMEs) developing advanced manufacturing techniques, artificial intelligence, hydrogen-electric propulsion and technologies aimed at reducing aviation emissions.

ATI brings its total investment to £4.2 billion in 12 years

This latest investment brings total funding through the ATI Programme since its launch in 2014 to more than £4.2 billion. The programme is intended to help develop the technologies, industrial capabilities and supply chains required for UK companies to compete for future global aerospace programmes.

According to the report, these investments are also helping to attract private capital, improve productivity and support businesses of different sizes across the UK’s nations and regions. The regional dimension is particularly significant, as aerospace manufacturing and research provide highly skilled employment and contribute to local industrial economies.

The report also identifies a number of technology and industrial milestones achieved through ATI-backed research. It also points to the programme’s contribution to creating high-value jobs, strengthening productivity and supporting the aviation industry’s transition towards net zero emissions.

According to ATI, the economic case for continued investment in aerospace R&D therefore extends beyond immediate technological development. By helping companies reduce the risks associated with developing new technologies and accelerating their route towards commercialisation, public-private funding can support longer-term industrial investment and competitiveness.

The ATI Programme is delivered through a partnership involving the Aerospace Technology Institute, the Department for Business, Innovation, Science and Trade (BIST), and Innovate UK. Its activities form part of a broader effort to maintain and expand the UK’s position in the global aerospace industry.

With the sector already demonstrating measurable economic growth, the combination of public and private investment, technological innovation and skills development is expected to remain important to the UK aerospace industry.

The scale of funding committed since 2014 also underlines the strategic role attributed to aerospace R&D in supporting economic growth and preparing the industry for future technological and environmental challenges.