Medical research funded by charities supports more Scottish jobs than major sectors including hospitality, construction, fishing and the financial services, a new report found.
Every £1 million spent generates £1.33 million of Gross Value Added (GVA) for the Scottish economy putting the sector 4th out of 97, behind education, social care and security services.
Scottish charities contributed £122m towards research in 2018, according to research by the Fraser of Allander Institute, enough to support more than 7,400 jobs.
However, with charity expenditure plunging by 44% during the pandemic due to a drop in donations concerns are being raised about future investment levels.
Scotland is considered a world-leader in medical research but trails behind England in terms of funding for the sector and a leading scientist says this could lead to the country also falling behind in medical advances.
According to analysis, the Scottish Government devotes a third less per head of the population into clinical research than Westminster.
The report estimates that without charitable funding government and other public bodies would need to increase direct funding by 73% to make up for the shortfall.
British Heart Foundation Scotland, which commissioned the study, said an extra £37million would be needed to bring the country into line with the UK.
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The charity’s call has been backed by leading scientists from the universities of Glasgow, Edinburgh, Aberdeen, Dundee and St Andrew's.
The BHF currently funds £60 million in research, entirely through public donations, across ten universities in Scotland, supporting around 240 staff.
Professor James Leiper, BHF Associate Medical Director and Professor of Molecular Medicine at the University of Glasgow, said: “In Scotland we have this enormous potential and fantastic track record on medical research but if we don’t boost the amount of money that’s going into the sector in targeted ways, we will fall behind and become less competitive, not just with our colleagues in England and Wales but across Europe.
“In England they have the National Institute for Health Research to support clinical research and careers whereas in Scotland we have a slightly different system.
“If we just look at for example the way we support careers for clinical researchers. We fund about £1.8million a year on fellowships through the Chief Scientific Office, whereas in England and Wales the NHR funds £100million.
“These are the people who are going to make the next series of discoveries of drugs and therapies and diagnostics and we under invest in these people now we are sowing real difficulties for the future.”
Countries including Israel, South Korea, Sweden, and Japan lead the table on government spend on medical research.
Around 60% of charities had to reduce or cancel support for early career and skilled researchers due to funding delays during the pandemic.
The Association of Medical Research Councils (AMRC) warned that the sector may not return to pre-pandemic levels for 4-5 years, leading to potential implications for the further advancement of medical treatments in the UK and Scotland.
Countries including Israel, South Korea, Sweden, and Japan lead the table on government spend on medical research.
Around 60% of charities had to reduce or cancel support for early career and skilled researchers due to funding delays during the pandemic.
The Association of Medical Research Councils (AMRC) warned that the sector may not return to pre-pandemic levels for 4-5 years, leading to potential implications for the further advancement of medical treatments in the UK and Scotland.
Analysis carried out in 2014 found that UK Research Council funding for medical research was heavily biased to the south-east of England.
In contrast, for funding that was allocated by the quality of submitted proposals, Scotland fared above average.
Professor Mairi Spowage, Director at the Fraser of Allander Institute, said: “This report demonstrates the substantial role that charities make to medical research funding in Scotland.
“This funding not only results in advances in healthcare, but also plays a key role in supporting Scotland’s economic growth."
A Scottish Government spokeswoman said: “We welcome the publication of the reports from the British Heart Foundation Scotland and the Fraser of Allander Institute.
“The Scottish Government recognises the work being done by charities to support health research here, and the importance of the Life Sciences sector to the Scottish economy.
"The Chief Scientist Office has recently announced the outcome of the Precision Medicine Alliance Scotland Funding Call, which includes £10 million investment in four NHS-led research projects to tackle health conditions of major importance.
“We will continue to work with health research charities to ensure the recovery and growth of the NHS Scotland clinical trials portfolio, as we emerge from the COVID-19 pandemic.”
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