THIS week’s Free exchange print article—Arrested development—looks at the global research and development (R&D) race. The big trend it picks out is a shift from government funded R&D to private R&D; we can expect fewer space rockets and more hybrid cars in the future. Overall, this secular shift was pretty successful in the America: private firms have upped their innovation efforts, so that there are lots of businesses (there is a list here) that will soon spend over $10 billion on R&D each year. Contrast this with barren Britain, where ideas are in danger of running dry (see chart).

There are three explanations. One is tax: Britain was very slow to spot the need to spur R&D by giving firms tax breaks. Another is that merger waves (see Surf’s up) may be blunting firms' urge to compete with R&D rivals. A final explanation is that short-termism means R&D is cut so that dividends don’t have to be. Whatever the reason, if you think R&D drives growth and creates good jobs the outlook is pretty depressing, especially for Britain.