The report, Assessing the economic returns of engineering research and postgraduate training in the UK, has been compiled by the Technopolis group.
It estimates that engineering-related sectors contributed circa £280 billion in gross value added (GVA) in 2011, equivalent to 20% of the UK's total GVA. Engineering-related sectors exported goods and services valued at around £239 billion in 2011, some 48% of the total value of exports for that year.
The report also flags up the importance of engineering research to key sectors including aerospace, pharmaceuticals, software and computing and highlights the fact that sectors with high concentrations of graduate engineers report high levels of innovation activity and productivity.
It concludes that the quality of engineering research carried out in the UK and our world class engineering facilities and businesses attract substantial high-value, high-tech inward investment from around the world.
The review benefited from privileged access to over 500 individual Research Excellence Framework (REF) case studies from around 50 different higher education institutions, which showcase the impact of engineering research in all its forms.
Together, they provide comprehensive evidence of the economic and social impact of UK engineering research over the last 20 years. One third of the case studies refer to increases in productivity and competitiveness, citing research that has led to new processes offering efficiency gains and cost savings.
The Technolpolis report is accompanied by a summary document providing a narrative behind the figures of the full report and highlighting its key findings: Engineering for a successful nation.
Professor Dame Ann Dowling DBE FREng FRS, President of the Royal Academy of Engineering, said: "This report demonstrates the enormous quality and scale of the contribution that engineering research makes to the UK economy.
"UK businesses invest nearly £10 billion a year in engineering research, but the private sector alone cannot create all of the growth initiatives. Technological advances increasingly drive economic growth and increased public investment in engineering research is essential if we wish to keep pace with our global competitors. We must build and nurture strong relationships between industry and the university sector and its unique research capabilities. This kind of collaboration is crucial to developing innovative products and creating new technology-led services."