I would suggest, at least from my own experience there are areas where we are in advance of our transatlantic cousins. Also from my own experience I would sufgest that often our own research offers better value for money than the US research does.
Probably not a meaningful comparison given the divestment of QinetiQ and their increasing commercial activity. Not that they are a particularly commercial organisation, appalling sales and marketing strategy and they still haven't caught up with the pay issues in the outside world.
But the general point is fair, there has been a general reduction in pure basic research funding in preference for more applied research, useful in its own right but the real innovations come from basic research. A bit of a short term approach IMO.
Mind you, dstl is turning into a bit of a rest home for retired Lt Cdrs and Cdrs........
If we don't grasp this soon and get the follow-on marketing right, the Indians and the Choges sure as hell will! That will just leave us with Finance, Shipping/Aviation, Tourism and selling off bits of our green and pleasant land to rich foreigners to make a living from. Remember the '60s and export or die?