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R&D expenditure in Europe

R&D expenditure in Europe

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In 2004, 1.90 % of GDP (almost EUR 200 billion) was spent on Research & Development (R&D) in the EU-25. The highest R&D intensities, were observed in Sweden (3.74 %), Finland (3.51 %) and Iceland (3.01 %).
In 2004, 1.90 % of GDP (almost EUR 200 billion) was spent on Research & Development (R&D) in the EU-25. The highest R&D intensities, were observed in Sweden (3.74 %), Finland (3.51 %) and Iceland (3.01 %).

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Statistics
in focus
SCIENCE ANDTECHNOLOGY6/2006Author 
Simona FRANK 
Contents
R&D expenditure in Europe
First preliminary data:EU-25 R&D expenditure as a share of GDPstable at 1.9% in 2004
Figure
 
1: R&D intensity (R&D expenditure as a % of GDP) in 2004 andannual average growth rate (AAGR) of the R&D intensity (1999-2004)
SEJPFICZUKFRHRUSCNPLDENLESIS
EU-25
ATITELSITRSKHUDKNOPTRUBEBGIELTLUCYEELVROMT-6-4-2024681012140.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0R&D intensity (%)R&D intensity AAGR1999 - 2004 (%)
Source: Eurostat, OECDR&D intensity: R&D expenditure as a percentage of GDP Exceptions to the reference year 2004: IT, LU, PT, UK, NO, CN, JP and US.Exceptions to the reference period 1999-2004: IT, PT, UK, NO, CN, JP, and US: 1999-2003 LU: 2000-2003;MT: 2002-2004 HR: 2002-2003Eurostat estimation: EU-25. National estimation: DE, AT, SI. Provisional data: DK, FR, NL, EE, EL, CY. Forecast: BE 
Main findings
In 2004, 1.90 % of GDP (almost EUR 200 billion) was spent on Research &Development (R&D) in the EU-25. The highest R&D intensities, above the 2010 targetof 3 % set at the Lisbon Summit in 2000, were observed in Sweden (3.74 %), Finland(3.51 %) and Iceland (3.01 %).EU-25 R&D expenditure grew by 2.7 % per year between 2001 and 2004 in nominalterms.The Business sector was the major source of financing of R&D, providing 54 % of funding, ahead of the Government sector with 35 %.Within the Business sector, Manufacturing is the biggest R&D spending sector, justahead of the Service sector.In the EU-25, the proportion of R&D allocated to applied research is high compared tothe United States, Japan and China in which R&D expenditure is more focused onexperimental development
.
(
 
#
 
Manuscript completed on: 25.01.2006Data extracted on: 8.12.2005ISSN 1609-5995Catalogue number: KS-NS-06-006-EN-
C
  © European Communities, 2006
In 2002, eight European regions recorded an R&D intensity of more than 3 %:Braunschweig in Germany (7.1 %) leads, ahead of Pohjois-Suomi in Finland (4.2 %).
 
 
EU-25 R&D expenditure stable at 1.90
 
%of GDP in 2004
2Statistics in focus
— Science and technology — 6/2006 ———————————————————————————
#
In 2004, 1.90 % of GDP was spent on R&D in the EU-25.This proportion remained stable between 1999 and 2004.At country level, R&D intensity (i.e. R&D expenditure as a% of GDP) increased for the majority of Member Statesbetween 1999 and 2004. Cyprus and Latvia (along withChina) stand out particularly with an annual averagegrowth rate (AAGR) of over 8 %. However their R&Dintensity is far below the levels reached by the leading EU-25 countries, Sweden and Finland.Only three countries combine high R&D intensity level(over 2.2 %) and high AAGR (above 4 %). i.e. Iceland,Denmark and Austria.R&D intensities above the 2010 target of 3 % set by theLisbon Strategy, were observed in Sweden (3.74 %),Finland (3.51 %), Japan (3.15 %) and Iceland (3.01 %).The AAGR for these countries is moderate, less than 2 %between 1999 and 2004, except for Iceland.For Germany, France and the United Kingdom
/
the 3 bigEU-25 Member States in terms of absolute R&Dexpenditure
/
the increase in R&D intensity was modestover the same period. This trend is comparable to other major economies. R&D intensity grew modestly in Japanand even decreased slightly in the US.In the Business enterprise sector (BES), the highest R&Dintensities were recorded in 2004 in the Nordic countries(Table 1). Finland leads with 2.75 %, preceding Sweden(2.46 %), Denmark (1.81 %) and Germany (1.75 %).The R&D intensity in the Business sector in the EU-25 was1.22 % in 2004. Compared to other major economies, EU-25 comes behind Japan (2.36 %) and the US (1.79 %), butis ahead of China (0.82 %).
In nominal terms, EU-25 R&Dexpenditure grew by 2.7
 
% per year between 2001 and 2004
In 2004, nearly EUR 200 billion were spent on R&D in theEU-25 compared to EUR 250 billion in the United States,EUR 120 billion in Japan and EUR 16 billion in China(Table 1).
Table 1: Total R&D expenditure and Business enterprise R&D expenditure in million euro and as a percentage of GDP,2001 - 2004
EU25180 175s188 600s195 042sp1.93s1.92s1.90sp117 066s120 581s125 172sp1.26s1.23s1.22spEU25 BE5 3735 1775 465f2.111.921.93f3 9213 6083 747f1.541.341.32fBE CZ8321 0131 1001.221.261.285016187010.740.770.81CZ DK4 265r4 851r5 112p2.402.59r2.63p2 9343 355r3 516p1.651.79r1.81pDK DE52 00254 53855 100e2.462.522.49e36 33238 02938 800p1.721.761.75DE EE496783p0.730.820.91p162332p0.250.280.36pEE EL841951p967p0.640.62p0.58p278286p285p0.210.19p0.17pGR ES6 2278 2138 9460.921.051.073 2614 4434 8650.480.570.58ES FR32 88734 56935 648p2.202.182.16p20 78221 64622 409p1.391.371.36pFR IE1 3151 610r1 780r1.121.16r1.20r9171 0761 150e0.780.770.77eIE IT13 57214 769:1.111.14:6 8706 9797 501p0.560.540.56pIT CY274146p0.260.350.37p599p0.050.080.08pCY LV3838470.410.380.421413210.150.130.19LV LT911111370.680.680.762723290.200.140.16LT LU:426::1.78::379::1.58:LUHU5486937210.950.950.892202552970.380.350.37HU MT:1112u:0.270.29u:4p4u:0.08p0.10uMT NL8 0908 3768 657p1.811.761.77p4 7124 8044 982p1.051.011.02pNL AT4 3934 975e5 346e2.042.19e2.26e::::::AT PL1 3231 0361 1390.640.560.584742843270.230.150.17PL PT1 0381 020:0.850.78:330338:0.270.26:PT SI341377e418e1.561.54e1.61e197222e249e0.900.90e0.96eSI SK1491691740.640.580.5310193860.430.320.26SK FI4 6195 0055 2533.383.483.513 2843 5283 6842.412.452.46FI SE10 45910 64210 4264.273.983.748 1187 8867 6673.312.952.75SE UK30 25430 092:1.891.88:20 39219 778:1.271.24:UK IS2612742973.082.973.011531421671.811.541.70IS NO3 0373 411:1.601.75:1 8141 960:0.961.00:NO EEA183 473s192 285s199 014sp1.93s1.92s1.90sp119 034s122 683s127 519sp1.25s1.22s1.22spEEA CH6 852::2.57::5 065::1.90::CHBG7189990.470.500.511518230.100.100.12BG HR:292::1.14::114::0.45:HRRO1772032350.390.400.401091181300.240.230.22RO TR1 172::0.72::395::0.24::TRCN14 06316 444:1.071.31:8 49910 256:0.650.82:CN JP143 015119 748:3.073.15:105 36489 783:2.262.36:JP RU4 0254 899r5 4731.181.29r1.172 8293 3533 7800.830.880.81RU US306 786251 577p:2.712.59p:223 900173 366p:1.981.79p:US
20012003Millions of Euroas a % of GDP2001200320042004Business enterprise R&D expenditureMillions of Euroas a % of GDPTotal R&D expenditure200120032004200120032004
Source: Eurostat, OECDExceptions to the reference year 2003: Total sectors and BES: 2000: CH HU - Total sectors - 2003 & 2004: Including expenditures not allocated to R&D unitsEU-25 and EEA: Eurostat estimates LU - Total sectors - 2003: Include 2001 data for HES sector.US: Excludes most or all capital expenditure
 
 
More than 60 % of total R&D expenditure was spent in 3EU countries: Germany (EUR 55 billion), France (EUR 36billion) and the United Kingdom (EUR 30 billion). The totalamount of R&D expenditure for these countries remainedmore or less stable between 2001 and 2004, risingmoderately in nominal terms for Germany and France, lessthan 3 %, while a small decrease was observed in theUnited Kingdom. The biggest increases in nominal termswere observed in Estonia (19 %), Cyprus (18 %), Lithuania(14 %) and Spain (13 %).More than 60 % of total R&D expenditure was spent in 3EU countries: Germany (EUR 55 billion), France (EUR 36billion) and the United Kingdom (EUR 30 billion). The totalamount of R&D expenditure for these countries remainedmore or less stable between 2001 and 2004, risingmoderately in nominal terms for Germany and France, lessthan 3 %, while a small decrease was observed in theUnited Kingdom. The biggest increases in nominal termswere observed in Estonia (19 %), Cyprus (18 %), Lithuania(14 %) and Spain (13 %).In real terms, EU-25 R&D expenditure increased by 1.3 %over the same period; at national level the most importantgrowth rates were observed in Estonia (16%), Cyprus(15%) and Lithuania (12%).In real terms, EU-25 R&D expenditure increased by 1.3 %over the same period; at national level the most importantgrowth rates were observed in Estonia (16%), Cyprus(15%) and Lithuania (12%).Germany, France and the United Kingdom were also thetop R&D investors in the BES, with EUR 39 billion, EUR 22billion and EUR 20 billion respectively. More than 65 % of EU-25 R&D expenditure in the BES took place in these 3countries. Small economies recorded the highest increasesin their R&D expenditure in nominal terms in the BES:Estonia (25 %), Cyprus (21 %), Malta (20 %) and Latvia(15 %).Germany, France and the United Kingdom were also thetop R&D investors in the BES, with EUR 39 billion, EUR 22billion and EUR 20 billion respectively. More than 65 % of EU-25 R&D expenditure in the BES took place in these 3countries. Small economies recorded the highest increasesin their R&D expenditure in nominal terms in the BES:Estonia (25 %), Cyprus (21 %), Malta (20 %) and Latvia(15 %).The weight of the different sources of financing for R&Dremained unchanged in 2004 for the EU-25 compared tothe previous year. The Business sector still contributed thelion’s share with 54 %, but this percentage ranks behindJapan (75 %), the United States (63 %) and China (60 %).The Government sector (GOV) comes in second positionand provided 35 % of the EU-25 R&D funds against 31 %in China and 30 % in the US, but only 18 % in Japan. For all the major economies, the funding from abroad wassmall, less than 2 %, except in the EU-25 were it amountedto 9 % (Table 2).The weight of the different sources of financing for R&Dremained unchanged in 2004 for the EU-25 compared tothe previous year. The Business sector still contributed thelion’s share with 54 %, but this percentage ranks behindJapan (75 %), the United States (63 %) and China (60 %).The Government sector (GOV) comes in second positionand provided 35 % of the EU-25 R&D funds against 31 %in China and 30 % in the US, but only 18 % in Japan. For all the major economies, the funding from abroad wassmall, less than 2 %, except in the EU-25 were it amountedto 9 % (Table 2).The structure of R&D funding is much more diversifiedamong EU-25 countries. The Business sector predominates, but in 11 countries, most of them newMember States, government funding was the major financing source of R&D activity in 2003. BES funding isespecially high in 3 countries, Luxemburg, Finland andGermany, which have already reached the second LisbonSummit target of two thirds of R&D expenditure financed bythe business sector.The structure of R&D funding is much more diversifiedamong EU-25 countries. The Business sector predominates, but in 11 countries, most of them newMember States, government funding was the major financing source of R&D activity in 2003. BES funding isespecially high in 3 countries, Luxemburg, Finland andGermany, which have already reached the second LisbonSummit target of two thirds of R&D expenditure financed bythe business sector.
Table 2: Total R&D expenditure and Business enterprise R&D expenditure (BERD) by sources of funds in 2003,in million EUR and as a percentage of totalTable 2: Total R&D expenditure and Business enterprise R&D expenditure (BERD) by sources of funds in 2003,in million EUR and as a percentage of total
EU25188 600s54s35s2.3s9s81s8s0.0s11s120 581sEU25BE5 17760225.1138250.0133 608BECZ1 01351422581121.65618CZDK4 94461272.7108720.0113 449DKDE54 53866310.329260.1238 029DEEE6733493.3158760.1723EEEL95131473.8188940.18286GRES8 21348405.8683110.254 443ESFR34 56951356.3878110.11021 646FRIE1 62359292.898730.591 076IEIT9 7794351:676140.1106 979ITCY4120606148820109CYLV383346020641602013LVLT11117655145410:3623LTLU426p80p11p08p89p3p08p379pLUHU69331580.4117160.322255HUMT1219600227517083MTNL8 37651371118140154 804NLAT4 975e44e35e021e6460303 131ATPL1 03630632.4583150.31284PLPT1 02032603589505338PTSI377e59e35e1.4e4e93e5e0.1e2e222eSISK16945511375221293SKFI5 00570261.139630.113 528FISE10 64265234.378660.287 886SEUK30 09244315.41963110.02619 778UKIS27444401.5147740.020142ISNO3 41149421.5781100.091 960NOEEA191 907s54s35s2s9s81s8s0.1s10s122 683sEEACH6 852692334912165 065CHBG892767169800118BGHR29242560296203114HRRO20345481.5567280.34118ROTR1 28041517194312367TRCN16 4446030828755310 256CNJP119 748e7518e7e09811089 783JPRU4 89931600.6938520.2103 353RUUS251 577p63p31p6p:90p10p0:173 366pUS
BESTOTAL
Sourcesof fundsSourcesof funds
as a % of totalMillions of Euroas a % of totalMillions of Euro
Total R&D expenditureBusiness enterprise R&D expenditureBESGOVOther nationalsourcesAbroadTOTALAbroadOther nationalsourcesGOV
Source: Eurostat, OECDExceptions to the reference year 2003: All sectors: 2002: MT and TR; 1996: IT BES: 2002: AT, MT and TR. US: Excludes most or all capital expenditureEU-25 and EEA: Eurostat estimates. Other national sources: Higher education sector (HES) and private non profit sector (PNP).
 _______________________________________________ 6/2006 — Science and technology —
Statistics in focus3
 
#"

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