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R&D expenditure and personnel - R&D intensity in the EU-25 unchanged at 1.85% in 2005 compared to 2004, but China making rapid progress

R&D expenditure and personnel - R&D intensity in the EU-25 unchanged at 1.85% in 2005 compared to 2004, but China making rapid progress

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In 2005 R&D intensity (i.e. R&D expenditure as a % of GDP) in the European Union stabilised at 1.85%. In 2005 however, EUR 200.6 billion in nominal terms were spent on R&D in the EU-25.
In 2005 R&D intensity (i.e. R&D expenditure as a % of GDP) in the European Union stabilised at 1.85%. In 2005 however, EUR 200.6 billion in nominal terms were spent on R&D in the EU-25.

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Statistics
in focus
SCIENCE ANDTECHNOLOGY23/2007Author
August GÖTZFRIED 
Contents
Main findings.............................1
 
At EU level R&D intensity isstable but expenditure isincreasing in volume................2
 
In the EU, 55% of R&Dexpenditure was funded by theBES in 2005...............................3
 
Researchers accounted foralmost 1 % of total employmentin the EU in 2004.......................4
 
In 2004, R&D personnel in FTEin the EU-25 numbered about2 millions...................................5
 
Between 2002 and 2004, therewere 3% more EU researchersper year on average..................6
 
R&D expenditure andpersonnel
R&D intensity in the EU-25 unchanged at 1.85% in2005 compared to 2004, but China making rapidprogress
Figure 1: R&D intensity (R&D expenditure as a % of GDP), all sectors,EU-25, NMS10, China, Japan, Russia and the United States — 1994 to 2005
NOTES
Eurostat estimations: EU-25 and NMS10JP 1994-1995: Overestimated dataProvisional data: US 2003 and 2004CN 1994-1999: underestimated dataUS 1993 - 2004: Excludes most or all capital expenditureBreak in series: JP 1996, US 1998, CN 2000
Source: Eurostat/R&D statistics -OECD - MSTI 2006/1
2.792.922.822.893.023.043.053.133.183.203.182.422.512.552.582.622.662.742.762.652.682.681.821.771.801.801.861.871.881.891.881.851.850.640.570.570.640.650.840.850.971.040.951.001.051.181.251.280.780.770.790.820.761.130.950.901.071.231.341.161.070.770.770.780.77
0.00.51.01.52.02.53.03.51994199519961997199819992000200120022003200420052006% of GDP
'
US
EU-25CNNMS10RU
JP
 
Main findings
 
In 2005 R&D intensity (i.e. R&D expenditure as a % of GDP) in the EuropeanUnion stabilised at 1.85%.
 
In 2005 however, EUR 200.6 billion in nominal terms were spent on R&D in theEU-25, an increase of 3.6 % over the previous year.
 
At national level, only two countries reached R&D intensities above the 2010target of 3 % set by the Lisbon Strategy, namely Sweden (3.86 %) and Finland(3.48 %). China has made rapid progress, achieving an R&D intensity of 1.34 % in2005.
 
In the business enterprise sector (BES) the highest values in 2005 were recordedby Sweden (2.92 %), ahead of Finland (2.46 %), Germany (1.76 %) and Denmark(1.67 %).
 
The business sector accounts for more than half of R&D expenditure, with anaverage of 55%. The situation at national level reveals a more diverse picture,with Luxembourg (80%), Japan (75 %), Switzerland, (70 %) and Finland (69 %) allachieving higher percentages.
 
In 2004 more than 2% of all persons employed were active as researchers inSwitzerland (4.4 %), Iceland (2.3 %) and Finland (2.2 %).
(
 
#
 
Manuscript completed on: 21.02.2007Data extracted on: 11.10.2006ISSN 1977-0316Catalogue number: KS-SF-07-023-EN-C © European Communities, 2007
 
 2Statistics in focus — Science and technology 23/2007 _______________________________________________  
#
 
In 2005, R&D intensity (i.e. R&D expenditure as a % ofGDP) in the EU stabilised at 1.85%, following the slightdecrease observed in 2004. A similar slowdown was seen inthe United States and Japan, leaving the gap between thethree major economies in terms of R&D intensityunchanged. By contrast R&D intensity increased in the newMember States (NMS10) who joined in May 2004 and Chinaby 0.03 and 0.11 percentage points respectively. In 2005,China confirmed the steep increase which had enabled it todouble its R&D
 
ratio in less than a decade. For NMS10, theincrease in R&D expenditure as a share of GDP is the firstincrease recorded in the last 10 years (Figure 1).
At EU level R&D intensity is stable but expenditure is increasing in volume
At the level of individual EU Member States, only Sweden(3.86 %) and Finland (3.48 %) achieved R&D intensitiesabove the 2010 target of 3 % set by the Lisbon Strategy.Sweden is still at the top of the league, far ahead of othercountries, even though its figures are slowly falling. Forinstance, more than 1.3 percentage points separatedGermany, ranked in third position, from Sweden and only sixcountries had R&D intensities above 2 %. Among thosecountries Austria (2.36 %), Finland (3.48 %) and Germany(2.51 %) recorded positive trends in R&D intensity (Table 2).Significant increases in R&D intensity were also observedfor the Czech Republic and Latvia (more than + 0.15percentage points).In the business enterprise sector (BES), the highest valuesin 2005 were recorded by Sweden (with 2.92 %), ahead ofFinland (2.46 %), Germany (1.76 %) and Denmark (1.67 %).For these countries there were only slight changescompared to the previous year. The biggest percentagepoint increases were in the Czech Republic (+ 0.12 %),Austria (+ 0.09 %) and Estonia (+ 0.08 %).
Table 2: R&D expenditure in million euro and as a percentage of GDP, all sectors and business enterprise sector,EU-27, EU-25 and selected countries — 2002 to 2005
EU-27
185 878s187 708s193 984s201 020s1.88s1.87s1.84s1.84s119 083s119 669s123 582128 091s1.21s1.19s1.17s1.17s
EU-25
185 613s187 416s193 650s200 633s1.89s1.88s1.85s1.85s118 957s119 533s123 428s127 913s1.21s1.20s1.18s1.18s
BE
5 2015 1775 350p5 428p1.941.891.85p1.82p3 6623 6083 714p3 705p1.371.311.28p1.24p
BG
8189991060.490.500.510.50151824230.090.100.120.11 
CZ
9591 0131 1001 4171.201.251.261.425866187019140.730.760.800.92 
DK
4 6344 8554 899p5 097p2.512.562.48p2.44p3 1983 3553 3323 481p1.731.771.691.67p
DE
53 36454 53955 21556 356e2.492.522.502.51e36 95038 02938 61139 406e1.721.761.751.76e
EE
566783104p0.720.790.880.94p17233247p0.220.270.340.42p
IE
1 436e1 607e1 780p2 020ep1.10e1.16e1.21p1.25ep988e1 0761 150p1 320ep0.76e0.770.78p0.82ep
EL
:9781 021p1 112p:0.630.61p0.61p287313317p326p0.200.200.19p0.18p
ES
7 1948 2138 94610 100ep0.991.051.061.12ep3 926b4 4434 8655 491ep0.54b0.570.580.61ep
FR
34 52734 56935 53436 396p2.232.172.142.13p21 83921 64622 21022 543p1.411.361.341.32p
IT
14 60014 76915 253:1.131.111.10:7 0576 9797 2937 806p0.540.520.530.55p
CY
34414754p0.300.350.370.40p791012p0.060.070.080.09p
LV
423847730.420.380.420.57171321300.170.130.190.23 
LT
1001111371570.660.670.760.76172329320.110.140.160.16 
LU
:426448458p:1.661.661.56p:379393395p:1.481.461.34p
HU
706i693i721i838i1.00i0.93i0.88i0.94i2502552973620.350.340.360.41 
MT
121128b27p0.260.260.63b0.61p3419b19p0.070.080.45b0.42p
NL
8 0198 3768 723p:1.721.761.78p:4 5434 8045 0395 148p0.981.011.031.02p
AT
4 6844 998e5 2505 784ep2.122.21e2.232.36ep3 131:3 5563 919ep1.42:1.51 1.60ep
PL
1 1721 0361 1391 3860.560.540.560.572382843274400.110.150.160.18 
PT
1 029e1 0201 104ep1 189p0.76e0.740.77ep0.81p334e338384ep430p0.25e0.250.27ep0.29p
RO
184203235:0.380.390.39:111118130:0.230.220.21:
SI
360328379338i1.521.321.451.22i215209254241p0.910.840.970.87p
SK
1481691741940.570.580.510.51959386970.370.320.250.25 
FI
4 8305 0055 2535 4743.363.433.463.483 3753 5283 6833 8772.342.422.422.46 
SE
:10 642i:11 109:3.95i:3.86:7 886i:8 410:2.93i:2.92 
UK
30 49628 65829 956:1.831.791.73:19 83018 31918 883:1.191.141.09:
IS
280e274297:2.99e2.862.83:160e142167:1.71e1.481.59:
NO
3 3883 4113 3173 599p1.671.731.621.51p1 9461 9601 8211 944p0.960.990.890.82p
EEA28
189 281s191 101s197 259s204 574s1.89s1.88s1.85s1.84s121 063s121 635s125 404s130 034s1.21s1.20s1.18s1.17 s
CH
::8 486:::2.93:::6 257:::2.16:
HR
271292345:1.111.111.22:115114144:0.470.440.51:
TR
1 280:::0.66:::367:::0.19:::
CN
16 45216 44419 09724 0301.071.131.231.3410 06610 25612 7617 7190.650.710.820.91 
JP
115 676119 748133 684:3.183.203.18:86 11289 783100 519:2.362.402.39:
RU
4 5454 8995 4736 5591.251.281.161.073 1763 3533 7804 4580.870.880.800.73 
US
292 153i258 520pi251 254pi:2.65i2.68pi2.68pi:205 021i180 343pi176 241pi:1.86i1.87ip1.88ip:
NOTES
EU-27, EU-25 and EEA28: Eurostat estimatesInformation note (i):HU - Total R&D expenditure: Defence is excluded; SE - 2003: underestimated data; SI - 2005 and Total R&D expenditure: underestimated data; US: excludes most or all capital expenditure.
Source: Eurostat/R&D statistics -OECD - MSTI 2006/1
20022004Millions of Euroas a % of GDP200220042005200520032003
Business enterprise R&D expenditure
Millions of Euroas a % of GDP
Total R&D expenditure
20022004200520022004200520032003
 
 
 
 ______________________________________________ 23/2007 — Science and technology — Statistics in focus3
#"
In the EU, 55% of R&D expenditure was funded by the BES in 2005
Table 3 indicates that ‘industry’ is the most important sourceof financing of R&D in almost all countries except the newMember States. On average, however, the EU'sperformance is below the objective of the Lisbon Strategywhich set a level of 66 % for private R&D funding. It is thebusiness sector- with 55% - that still contributes the largestshare. This percentage ranks behind the national rates ofLuxembourg (80 %), Japan (75 %), Switzerland (70 %),Finland (69 %), China (66 %) and the United States (63 %).The government sector (GOV) comes in second place,funding 35 % of the EU's R&D expenditure, whereas fundingfrom abroad remains small - amounting to 8 % in the EU in2004.The situation is different in the new Member States, thecandidate countries and the Russian Federation, where thesources of finance are more balanced and the governmentsector plays a greater role in R&D funding.
Table 3: R&D expenditure by sources of funds in million euro and as a percentage of total,all sectors and business enterprise sector, EU-25 and selected countries — 2004
EU-25
193 650s55s35s2.3s8s123 428s82s8s0.1s10s
BE
5 17760243.2133 6088250.013
BG
9928660.55249600.03
CZ
1 10053421.6470180151.44
DK
4 85560272.7103 355862i:12
DE
55 21567300.4238 61192i6i0.12
EE
8336442.417328540.110
IE
1 780p57p32p1.7p9p1 150p87p3p0.0p10p
EL
97828463.8223137640.319
ES
8 94648414.864 86582120.35
FR
35 53452381.9922 2108090.011
IT
15 253::::7 29375140.011
CY
4719645.912108550.110
LV
4746310.023217730.020
LT
13720636.311297230.525
LU
42680110.283798930.08
HU
721i3752i0.6102977740.118
MT
1219600.022375170.08
NL
8 37651361.4114 8048230.115
AT
5 25047330.9193 5566760.026
PL
1 13927652.7532780170.13
PT
1 02032603.253388950.05
RO
23544491.5513067270.16
SI
37958300.4112548240.213
SK
1743857i0.348671270.02
FI
5 25369261.233 6839540.01
SE
10 642i65i23i4.3i7i7 886i86i6i0.2i8i
UK
29 95644335.81718 88366100.023
IS
27444401.5141427740.020
NO
3 41149421.571 96081100.09
EEA28
197 259s55s35s2.3s8s125 404s82s8s0.1s10s
CH
8 48670232.356 257912i0.57
HR
34543477.831449420.05
TR
1 28041516.913679431.12
CN
19 097b66bi24bi:1bi12 761b91bi5bi:2bi
JP
119 7487518e6.8e089 7839810.10
RU
5 47331610.483 78038530.19
US
251 254pi64pi31pi5.4pi:176 241pi89i11p:i:i
NOTES
EU-25, EEA28: Eurostat estimatesExceptions to the reference year 2004: MT, TR 2002; BE, DK, EL, LU, NL, PT, SE, IS, NO, JP: 2003Information note (i):HU - Total R&D expenditure: Defence is excluded; DK: includes other classes;DE: BES underestimated data, GOV overestimated data; SE, SK: underestimated data.CH: Federal or central government only; CN: the sum of the breakdown does not add up to the total; US - Total R&D expenditure: excludes most or all capital expenditure.US - BES and sector of funds BES: excludes most or all capital expenditure, includes R&D in the SSH and includes other classes; US - BES and sector of funds Other and Abroad: included elsewhere.
Source: Eurostat/R&D statistics -OECD - MSTI 2006/1
Millions of Euroas a % of total
Sources of fundsBESGOVOther nationalsourcesAbroadTOTAL
as a % of totalMillions of Euro
AbroadOther nationalsourcesGOVTOTAL
Total R&D expenditure
BESSources of funds
Business enterprise R&D expenditure
 

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