Tuesday, 20 August 2013

Research & Development in the Euro Zone

One of the five headline targets of Europe 2020 Strategy is to
achieve an R&D intensity (R&D expenditure as a percentage of
GDP) of 3% in the EU. In 2011, R&D intensity in the EU-27 stood
at 2.03%. Despite an increase on the 2010 figure (2.01%), it was
below the figures recorded in Japan (2009: 3.36%), South Korea
(2010: 4%) and the United States (2009: 2.87%), but higher than
in China (2009: 1.7%).
Among the EU Member States, only Finland (3.78%), Sweden
(3.37%) and Denmark (3.09%) exceeded the EU goal of devoting
3% of GDP to R&D, also outperforming the United States.
Another seven Member States, namely Germany (2.84%), Austria
(2.75%), Slovenia (2.47%), Estonia (2.38%), France (2.25%), the
Netherlands and Belgium (both 2.04%) were above the EU-27
average although below the target figure of 3%.
Between 2005 and 2011, R&D expenditure in the EU-27 increased
by an average of 3% per year, reaching EUR 257 billion in 2011.
Germany, France and the United Kingdom together accounted
for more than half of all R&D expenditure in the EU-27.
The business enterprise sector (BES) was the largest of the
four main institutional sectors of R&D performance in 2011,
accounting for 62.3% of EU-27 R&D expenditure. The higher
education sector (HES) and government sector (GOV) followed
with shares of 24.0% and 12.7% respectively.
In many of the countries under review, the ‘manufacturing’
sector accounted for the greatest share of business enterprise
R&D expenditure. This was notably the case in Germany,
Slovenia, Finland and Sweden, where 75% or more of R&D
expenditure by the BES was devoted to manufacturing. However,
eight other Member States (Bulgaria, Estonia, Ireland, Cyprus,
Latvia, Lithuania, Portugal and the United Kingdom) saw more
than half of their expenditure go on the services of the business
economy.

Source:  Eurostat

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