R&D expenditure increases in EU, with some countries topping the USA and Japan
Research and development (R&D) expenditure has increased within the EU in the last couple of years, with spending in some countries overtaking that of the USA and Japan, a new report by Eurostat, the EU's statistical office shows. Statistics show that R&D expenditure increased by 5.6 per cent in constant prices during 1999, and that it continued to rise in 2000, although at the slower rate of 2.3 per cent in Member States. R&D spending averaged 1.92 per cent in 1999 and 1.90 per cent of GDP (Gross domestic product) in 2000. Small changes are also evident in sectoral spending. R&D spending in the USA and Japan still far exceeds that of the EU, with expenditure totalling 2.64 and 3.04 per cent of GDP respectively. Two Nordic countries do however spend more on R&D than the USA and Japan. Sweden devoted 3.8 per cent of GDP to R&D in 1999, and Finland 3.19 per cent. Higher than average R&D spending is also evident in Germany, which spent 2.44 per cent of GDP on R&D in 1999, and France, which allocated 2.19 per cent in the same year. The lowest ratios for R&D expenditure have been registered in the EU's southern countries, with Greece allocating 0.51 per cent of GDP (1997 figures), Portugal 0.76 per cent, Spain 0.89 per cent and Italy 1.04 per cent. Between 1995 and 1999, the annual average growth of R&D expenditure has been particularly high in Finland, registering a 14 per cent increase at constant prices, and in Portugal, increasing its spending by 12 per cent. France and the UK witnessed the lowest increases in R&D expenditure over the same period, both recording a one per cent increase. Changes are also evident in the sectors financing R&D. Private sector R&D funding has increased from 63 per cent of total R&D expenditure in 1995 to 66 per cent in 2000, whilst higher education spending remained steady at around 20 per cent and government spending decreased from 16 per cent in 1995 to 14 per cent in 2000. Private sector expenditure continues to vary between Member States however, with private sector spending in 1999 accounting for 25 per cent in Portugal, 72 per cent in Belgium and 75 per cent in Sweden. Private sector spending accounted for 78 per cent of R&D expenditure in the USA and 74 per cent in Japan in 1999.