European Business to Increase R&D Spending Despite Crisis

Top EU businesses expect their investments in research and development to grow by an average of 4% annually over the period 2012 to 2014, according to a Commission survey of some of Europe's companies that invest the most in R&D. The figures show the importance that these companies place on R&D as a key factor for their future growth and prosperity, despite the current economic difficulties. The front runner is the software and computer services sector, which expects R&D investment to grow by 11% per year on average. In-house R&D is seen as the most relevant driver of innovation by the surveyed companies, followed by market research and related activities for new product introduction.

"This positive trend for corporate R&D investment is essential for European competitiveness," said Máire Geoghegan-Quinn, Commissioner for Research, Innovation and Science. "These companies are the main drivers in making the European economy more knowledge-based and smarter. Our future research and innovation programme, Horizon 2020, will give a further boost to innovative enterprises."

When asked about effects of policies and external factors on their innovation activities, surveyed companies highlighted the strong positive effects of fiscal incentives, national grants, EU financial support and public-private partnerships both at national and EU level. In contrast, the time needed to obtain intellectual property right protection and the costs of that protection were seen by many companies as key factors impacting negatively on their innovation activities. This confirms the importance of an efficient IPR regime for fostering companies’ innovation activities.

The surveyed companies were also asked about the importance of various ways to share knowledge. Collaboration agreements with other companies stand out as the most important. For companies active in high R&D intensity sectors, this is followed by licensing in/out with other companies, and then agreements with higher education institutions and other public research organisations. For companies in medium and low R&D intensity sectors, collaboration agreements with higher education institutions and other public research organisations are seen as more important than licensing. In general, the results show the strong importance given to these various ways of sharing knowledge by many companies, which could be a sign of the increasing role of open innovation.

The EU Survey on R&D Investment Business Trends was carried out by the European Commission's Joint Research Centre (JRC) at the Institute for Prospective Technological Studies (IPTS) and the Directorate General for Research and Innovation.

The survey results are based on 187 responses of mainly larger companies from the 1,000 EU-based companies in the 2011 EU Industrial R&D Investment Scoreboard (IP/11/1205 and MEMO/11/705). These responses were collected between 16 January and 28 April 2012.

Taken together, these 187 companies are responsible for R&D investment worth almost €45 billion, constituting around 40% of the total R&D investment by the 1,000 EU Scoreboard companies, which is a significant share of European business investment in R&D. The 4% average growth level is slightly down on the 5% growth expected in the previous survey, reflecting the worsening of the economic context.

By end-2012 the European Commission will publish its next EU Industrial R&D Investment Scoreboard, which ranks the worldwide biggest companies investing in R&D.

For further information and the survey is available at:
http://iri.jrc.es/reports.htm

Most Popular Now

Stepping Hill Hospital Announced as SPAR…

Stepping Hill Hospital, part of Stockport NHS Foundation Trust, has replaced its bedside units with state-of-the art devices running a full range of information, engagement, communications and productivity apps, to...

DMEA 2025: Digital Health Worldwide in B…

8 - 10 April 2025, Berlin, Germany. From the AI Act, to the potential of the European Health Data Space, to the power of patient data in Scandinavia - DMEA 2025...

Is AI in Medicine Playing Fair?

As artificial intelligence (AI) rapidly integrates into health care, a new study by researchers at the Icahn School of Medicine at Mount Sinai reveals that all generative AI models may...

New System for the Early Detection of Au…

A team from the Human-Tech Institute-Universitat Politècnica de València has developed a new system for the early detection of Autism Spectrum Disorder (ASD) using virtual reality and artificial intelligence. The...

Generative AI's Diagnostic Capabili…

The use of generative AI for diagnostics has attracted attention in the medical field and many research papers have been published on this topic. However, because the evaluation criteria were...

Diagnoses and Treatment Recommendations …

A new study led by Prof. Dan Zeltzer, a digital health expert from the Berglas School of Economics at Tel Aviv University, compared the quality of diagnostic and treatment recommendations...

AI Tool can Track Effectiveness of Multi…

A new artificial intelligence (AI) tool that can help interpret and assess how well treatments are working for patients with multiple sclerosis (MS) has been developed by UCL researchers. AI uses...

Surrey and Sussex Healthcare NHS Trust g…

Surrey and Sussex Healthcare NHS Trust has marked an important milestone in connecting busy radiologists across large parts of South East England, following the successful go live of Sectra's enterprise...

Dr Jason Broch Joins the Highland Market…

The Highland Marketing advisory board has welcomed a new member - Dr Jason Broch, a GP and director with a strong track record in the NHS and IT-enabled transformation. Dr Broch...

DMEA 2025 Ends with Record Attendance an…

8 - 10 April 2025, Berlin, Germany. DMEA 2025 came to a successful close with record attendance and an impressive program. 20,500 participants attended Europe's leading digital health event over the...

Multi-Resistance in Bacteria Predicted b…

An AI model trained on large amounts of genetic data can predict whether bacteria will become antibiotic-resistant. The new study shows that antibiotic resistance is more easily transmitted between genetically...

AI-Driven Smart Devices to Transform Hea…

AI-powered, internet-connected medical devices have the potential to revolutionise healthcare by enabling early disease detection, real-time patient monitoring, and personalised treatments, a new study suggests. They are already saving lives...