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Mapping R&D Investment by the European ICT Business Sector

  • Authors: Sven Lindmark, Geomina Turlea and Martin Ulbrich
  • EUR Number: 23518 EN
  • Publication date: 11/2008

Abstract

The report shows that the ICT sector alone is responsible for about half the R&D investment gap between the EU and the US, i.e. the fact that EU invests a much smaller share of its GDP in R&D. It argues that this is partly because the ICT sector is a smaller part of the economy in the EU than it is in the US. More important, however, is the lower R&D intensity (business R&D / value added) of the ICT sector in the EU. This is mainly due to lower R&D intensity in two sub-sectors: Computer Services and Software, and Electronic Measurement Instruments. Current data analysis gives no indication that the ICT R&D gap is closing. The analysis further finds that among EU Member States, Northern Member States show higher ICT R&D intensity than Southern Member States, and the Western Member States a much higher intensity than the Eastern Member States. The bulk of the paper then takes a closer look at each of the ICT sub-sectors, mapping out the R&D effort in each of them.

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