EU Industrial R&D Investment Scoreboard Remains Robust in ICT

Companies in the EU have increased investment in research and development (R&D) in the health and ICT services sectors, according to the new edition of the EU Industrial R&D Investment Scoreboard. The EU remains among the leaders in green high-value patents technology and for green patents in energy-intensive industries, which reflects its transformation towards climate neutrality.

Specifically, EU-based companies increased investments in the health (10.3%) and ICT services (7.2%) sectors, albeit at a slower pace than the US and China-based ones. However, for the first time in 10 years, the overall investment has decreased mainly due to the weakening of R&D in the automobiles, aerospace, and defense sectors. In 2020, EU-based companies reduced their overall R&D investment by 2.2%. Companies in the US and China increased investments by 9.1% and 18.1% respectively. US and China-based companies have expanded their share of R&D in certain sectors during the coronavirus crisis, such as health (US: 17.9%; China: 30.7%), ICT services (US: 12.4%; China: 21.2%), and ICT producers (US: 7.8%; China: 11.5%).

Although the pandemic boosted the fast-growing ICT services and health industries globally, it hit hard traditional industries, such as automobiles (-4.3%) and aerospace and defense (-17%). The automobile sector is the most important R&D investing sector for EU companies, which contributed to the overall decline. Nonetheless, 14 EU companies are ranked in the global top 50 groups of the 2500 largest R&D investors.

“Investing in research and innovation is key for Europe's industry to lead the green transition, excel in the fast-growing ICT sector, and lead the new wave of deep tech innovations. The EU's industrial R&D investment scoreboard shows clearly where we need to boost our efforts, calling us to invest now for the future,“ said Mariya Gabriel, EU Commissioner for Innovation, Research, Education, Culture and Youth.

The importance of the ICT, health, and automotive industries in terms of global R&D competitiveness is illustrated by the fact that the aggregated R&D of these three industries has more than doubled since 2010, and notably, ICT services have tripled. As regards the ranking of companies' investment levels, the ICT sector consistently occupies the top of the Scoreboard underlining the increasing digitalization of the world economy. For 2020, all of the top five positions are in the digital sector.