Research and development
November 17, 2009
Overall, European companies boosted their investment in research and development by 8.1 percent, maintaining a lead over the US (5.7 percent) and Japan (4.4 percent).
Germany, already the EU's largest R&D investor, increased its spending by 8.9 percent.
Two EU companies made the top ten in research and development (R&D) investment: German car maker Volkswagen, securing 3rd place with an investment of 5.93 billion euros, and Finnish telecommunications manufacturer Nokia, which came in 8th.
The world's biggest R&D investor was Japanese car company Toyota, which spent 7.61 billion euros. However, the EU's science and research chief, Janez Potocnik, said the result could have been skewed by the deprectiation of the yen.
The commissioner also said it was impossible to factor in global inflation, warning against over-analyzing the results.
Public investment must remain high
Economist Bruno Van Pottelsberghe of the Brussels-based think tank Bruegel said public R&D spending varies widely across Europe. But Potocnik said in times of economic crisis, it is even more important for governments to invest.
"Not all of the companies have the same buffer of keeping investment high, some have better than the others," he said.
"In these times, I think it's extremely important that public investment remains high."
US and Europe outpaced by China
The EU's scoreboard surveyed 1,000 EU companies and 1,000 companies outside Europe.
The report found the world's emerging economies dramatically outpaced the US, Japan and Europe in R&D investment. China led the increase with a 40 percent increase.
China is also investing more aggressively in alternative technologies. However, US companies continue to lead in industries such as biotechnology, pharmaceuticals, and information and communication technologies.
The report found that European companies were investing more evenly across the sectors, with a preference for the car and parts industries.
Author: Nina-Maria Potts
Editor: Clare Atkinson