“Key figures 2007 on Science, Technology and Innovation”

This is a new report from the European Union, stating that private sector investment in R&D is too low.

R&D intensity (R&D expenditure as % of GDP) in Europe has stagnated since the mid-nineties, while major competitors such as Japan, China or South Korea have been able to increase substantially their R&D effort, shaping a world where knowledge is more evenly distributed than ever before. Moreover, the R&D investment deficit against the US has remained constant over recent years. In particular, the low level of business R&D in the EU remains worrying. Key Figures 2007 shows that differences in the industrial structure of the EU compared to countries such as the US are the main cause for this low level of business R&D, with the EU having a smaller high-tech industrial sector, which usually has much higher levels of R&D spending. The new actions taken in Europe since 2005 in the context of the revised Lisbon Strategy need to be implemented if Europe is to successfully face this challenge.