20.01.2025
News
The EU Industrial R&D Investment Scoreboard has been a benchmark for industrial R&D performance since 2004, providing valuable insights for companies, researchers, and policymakers. In 2023, the world’s top 2,000 R&D investors allocated €1,257 billion, representing over 85% of global business-funded R&D. EU companies contributed 18.7% (€234 billion) of this total, showing robust growth of 9.8%, outpacing both the US (5.9%) and China (9.6%) in nominal terms. However, real growth still favored China at 10.2%.
Four sectors—ICT hardware, ICT software, health, and automotive—continue to dominate, accounting for more than 75% of global R&D. Automotive stood out with a €25.1 billion increase (13.2% growth), driven by strong contributions from EU firms. Meanwhile, ICT software slowed to 5.6%, and health sector growth was the weakest since 2013 at 4.9%. The EU’s leadership in automotive R&D contrasts with US dominance in ICT and health, while China’s growing presence in ICT and health signals increasing competition.
The EU’s R&D landscape is diverse, with Germany, France, and the Netherlands hosting most of its top investors. Unlike the US, where investments are concentrated in a few sectors, the EU spans a broader range of industries. Biotech and semiconductors have seen significant growth, and SMEs play a critical role, especially in pharmaceuticals and biotech, where they represent 75% of the EU’s R&D-focused SMEs.
Despite these strengths, global data reveals diminishing returns on R&D investments, and EU firms lag in productivity compared to US and Chinese counterparts. This highlights the need for policies beyond increased spending. To boost R&D impact, the EU must focus on refining processes, attracting talent, and incentivising meaningful innovation. The publicly available Scoreboard database supports stakeholders in analysing these trends, empowering informed decisions for stronger innovation ecosystems.