“European R&D Benchmarking (2002) ”

1. Science, Technology and Innovation Policy Student Presentations “European R&D Benchmarking (2002)” Towards a European Research Area Key Figures 2002 Indicators for benchmarking of national research policies Students: Miguel Carvalho Oscar Ferreira

2. Science, Technology and Innovation Policy “European R&D Benchmarking (2002)” Key Findings • The difference in R&D financing between the EU and the US is almost 1:2 in volume terms. • Most of the small EU economies, and those that are catching up, have recorded the highest growth rates for R&D investment. • In the EU, governments account for a much larger share of R&D investments than in the US and Japan. • The involvement of human resources in knowledge production is comparatively low in the EU when compared with Japan or the USA. • In terms of scientific performance, the EU as a whole is doing well. With respect to highly cited publications, some EU countries show outstanding world shares. • The existing gap in output per capita between the EU and the US is principally due to lower employment rates in the EU and to the smaller number of working hours per worker per year. • Some candidate countries today possess a huge potential capacity to produce scientific and technological knowledge.

3. Science, Technology and Innovation Policy “European R&D Benchmarking (2002)” R&D Investment for the Knowledge-Based Economy • The difference in R&D financing between the EU and the US is almost 1:2 in volume terms (caused by a slow growth of EU R&D financing since the mid 90s).

4. Science, Technology and Innovation Policy “European R&D Benchmarking (2002)” R&D Investment for the Knowledge-Based Economy • Most of the small EU economies, and those that are catching up, have recorded the highest growth rates for R&D investment.

5. Science, Technology and Innovation Policy “European R&D Benchmarking (2002)” R&D Investment for the Knowledge-Based Economy • In the EU, governments account for a much larger share of R&D investments than in the US and Japan. • The EU’s business sector is lagging behind.

6. Science, Technology and Innovation Policy “European R&D Benchmarking (2002)” Human Resources in S&T • The involvement of human resources in knowledge production is comparatively low in the EU when compared with Japan or the USA. • Finland, already the best performer, is still increasing considerably.

7. Science, Technology and Innovation Policy “European R&D Benchmarking (2002)” Human Resources in S&T • The business sector in the EU lags behind the US and Japan in taking researchers. • Encouragement for businesses to employ researchers would be needed.

8. Science, Technology and Innovation Policy “European R&D Benchmarking (2002)” Human Resources in S&T • The percentual growth in New PhDs in catching up economies is essentially due to a low starting number.

9. Science, Technology and Innovation Policy “European R&D Benchmarking (2002)” Human Resources in S&T • The high quality of tertiary education should be maintained. • The tertiary education private sector has a huge potential to grow in the UE.

10. Science, Technology and Innovation Policy “European R&D Benchmarking (2002)” Human Resources in S&T • The main foreign destinations of EU students are the USA and Canada (red). • The main regions of origin of foreign researchers in the EU are other European countries, Asia and Oceania, and Africa (blue).

11. Science, Technology and Innovation Policy “European R&D Benchmarking (2002)” Comparing, Performance in Science, Technology and Innovation Number of scientific publications and highly cited papers • The EU leading countries are research-intensive, medium sized countries with a strong urge to publish internationally. • Only a small fraction of the overall scientific output is highly cited.

12. Science, Technology and Innovation Policy “European R&D Benchmarking (2002)” Comparing, Performance in Science, Technology and Innovation Number of patents at the EPO, USPTO, and annual growth per million population

13. Science, Technology and Innovation Policy “European R&D Benchmarking (2002)” Comparing, Performance in Science, Technology and Innovation World market share of exports of high-tech products • The World market share of high-tech products indicates the strength of an economy in R&D. • A large share is usually associated with high levels of R&D investment, increased productivity, and highly paid jobs for skilled workers.

14. Science, Technology and Innovation Policy “European R&D Benchmarking (2002)” Comparing, Performance in Science, Technology and Innovation EU exports and imports of high-tech products: Top ten lists

15. Science, Technology and Innovation Policy “European R&D Benchmarking (2002)” Impacts of the Knowledge-Based Economy on Competitiveness Labor productivity – GDP per hour worked • Luxembourg has by far the highest productivity rate, although it’s small size and special economic structure probably create some distortions. • This benchmarking indicator shows the relationship between economic input in units of labor and the economic output in GDP.

16. Science, Technology and Innovation Policy “European R&D Benchmarking (2002)” Impacts of the Knowledge-Based Economy on Competitiveness Value added and Employment of high-tech and medium high-tech industries • High-tech and medium high-tech industries: manufacture of chemicals and chemical products, mechanical and automotive engineering, machinery and transport, electrotechnology, information and communication, measurement, control and instrumentation, optics.

17. Science, Technology and Innovation Policy “European R&D Benchmarking (2002)” Impacts of the Knowledge-Based Economy on Competitiveness Value added and Employment in knowledge intensive services • Knowledge Intensive Services: post and telecommunications, computer and related activities, R&D, water transport, air and space transport, financial intermediary, real estate, renting and business activities, health and social work and recreational, cultural and sporting activities.

18. Science, Technology and Innovation Policy “European R&D Benchmarking (2002)” Candidate Countries to EU • Many Candidate countries (Estonia, Poland, Hungary, Slovak Republic and Turkey) invest in R&D at the same level as those Member States with the lowest R&D intensities (such as Greece with 0.7% or Portugal with 0.8%).