Press release 7.12.2005
Research and development expenditure growing slowly
Nearly EUR 5.3 billion was expended on research and development in 2004. R&D expenditure grew by five per cent, while in 2003 growth was around four per cent. R&D expenditure rose by EUR 250 million from the year before. Although R&D expenditure of business enterprises increased most, by over EUR 150 million, enterprises' share of R&D expenditure fell slightly, to 70 per cent. The data appear from Statistics Finland's publication Tutkimus- ja kehittämistoiminta 2004 (Research and Development 2004, in Finnish only).
Growth was fastest in the higher education sector, where R&D expenditure grew by eight per cent and the expenditure exceeded EUR one billion. The higher education sector now accounts for one fifth of all R&D expenditure, up by two percentage points from 2000. R&D expenditure of the rest of the public sector rose again to the level of 2002 after having contracted in the year before.
The GDP share of R&D expenditure was 3.5 per cent last year. Finland's investment in R&D did not grow much from the previous year. It is estimated that growth of R&D expenditure will also be fairly slow in 2005 and the GDP share will remain on level with the previous year.
By international comparison, the GDP share of R&D expenditure in Finland is still among the top in the world, preceded only by Israel (4.9%) and Sweden (4.0%). In 2003, 1.9 per cent of the GDP of the present EU area was used on research and development. In Japan (3.2%) and the United States (2.6%) clearly more is invested in R&D than in the EU area.
R&D expenditure by sector and GDP share of R&D expenditure in 1998-2004 and estimate for 2005
| Year | Business enterprises | Public sector** | Higher education sector*** | Total | GDP share of R&D expenditure**** |
|||
| e million | % | e million | % | e million | % | e million | % | |
| 1998 | 2,252.8 | 67.2 | 443.9 | 13.2 | 657.8 | 19.6 | 3,354.5 | 2.86 |
| 1999 | 2,643.9 | 68.2 | 470.1 | 12.1 | 764.8 | 19.7 | 3,878.8 | 3.21 |
| 2000 | 3,135.9 | 70.9 | 497.4 | 11.2 | 789.3 | 17.8 | 4,422.6 | 3.38 |
| 2001 | 3,284.0 | 71.1 | 500.9 | 10.8 | 834.1 | 18.1 | 4,619.0 | 3.38 |
| 2002 | 3,375.1 | 69.9 | 529.7 | 11.0 | 925.6 | 19.2 | 4,830.3 | 3.43 |
| 2003 | 3,527.9 | 70.5 | 515.4 | 10.3 | 961.7 | 19.2 | 5,005.0 | 3.48 |
| 2004 | 3,683.5 | 70.1 | 530.1 | 10.1 | 1,039.8 | 19.8 | 5,253.4 | 3.51 |
| 2005* | 3,770.3 | 70.0 | 538.4 | 10.1 | 1,079.7 | 20.0 | 5,388.4 | 3.52 |
* Estimate on the
basis of inquiry responses and other calculations
** Incl. PNP (private non-profit
sector)
*** Incl. polytechnics since 1999
**** GDP 2003 and 2004 preliminary data of Statistics Finland,
GDP 2005 is an estimate by the Ministry of Finance
Two thirds of R&D personnel researchers
In 2004, 76,700 persons worked in research and development (R&D), which is a couple of per cent more than one year before. Increase on the previous year was 1,900 persons.
In the data for 2004 R&D personnel are for the first time divided into researchers and other R&D personnel. Two thirds of the R&D personnel were researchers, and one third were mainly working at R&D related expert or support tasks. The proportion of researchers is naturally largest in the higher education sector, where it was 72 per cent of the R&D personnel. In the public sector and its major research institutes the proportion of researchers was smaller, 55 per cent. In enterprises two thirds of the R&D personnel were researchers.
Source: Tutkimus- ja kehittämistoiminta 2004 (Research and Development 2004, in Finnish only). Statistics Finland
Inquiries: Mr Vesa Hämäläinen +358 9 1734 2594, tiede.teknologia@stat.fi
Director in charge: Ms Kaija Hovi