Not to be released before 13 January, 1999 (1.00 pm Finnish time) 1999:2

Inquiries: Mr Mikael Åkerblom + 358 9 1734 3270, Mr Pasi Aaltonen + 358 9 1734 3237
Director in charge: Ms Kaija Hovi

Research and development expenditure FIM 17.3 billion in 1997

A total of approximately FIM 17.3 billion was spent on research and development in Finland in 1997. From 1995 to 1997, the average annual nominal increase was 16 per cent. The growth in the R&D expenditure continued through 1998, when it is estimated to reach FIM 19.7 billion. The data derive from Statistics Finland's publication Tutkimus- ja kehittämistoiminta 1997 (Research and Development in Finland 1997).

In 1997, the R&D expenditure of enterprises amounted to slightly under FIM 11.4 billion, or two thirds of all research and development expenditure. Enterprises' R&D spending has been growing rapidly. From 1995 to 1997, the annual nominal increase was 18 per cent. Enterprises' R&D expenditure is estimated to grow by a further 17 per cent and reach a total of FIM 13.3 billion in 1998.

In 1997, the research and development expenditure of universities and central university hospitals amounted to FIM 3.4 billion, i.e. one fifth of all R&D expenditure. The R&D expenditure of the rest of the public sector amounted to FIM 2.4 billion.

Research and development expenditure 2.8 per cent of GDP

In 1997, the proportion of GDP spent on research and development was 2.8 per cent. The proportion has been continually growing. In the decade from 1987 to 1997 it has gone up from 1.8 per cent to 2.8 per cent, and is estimated to reach approximately 3 per cent in 1998.

Foreign financing on the increase

In 1997, Finnish enterprises accounted for 61 per cent of all R&D financing. This is 6 percentage points more than in 1993. From 1993 to 1997, the proportion of foreign financing has increased even more, and has gone up from 1.8 per cent to 5.4 per cent. This is mainly attributable to growing EU financing.

Growth boosted by electrical industry

In the electrical industry, R&D spending in 1997 amounted to a total of FIM 5.4 billion, which is nearly one half of all the R&D expenditure of enterprises. The annual nominal growth of research and development expenditure in the electrical industry is estimated to continue at 27 per cent in 1998, which will raise the total R&D expenditure of this branch to approximately FIM 6.8 billion.

In the metal and engineering industry, R&D expenditure went up from FIM 1.3 billion to FIM 1.7 billion between 1995 and 1997. The annual nominal growth was 13 per cent. R&D expenditure in the chemical industry totalled FIM 1.2 billion in 1997, with the annual nominal growth between 1995 and 1997 amounting to an average of 4 per cent.

Increase of 25 per cent in R&D years since 1995

In 1997, enterprises employed in R&D a total of 29,100 persons, who produced a total of 22,300 R&D years. Compared with 1995, the number of R&D personnel increased by 20 per cent, while R&D years went up by 25 per cent.

Statistics Finland has compiled statistics on R&D activities every second year since 1971. Additional interim inquiries were carried out in 1994 and 1996, collecting key data on the R&D activities of the enterprise sector. As from 1998, R&D data will be collected annually.

Source: Tutkimus- ja kehittämistoiminta 1997 (Research and Development in Finland 1997, in Finnish only). Statistics Finland