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ICT sector Business Expenditures (ICT BERD)

by Member States

 


In 2009, EU ICT sector Business Expenditures on R&D (ICT BERD) amounted to € 25 billion, 7.4% less than it was in 2008 (€ 27 billion). This represented 17.2% of the total EU BERD in 2009.

The figure below presents shares of ICT BERD in total BERD by Member State. Finland spent almost 60% of total BERD in the ICT sector in 2009, i.e. almost 15 percentage points more than the second country, Cyprus (44.8%).  Malta and Estonia followed with about 40% shares. Portugal, Ireland, Sweden and Italy, which spent between 20% and 30% of total BERD on ICT, were next. The country in 2009 with by far the lowest share of ICT BERD in total BERD was Slovakia, with 2.1%.

In 2009, twelve out of the twenty-seven countries had a higher share of ICT BERD in total BERD than in 2008. This group consisted of six countries belonging to the former EU15 (Ireland, Italy, Portugal, the United Kingdom, the Netherlands and Belgium) and six countries that entered the EU in recent years (Poland, Hungary, Cyprus, Latvia, Romania and Lithuania). The biggest jump took place in Romania, from 4.8% in 2008 to 16.0% in 2009. In the remaining countries, the weight of ICT BERD in total BERD dropped. The sharpest drop occurred in Bulgaria, from 19.8% in 2008 to 12.0% in 2009.

 

Share of ICT BERD in total BERD by Member State (2008-2009)

 

Source: Eurostat, elaborated by Ivie and JRC-IPTS [Download full image]

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At EU level in 2009, ICT BERD (€ 25 billion) was almost equally divided between Manufacturing (€ 11.3 billion) and Services (€ 13.7 billion).

The figure below shows the distribution of ICT BERD between ICT Manufacturing and ICT Services by Member State in 2009. There were only six EU countries with more ICT BERD in Manufacturing than in Services. Finland led with a share of 87.0%, followed by Sweden (77.6%) and Austria (63.5%). The remaining three countries in this group were Slovenia (53.3%), Germany (52.2%) and Belgium (46.5%).


On the other hand, shares of ICT BERD in Services were especially important in Cyprus (99.6%), Luxembourg (98.9%), Portugal (95.4%), Estonia (94.3%), Bulgaria (92.1%) and Romania (91.0%).

 

Distribution of ICT BERD between ICT Manufacturing and ICT Services by Member State (2009)

 

Source: Eurostat, elaborated by Ivie and JRC-IPTS  [Download full image]

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In 2009, the largest contributors to EU ICT BERD were Germany and France (21.2% and 18% respectively). These two countries alone were responsible for almost 40% of total EU ICT BERD. They were followed, albeit at a certain distance, by the United Kingdom (11.8%) and Finland (11.4%). Though Finland is a small economy in terms of GDP and even in terms of absolute ICT VA, it has the strongest ICT BERD intensity in the EU. These countries were followed by Italy (8.5%) and Sweden (7.5%), again a relatively small country with strong ICT BERD intensity. These six countries together spent almost 80% of total EU ICT BERD in 2009.

Distribution of ICT BERD among Member States (2009)

 

Source: Eurostat, elaborated by Ivie and JRC-IPTS [Download full image]

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In 2009, Finland was the country with by far the highest ICT BERD intensity (defined as the ratio of ICT BERD in ICT Value Added). ICT BERD intensity in this country amounted to 31.6%, while the EU level was 5.3% (see the figure below). Sweden and Denmark also had relatively high ICT BERD intensities, but only around a third of the Finnish one. In the same year, ICT BERD intensity in Sweden amounted to 12.5% and in Denmark to 9.1%. Only four other countries had ICT BERD intensities above the EU level: Austria (7.4%), Germany (6.8%), Portugal (6.8%) and France (5.5%). Some of the newer Member States – Slovakia (0.1%), Bulgaria (0.4%), Lithuania (0.6%), Romania (0.7%), Latvia (0.7%) and Poland (0.8%), together with Greece (0.7%) – had the lowest levels.

ICT BERD intensity increased slightly in the EU as a whole between 2008 and 2009 (from 5.0% to 5.3%). As already mentioned, Finland was the country with the highest increase but other countries experienced increases as well. Among these, we should mention Portugal, France, Belgium, Ireland, Slovenia, the United Kingdom, Italy, Malta, Hungary, the Netherlands, Cyprus, Poland, Latvia, Lithuania and Romania.

 

R&D intensity (ICT BERD/ICT VA) by Member State (2009)

 

Source: Eurostat, elaborated by Ivie and JRC-IPTS [Download full image]

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