ICT Industry Analysis


 

PREDICT 2015 REPORT

ICT sector business expenditure on R&D (ICT BERD) - comparison with non-EU countries

Figure 4–10: Share of ICT and non-ICT sector BERD for the European Union and other economies (2012)

Note: 2011 for Brazil. ICT-sector BERD for Switzerland includes only ICT manufacturing for the operational sector definition.
Source: See methodology, elaborated by Ivie and JRC-IPTS.

BERD is very unevenly distributed among ICT and non-ICT sector in the countries considered. In 2012, more than 70% of total BERD (73.00%) in Taiwan was devoted to the ICT sector, 52.47% in Korea and 31.13% in the US. In the EU the share was around half of that of the US (16.33%) and it was even lower in India (15.87%).

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Figure 4–11: Distribution of ICT BERD among the European Union and other economies (2011, 2012)

Note: 2012 for Switzerland for both years. ICT-sector BERD for Switzerland includes only ICT manufacturing for the operational sector definition.
Source: See methodology, elaborated by Ivie and JRC-IPTS.
 

ICT BERD is much more concentrated in a small number of countries than VA or employment. Almost half of total ICT BERD (42.37%) was made in the US in 2012. The EU follows, but at a large distance (16.17%). Note also that while the contributions of the EU and Japan decreased between 2011 and 2012, those of Korea, China and the US increased.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Figure 4–12: Distribution of ICT sector BERD by manufacturing and services sub-sectors for the European Union and other economies (2012)


Note: 2011 for Brazil. Switzerland: data available only for ICT manufacturing sub-sectors.
Source: See methodology, elaborated by Ivie and JRC-IPTS.

ICT BERD is more evenly distributed than ICT VA or ICT sector employment among the ICT sub-sectors. The main differences between the EU and the US is that the latter has a much higher share of Manufacture of electronic components and boards and Manufacture of computers and peripheral equipment, and a lower share in Manufacture of communication equipment and Telecommunications.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Figure 4–13: ICT BERD share of total BERD and comparison with non-ICT economic activities. European Union and other economies (2012)

Note: Data were not available for Brazil. Non-ICT service industries include total Trade. ICT services industries not available for Switzerland.
Source: See methodology, elaborated by Ivie and JRC-IPTS.
 

BERD in ICT manufacturing industries is very high in Taiwan and Korea and it is relatively higher in Japan, the US, China and Canada than in the other countries. When the EU and the US are compared the most notable fact is the lower US share of non-ICT industries –both manufacturing and services– and thus, the higher share of ICT industries.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Figure 4–14: Contribution of ICT and non-ICT sector BERD to total BERD intensity (BERD/GDP). European Union and other economies (2011, 2012)

                                    2011                               2012

Note:
2 for Switzerland for both years and 2011 for Brazil for both years.
Source: See methodology, elaborated by Ivie and JRC-IPTS.

The highest BERD intensity corresponded to Korea (3.40%) in 2012, and three other countries had BERD/GDP ratios above 2%: Japan, Taiwan and Switzerland. For the EU the corresponding figure was 1.32%, and in the US 1.93%. ICT BERD intensity accounted for a 0.22% in the EU, as compared with 1.78% in Korea and 1.66% in Taiwan, or 0.60% in Japan and the US .

 

Figure 4–15: Contribution of ICT sub-sectors to ICT sector BERD intensity (ICT sector BERD/ICT sector VA). European Union and other economies (2012)


Note:
2011 for Canada and Brazil. Switzerland includes only ICT manufacturing sub-sectors.
Source: See methodology, elaborated by Ivie and JRC-IPTS.

Korea and Taiwan also stand out for this variable. ICT sector BERD intensity in Korea reached 22.63% in 2012, followed by Taiwan and Japan. In Korea and Taiwan the ICT sector with the highest BERD intensity is Manufacture of electronic components and boards. Computer and related activities is the most prominent sub-sector in Norway, the US, Canada and Australia. This sub-sector also has the highest BERD intensity in the EU, followed by Manufacture of communication equipment.