ICT Industry Analysis


 

PREDICT 2015 REPORT

ICT sector business expenditure on R&D (ICT BERD)

Figure 1–9-a: Contribution of ICT and non-ICT sector BERD to total BERD intensity (BERD/GDP). European Union (2006-2012)   Figure 1–9-b: ICT sector BERD and non-ICT sector BERD annual real growth rates. European Union (2006-2012)

 


Source: Eurostat, elaborated by Ivie and JRC-IPTS

The weight of BERD on GDP –or BERD intensity (BERD/GDP)– increased in 2012 with respect to 2011. It was around 1.32% in 2012. ICT sector concentrates 16.87% of R&D expenditure in business sector. Opposite to what happened with total BERD, in the ICT sector this share has seen a continuous fall since 2006 (Figure 1–9)

 

 
Figure 1–10-a: ICT manufacturing and ICT services BERD. Share of total ICT sector BERD. European Union (2006-2012)   Figure 1–10-b: ICT manufacturing and ICT services BERD annual real growth rates. European Union (2006-2012)

 


Source: Eurostat, elaborated by Ivie and JRC-IPTS

ICT sector BERD in manufacturing has a share on total ICT sector BERD of around 46%, but has gone down quite sharply in seven years, from 52.89% in 2006 to 42.51% in 2011 and to 40.87% in 2012. Its origin must be found in the continuous decline of ICT manufacturing BERD in absolute terms throughout the period with the exception of 2011. This pattern contrasts with the trend in ICT services, which even in the worst years of the crisis presented positive growth rates (Figure 1–10)

 

Figure 1–11-a: ICT sector BERD share of ICT sector value added. European Union (2006-2012)   Figure 1–11-b: ICT sector BERD and VA annual real growth rates. European Union (2006-2012)

 


Source: Eurostat, elaborated by Ivie and JRC-IPTS

ICT BERD intensity in the EU was at around 5.36% over the period 2006-2012, which is on average 4.4 times higher than the same ratio for the total economy. It has increased slightly along the period reaching a maximum of 5.59% in 2012 (Figure 1–11)

 

Figure 1–12:ICT and non-ICT sector BERD intensity (BERD/VA). European Union (2006-2012)
a) Manufacturing
 
b) Services

 

Source: Eurostat, elaborated by Ivie and JRC-IPTS. 

ICT manufacturing sectors have higher BERD intensity than ICT services. These differences remain when we look at non-ICT manufacturing and services sectors. BERD intensity has grown significantly in ICT manufacturing sectors from 26.86% in 2011 to 29.56%, the highest value in the whole period (Figure 1–12)

 

Figure 1–13: ICT sector BERD share of total BERD and comparison with non-ICT economic activities. European Union (2006-2012)

a) Manufacturing
 
b) Services

 


Note: Agriculture, forestry and fishing; Mining and quarrying; Electricity, gas, steam and air conditioning supply; Water supply, sewerage, waste management and remediation activities;
and Construction are not included in either manufacturing or services industries
Source: Eurostat, elaborated by Ivie and JRC-IPTS. 

While manufacturing represents around 14% in terms of VA and 15% in terms of employment, it accounted for around 64% in terms of BERD in 2010 to 2012. However, this share was lower than in 2006. Besides ICT sectors, the non-ICT sector with the highest share on total BERD is Professional, scientific and technical activities (Figure 1–13)

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