ICT Industry Analysis



ICT sector business enterprise R&D expenditure(BERD)

Figure 2–6: CT sector BERD share in total BERD by sub-sector (2011, 2012)

Source: Eurostat, elaborated by Ivie and JRC-IPTS

ICT BERD across ICT sub-sectors provides a quite different perspective to the picture resulting from a comparison of VA or employment. In 2012, more than half ICT manufacturing BERD was invested in Manufacturing of communication equipment. However, the highest shares correspond to Computer programming, consultancy and related activities (Figure 2-6).

Comparison of ICT manufacturing and services: distribution of ICT sector BERD among the biggest Member State contributors (2012)

Note: New MS are Bulgaria, Croatia, Cyprus, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Romania, Slovakia and Slovenia. Rest of old MS comprise Austria, Belgium, Denmark, Greece, Ireland, Luxembourg and Portugal.
Source: Eurostat, elaborated by Ivie and JRC-IPTS

ICT manufacturing was dominated by Germany (31.21%), France (15.21%), Finland (15.14%) and Sweden (14.87%), representing 76.43% of the total EU ICT manufacturing BERD. However, when ICT services BERD is considered, Finland (2.44%) and Sweden (2.29%) contributed by less than 3% each. In contrast, France (19.63%), United Kingdom (18.64%) and Germany (18.41%) held leading positions also in services (Figure 2-7).

Figure 2-8: ICT sector BERD intensity (ICT BERD/ICT VA) by sub-sector (2011, 2012)

Source: Eurostat, elaborated by Ivie and JRC-IPTS

The ICT sector is one of the most R&D-intensive sectors in the EU economy. ICT manufacturing sub-sectors are much more R&D intensive than ICT services sub-sectors. ICT BERD intensity was particularly high in one manufacturing sub-sector: Manufacturing of communication equipment, which even increased between 2011 and 2012 (Figure 2-8).