ICT Industry Analysis


 

PREDICT 2014 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 (2006-2011)   Figure 1–9-b: ICT sector BERD and non-ICT sector BERD annual real growth rates. European Union (2006-2011)

 


Source: Eurostat, elaborated by Ivie and JRC-IPTS

The weight of BERD on GDP –or BERD intensity (BERD/GDP)– is around 1.30% in 2011. The share of the ICT sector in total BERD intensity has decreased along the period.

 
Figure 1–10-a: ICT manufacturing and ICT services BERD. Share of total ICT sectorBERD. European Union (2006-2011)   Figure 1–10-b: ICT manufacturing and ICT services BERD annual real growth rates. European Union (2006-2011)

 


Source: Eurostat, elaborated by Ivie and JRC-IPTS

ICT BERD in manufacturing has a share on total ICT BERD of around 45%, but has gone down quite sharply in six years, from 52.91% to 42.54%, due to a continuous decline of ICT manufacturing BERD in absolute terms until 2010. However, it began to grow in 2011, but less than ICT sector BERD in services.

 

Figure 1–11-a: ICT BERD share of ICT value added. European Union (2006-2011)   Figure 1–11-b: ICT BERD annual real growth rates. European Union (2006-2011)

 


Source: Eurostat, elaborated by Ivie and JRC-IPTS

ICT BERD sector intensity in the EU was around 5.30% on average over the period 2006-2011, which is 4.3 times higher than the same ratio for the total economy. It has increased slightly along the period.

 

Figure 1–12: ICT and non-ICT BERD intensity (BERD/VA). European Union (2006-2011)

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 compare BERD intensity in non-ICT manufacturing and services sectors.

 

Figure 1–13: ICT sector BERD share of total BERD and comparison with non-ICT economic activities. European Union (2006-2011)

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 15.2% in terms of employment, it accounted for around 64% in terms of BERD. However, it lost share over the period. Besides ICT sectors, the non-ICT sector with the highest, and continuously increasing, share on total BERD is Professional, scientific and technical activities.

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