ICT Industry Analysis


 

PREDICT 2014 REPORT

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

Figure 4–10: Share of ICT and non-ICT BERD for the European Union and other economies (2011)

Note: 2008 for Brazil and Switzerland. Data
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 2011, more than 70% of total BERD (73.57%) in Taiwan was devoted to the ICT sector, 51.21% in Korea and 31.23% in the US. In the EU the share was around half of that of the US (16.54%).

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Figure 4–11: Distribution of ICT BERD among the European Union and other economies (2010, 2011)

                              2010 2011
Note: 2008 for Switzerland for both years.
Note: The figures for China, India and Russia should be interpreted with caution since the available information is scarce and not fully comparable.
Source: See methodology, elaborated by Ivie and JRC-IPTS.
 

ICT sector BERD is much more concentrated in a small number of countries than VA or employment. Almost half of total ICT sector BERD (41.13%) was made in the US in 2011. The EU follows, but at a large distance (16.89%). However, the contributions of the US and the EU decreased between 2010 and 2011, while those of Taiwan, Korea and China increased

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Figure 4–12: Distribution of ICT BERD by manufacturing and services sub-sectors for the European Union and other economies (2011)


Note: 2008 for Brazil and Switzerland.
Source: See methodology, elaborated by Ivie and JRC-IPTS.

ICT sector BERD is more evenly distributed than ICT sector 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 (2011)

Note: 2008 for Switzerland. Data were not available for Brazil. Non-ICT service industries include total Trade.
Note: The figures for China, India and Russia should be interpreted with caution since the available information is scarce and not fully comparable.
Source: See methodology, elaborated by Ivie and JRC-IPTS.
 

BERD in ICT manufacturing industries is very high in Taiwan and Korea while BERD in non-ICT manufacturing industries is very important in all countries, except for Russia. 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 BERD to total BERD intensity (BERD/GDP). European Union and other economies ( 2010, 2011)

                                    2010                               2011

Note:
2008 for Switzerland for both years.
Source: See methodology, elaborated by Ivie and JRC-IPTS.

The highest total BERD intensity corresponded to Korea (3.09%) in 2011, and three other countries had BERD/GDP ratios above 2%: Japan, Taiwan and Switzerland. For the EU the corresponding figure was 1.29%, and in the US 1.95%. ICT sector BERD intensity accounted for a 0.21% in the EU, as compared with 1.58% in Korea and 1.61% in Taiwan, or around 0.60% in the US and Japan.

 

Figure 4–15: Contribution of ICT sub-sectors to ICT BERD intensity (ICT BERD/ICT GVA). European Union and other economies (2011)


Note:
2008 for Brazil. 2010 forCanada and Japan.
Source: See methodology, elaborated by Ivie and JRC-IPTS.

In Korea and Taiwan - and to a lesser extent in Switzerland, Japan and the US - the sector with the highest ICT BERD intensity is Manufacture of electronic components and boards. Computer and related activities is the most prominent sub-sector in the US, Norway and Australia. This sub-sector also has the highest ICT BERD intensity in the EU, followed by Manufacture of communication equipment.