ICT Industry Analysis


 

PREDICT 2013 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 (2010)

Note: 2008 for Brazil and Switzerland. Data for India and China should be interpreted with caution
Source: See methodolgy, elaborated by Ivie and JRC-IPTS.

BERD is very unevenly distributed among ICT and non-ICT sector in the countries considered. In 2010, more than 70% of total BERD (72.93%) in Taiwan was devoted to the ICT sector, 52.59% in Korea and 30.31% in the US. In the EU the share was around half of that of the US (16.58%) .

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Figure 4–11: Distribution of ICT BERD among the European Union and other economies (2009, 2010)

2009 2010
Note: 2009 for Brazil, China, India and Japan for both years.
Source: See methodolgy, 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 (44.18%) was made in the US. The EU follows, but at a large distance (17.51%). While the contributions of the US, the EU and Japan decreased between 2009 and 2010, 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 (2010)


Note: 2008 for Brazil and Switzerland.
Source: See methodolgy, 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 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 (2010)

Note: 2008 for Switzerland for both years. Data were not available for Brazil. Non-ICT service industries include total Trade.
Source: See methodolgy, elaborated by Ivie and JRC-IPTS.
 
 

BERD in ICT manufacturing industries is very high in Taiwan and Korea, while 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 (2009, 2010)

2009 2010

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

The highest BERD intensity corresponded to Korea in 2010, and three other countries had BERD/GDP ratios above 2%: Japan, Switzerland and Taiwan. For the EU the corresponding figure was 1.24%, and in the US 1.92%. ICT BERD intensity accounted for 0.21% in the EU, as compared with 1.47% in Korea, or around 0.6% 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 (2010)


Note:
2008 for Brazil and Switzerland; 2009 for Japan.
Source: See methodolgy, 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.