Finance and Pensions & Investments Blog

“The fact that large firms in the EU have largely maintained their investments in R & D shows that include the R & D is key to emerge stronger from the crisis. But the sheer distance from major U.S. companies in areas such as software and biotechnology, coupled with continued rapid rise of companies based in Asia, shows that Europe is in an emergency situation when it relating to innovation, “said Maire Geoghegan-Quinn, Commissioner for Research, Innovation and Science.

Japanese companies maintained their level of investment despite the sharp decline in sales (about 10%) and benefits (88.2%). Those based elsewhere in Asia (China, India, Hong Kong, South Korea and Taiwan) maintained the high growth of R & D in previous years.

The scoreboard shows that this year, despite a nearly unprecedented economic difficulties, investment in R & D remains a strategic priority for leading companies around the world.

Union Innovation

During 2009, the major EU companies reduced their investment in R & D much less than their U.S. counterparts, despite the decline in sales was similar (around 10%) and higher benefits (13% versus 1.4%).

The figures are mediocre European companies in key sectors of high technology. However, U.S. companies listed on the scoreboard invested five times more than their counterparts in the EU R & D on semiconductor, software four times and eight times in biotechnology.

According to Geoghegan-Quinn, “it is urgent that heads of State or Government support in the December European Council of the Union proposals for innovation which Antonio Tajani and I announced on 6 October.”

Large companies based in Asian countries maintained high growth in R & D in previous years, p. eg., China (up 40.0%), India (27.3%), Hong Kong (14.8%), South Korea (9.1%) and Taiwan (3.1%). Swiss companies also increased their investment in R & D (2.5%).

The major investors in R & D Spanish resist crisis

The companies investing in R & D Spanish increased their investment by 15.4%, although sales fell 6.4%. “This was due to strong gains by large Spanish companies,” says the Commission.

The figures for increased R & D differ from one Member State to another due to different weights of different sectors. Some of the most dramatic reductions were in companies based in countries such as Germany (3.2%) and France (4.5%), with a large automotive industry.

There were also sharp declines in countries such as Finland (6%) and Sweden (6.6%), in which the computer industry has a great burden for domestic enterprises.

Thirty of the first companies to cut their R & D investment in 2009

Three companies based in the EU are among the top 10 investors in R & D. along with three other U.S. and Japan to hold the first position. Also, among the top 50 include 16 companies from the EU, 19 U.S. and 12 in Japan.

“Despite the crisis, the sectoral composition of investment in R & D in the world has remained essentially unchanged. For U.S. companies, the sectors of high intensity in R & D, such as pharmaceuticals or information technology services, providing more than two-thirds of total R & D, “a statement from the Commission.

By contrast, in the case of European and Japanese companies dominate sectors of R & D intensity of medium-high (as the automobile or electronics), while sectors with high intensity of R & D represents only about third of the total investment. In addition, the alternative energy sector continued its rapid growth.

The average household spending fell 4.8% in 2009 over the previous year to 30,411 euros. Also, the average expenditure per person fell by 3.7% and stood at 11,365 per year. This is confirmed by the latest Household Budget Survey National Statistics Institute (INE).

Expenditure on housing was 29.4% of the household budget, in which the rent includes all housing services and repairs, as well as in the case of home ownership or leased, the rental value to be paid in the market for a home similar to the occupied (imputed rent).

By expenditure group, which presented a greater decrease in current terms were transport (-14.9%), articles of clothing and footwear (-8.3%), furniture, equipment and other housing costs (-6 , 0%) and hotels, cafes and restaurants (-4.8%). These four groups were the only ones who showed negative annual rates in 2008.

Spending on leisure, entertainment and culture, and food and nonalcoholic beverages consumed at home declined by 4.4% and 4% respectively. For its part, housing, water, electricity and fuels (4.8%), alcohol and snuff (3.0%) and communications (0.1%) were the only groups showing positive rates in 2009.

Who spends more and who less

The regions with the highest average spending per person are, in descending order, the Basque Country (13,380 euros), Navarra (13,241 euros) and Madrid (13,220 euros).

By contrast, Extremadura (9010 euros), Murcia (9447 euros) and the Canary (9474 euros) were the communities with the lowest expenditures per person. The average expenditure per person in the Basque Country was 17.7% higher than the national average, while that of Extremadura stood 20.7% below the average.

The statistical study also noted a decrease over 2008 in all household types, except in households headed by people 65 or older, who present a positive trend since 2006. On the other hand, note that the households of families with children registered in 2009 an average cost lower than that presented in 2006.

As in previous surveys, the highest spending per household will be recorded in the households of families with children (36,747 euros in 2009), followed by couples without children (28 767) and households headed by an adult with children (26 338). Households with less spending were the people who live alone, with mean values of 15,636 euros for people aged 65 or over and 20,837 for those under 65.