EAE Business School is pleased to present its report entitled ‘Investment in R&D&I in Spain’, which has analysed public and private investment in innovation and development over the last seven years both in Spain and Europe, providing an analysis of the most innovative companies and sectors, as well as regional information regarding investment in this area.
According to the report drafted by EAE Business School, over 13 billion euros were invested in Spain in R&D&I activities in 2013, representing a 3% drop from the previous year and an accumulated decrease of 11% since 2008. A total of 53% of Spanish investment in R&D&I is made by companies, followed by higher education institutions, which account for 28%, and Public Administrations, at 19%.
Expenditure on R&D&I per capita in Spain in 2013 was €279.30, 2.34% less than the previous year, marking a slowdown in the decrease recorded in the preceding years. The percentage of total investment in R&D&I with respect to GDP reached 1.24%, representing a 4.62% drop compared to the previous year’s investments (1.3%) and ranking below the average rate across the European Union (2.02%). Private spending on R&D&I per inhabitant fell for the fourth year in a row, reaching €148.70, 1.85% less than the year before and below the levels recorded in countries such as Germany, France, the United Kingdom and Italy (€682.20, €465.70, €331 and €182.70, respectively).
Public spending on R&D&I per inhabitant reached €52.10, 4.58% les than in 2012, but higher than public investment in R&D&I per inhabitant in countries such as Italy (€50.50), the United Kingdom (€37.50) and Denmark (€33).
WHICH AUTONOMOUS COMMUNITIES ARE THE MOST INNOVATIVE?
According to EAE’s report, Madrid, Catalonia, the Basque Country, the Community of Valencia and Andalusia are the Spanish autonomous regions that invest most in R&D&I, with 4.5, 3.1, 1.542, 1.2 and 0.874 billion euros, respectively. The sum total of the investments of these five communities represents 85% of total expenditure on innovation activities in Spain. The ratio of innovation intensity (calculated as expenditure on innovation in relation to the turnover generated) achieved in Spain in 2013 was 0.91, an increase of 8.33% compared to the year before. The Autonomous Communities that recorded the highest levels of innovation intensity were the Basque Country, Navarra, the Community of Valencia, Castilla y León and Catalonia, with ratios of 1.63, 1.17, 1.04, 1.03 and 1, respectively. At the other end over the scale were the Canary Islands, the Balearic Islands and Extremadura, with innovation ratios of 0.19, 0.23 and 0.39.
The regions that dedicate the greatest proportion of their GDP to R&D&I were the Basque Country, Navarra, Madrid, Catalonia and Andalusia, with rates of 2.09%, 1.79%, 1.75%, 1.5%, 1.24% and 1.04%. At the bottom of the scale, we find Ceuta and Melilla, the Balearic Islands, the Canary Islands, Castilla La Mancha and Extremadura, with rates of 0.09%, 0.33%, 0.5%, 0.53% and 0.76%, respectively. Over the course of last year, the only Autonomous Communities that saw a rise in the proportion of GDP dedicated to R&D&I were Murcia and the Community of Valencia, climbing by 1.2% and 0.99%. The largest falls in this respect were recorded in Castilla La Mancha and Castilla y León.
IN WHICH SECTORS AND COMPANIES ARE MOST INNOVATIONS GENERATED?
Spain has a total of 38,092 innovating companies, with innovations that have been rolled out or deemed unviable in the period 2011 – 2013, a drop of 6.55% compared to the previous year. Catalonia, Madrid, Andalusia, the Community of Valencia and the Basque Country are the Autonomous Communities with the greatest numbers of innovating companies, with 8,206, 6,993, 4,399, 4,296 and 2,580 companies, respectively.
These five regions account for 70% of the total. In 2013, the number of innovating companies increased in four Autonomous Communities: Extremadura, Madrid, Galicia and the Canary Islands, climbing 17%, 2%, 2% and 0.23% respectively. The regions recording the greatest declines in innovating companies were Aragon, the Basque Country, Andalusia and Castilla La Mancha, where the number of innovating companies or companies with innovations under development fell by 24%, 15%, 12% and 10% respectively.
The sectors containing the largest proportions of innovating companies are Pharmaceuticals; Information, Electronic and Optical Products; Chemicals; IT Programming, Consulting and other IT activities; and Motor Vehicles, registering 59%, 57%, 48%, 43% and 40%, respectively. Between 2012 and 2013, the most innovative sectors (those that introduced the highest proportion of new and improved products) were Motor Vehicles; IT Programming, Consulting and other IT activities; and Other Transport Materials, with levels of innovative products of 57.22%, 51.31% and 39.49% respectively.
The sectors that recorded the greatest growth in terms of this type of products are IT Programming, Consulting and other IT activities; Artistic, Recreational and Entertainment Activities; and Administrative Activities and Auxiliary Services, climbing 174.24%, 153.91% and 64.49%.
The report by EAE found that there are 203,302 people working in the field of R&D in Spain, a drop of 2.65% compared to 2012. It also indicates that there are 123,225 researchers in the company, representing a fall of 2.80%. The Autonomous Communities with the largest number of people working in R&D are Madrid, Catalonia and Andalusia, with 47,609, 44,506 and 24,139 professionals, respectively. With respect to the number of researchers, Madrid, Catalonia and Andalusia also rank highest, with figures of 28,631, 25,503 and 13,868 researchers, respectively. Catalonia is the only region to record an increase in the number of professionals dedicated to R&D&I with a rise of 0.1%, while this figure fell in all other Autonomous Communities. The number of researchers climbed in Melilla, Ceuta and Extremadura, with increases of 20.98%, 18.33% and 2.28%, respectively.
INTERNATIONAL STATUS OF INVESTMENT IN R&D&I
The countries with that spend most on R&D&I per inhabitant are Sweden, Denmark and Norway, with spending per capita of €1,464, €1,380 and €1,293, respectively. The countries investment least are Romania, Bulgaria and Latvia, with the much lower figures of €28, €36.6 and €69, respectively. The most significant growth was recorded in Lithuania, Malta, Croatia, Belgium and Bulgaria, with increase of 13%, 11%, 8%, 7% and 6%, respectively.
The countries that recorded the highest proportions of GDP allocated to investment in R&D&I were Finland, Sweden and Denmark, with levels of 3.32%, 3.21% and 2.92%. At the other end of the scale were Romania, Cyprus and Latvia, with rates lower than 0.6%.
Conclusions of the Report
“Spain experienced a strong upward trend in investment in R&D&I until 2008, both in terms of the quantity per capita and the proportion of GDP. However, as the economic climate worsened, this upward trend was significantly interrupted. Thanks to this research, we can see that investment, companies and professionals dedicated to innovation activities remain concentrated in a very small number of Autonomous Communities, as well as gaining insight into the increasing importance of universities, business schools and education institutions with respect to R&D&I activities. The most noteworthy aspect of the Report is that we are starting to discern an improvement in the indicators analysed, highlighted by a clear slowdown in the decrease of investment in these activities, which gives us cause to be optimistic as we look to the future”, says Juan Aitor Lago, Director of EAE Business School’s Strategic Research Centre.
– In Spain, over 13 billion euros were invested in R&D&I activities, accounting for 1.24% of GDP.
– The ratio of Spanish innovation intensity (expenditure on innovation in relation to the turnover generated) climbed by 8.33% to 0.91.
– Expenditure on R&D&I per capita in Spain fell less markedly than in the preceding years to reach €279.30.
– Private spending on R&D&I per inhabitant fell to €148.70, a drop of 1.85% compared to the year before, while public spending on R&D&I per inhabitant reached €52.10.
– A total of 53% of Spanish investment in R&D&I is made by companies, followed by higher education institutions, accounting for 28%, and Public Administrations, at 19%.
– Madrid, Catalonia and the Basque Country are the regions that invest most resources in R&D&I, at 4.5, 3.1 and 1.542 billion euros, respectively.
– The Basque Country, Navarra and Madrid are the Autonomous Communities that dedicate the highest proportion of GDP to R&D&I, with rates of 2.09%, 1.79% and 1.75%, respectively.
– In Spain, there were 38,092 innovating companies in the period 2011 – 2013, a drop of 6.55% compared to the previous year.
– The sectors with the largest proportions of innovating companies are Pharmaceuticals; Information, Electronic and Optical Products; and Chemicals, registering 59%, 57% and 48%, respectively
– There were 203,302 working in the field of R&D in Spain, a drop of 2.65% from 2012, and 123,225 researchers, 2.8% less than the year before.
– The countries that invest most per capita in R&D&I are Sweden, Denmark and Norway, spending €1,464, €1,380 and €1,293, respectively.
– Finland, Sweden and Denmark record the highest proportions of GDP allocated to investment in R&D&I, with rates of 3.32%, 3.21% and 2.92%.