-Reviewing the overall development needs and investment priorities of the region; -Preparation of statutory Regional Planning Guidelines (RPGS) and reviewing Development Plans of local authorities in the region. 3. Strategic Directions Required for the RDP 2014-2020 A number of key directions have been identified by the SERA
and implementation of programmes and that will not merely focus on specific investment programmes alone. 4. Implementation/Administrative Requirements Most responsibility for successful implementation of the RDP 2014-2020 will rest with the various public
Finance and training Start-up companies can't begin without investment. Access to finance for business is another policy area that requires serious attention.
value network and competitive strategy 6 No No Gartner (2003) Market offerings, competencies, core technology investments,
moreover, assume that investments embodying information technology earn only a normal private rate of return and do not yield significantly higher social rates of return due to externalities and other spillover effects.
and its perplexing conjuncture with the wave of ICT-embodying investments in the U s. economy
or (2) there has been a vast overselling of the productivity-enhancing potential of investments in computers
and much new investment being allocated to ventures that remain experimental, and adaptive in nature--more akin to learning than the implementation of chosen routines.
the hedonic deflation of investment expenditures on computer equipment contributes to raising the measured growth of the computer capital services,
Here space limitations allow only brief notice of two related issues of this kind. 3. 1 Micro-level evidence on payoffs from IT investment--the excess returns puzzle.
The contrast between the strong (cross-section) revenue productivity impacts of observed computer investments and the weaker (time series) effects gauged in terms of task productivity,
It also is the case that subsequent investigations along the same lines have found that there were additional intangible investments that were correlatives of high information technology-intensity.
deserves further consideration. 3. 2 Leaving out investments in organizational change: the narrow scope of the NIPA How should the investments made by organizations
and individuals in learning to utilize a new technology be treated for national income accounting purposes? The factor payment side of the official National income and Product Accounts (NIPA) include the expenditures that this may entail--for labor time and the use of facilities,
and non-market investments in learning remains more or less unchanged. But that has not been the case.
but the same would not appear to be true of intangible investments in the retraining of workers and the reorganization of business operations that,
while others are part of the learning investments being made by firms in formal and informal on the job knowledge acquisition about information technology. 14 performance of microprocessor components and for many applications,
He contends that the hedonic price indexes for computers that come bundled with software actually would have fallen faster than the (unbundled) price-performance ratios that have been used as deflators for investment in computer hardware.
and Paul A. David, The Rise of Intangible Investment: the U s. Economy's Growth Path in the Twentieth Century, in D. Foray and B. A. Lundvall, eds.
Information technology, Organizational Transformation and Business Performance, MIT Sloan School of management Working Paper, September 1998.25 Brynolfsson, Erik and S. Yang, The Intangible Costs and Benefits of Computer Investments:
David, Paul A.,General Purpose Engines, Investment, and Productivity Growth: From the Dynamo Revolution to the Computer Revolution, in Technology and Investment-Crucial Issues for the 90s, E. Deiaco, E. Hörner and G. Vickery,(eds.
London: Pinter Publishers, 1991b. David, Paul A.,Digital Technology and the Productivity Paradox: After Ten Years,
the Danish Technological Institute, The Young Foundation, The Centre for Social Investment at Heidelberg University, Atlantis Consulting, the Catholic University of Portugal,
The relationship between social investment and social innovation has been researched under and poorly understood. WP4 examined how the social economy is funded,
as the acquisition of investment usually brings high capital costs and risks. Enhanced cooperation between different actors will help to improve income sources and also the opportunities for more investment in the field
as we have found there are a substantial number of innovators ready and willing to acquire investment.
WP5: Engaging the public. Citizen engagement is recognised widely as a key component to many social innovations,
and have a wider spectrum of application, e g. the Social Return on Investment (SROI), the Social Reporting Standard (SRS),
'‘social cohesion',‘impact investment'and‘sustainable development'.'This notion of a quasi-concept is a useful framing device
and investment the importance of its evaluation has started to grow. Thorough and transparent assessment of interventions which apply efficient and credible assessment
The acceptance of the Social Return on Investment (SROI), the Social Reporting Standard (SRS), Social Cost Benefit Analysis (SCBA),
let alone finance investments in growth and further innovation. In contrast, if social innovators do operate successfully in regular markets,
then their financing and investments in growth are not such a problem regular markets and investment actors will channel required resources to where they are needed
and where they will produce regular returns. Where social innovation is needed very much, however, market failure persists
related to this, capital costs are the main problem of investment logics to social innovators. The investment logic of commercial or impact investing is applicable on a rather limited basis, partly because of social innovators'income models,
but also because of legal and cultural constraints. Online survey results showed that only some 10%of the social innovators surveyed could service commercial types of investment at market terms,
while another 40%of the sample is potentially capable of repaying an investment at some reduced cost of capital.
Therefore, forms FINANCING DIGITAL € Financin g social innovation 27 of low-cost capital are needed and there are two principle paths to follow here:
Further research is needed to analyse ways to exploit investment models through more effective mechanisms of reducing investment capital costs which are the main barrier for this form of financing.
However, comparability issues and the potential to link measurement with investment objectives and terms are associated central problems with that.
Report on Social Finance Investment Instruments, Markets and Cultures in the EU. All available at tepsie. eu 28 SOCIAL INNOVATION THEORY AND RESEARCH Digital technology in social
%the rate at which many social investment funds make investments. This suggests limitations to the role that social/impact investment can play in funding
and financing social innovations. Clearly, there remains a significant role to be played by philanthropic organisations
the Danish Technological Institute, The Young Foundation, The Centre for Social Investment at Heidelberg University, Atlantis Consulting, the Catholic University of Portugal,
1 The 2013 EU Industrial R&d Scoreboard 1-third draft 28.10.2013-Acknowledgements The 2013 EU Industrial R&d Investment Scoreboard has been published within the context of the Industrial Research Monitoring
Publications Office of the European union European union, 2013 Reproduction is authorised provided the source is acknowledged 3 The 2013 EU Industrial R&d Scoreboard 3 The 2013 EU Industrial R&d Investment SCOREBOARD
Health & biotechnology 2005-13 6. Company foreign direct investments Annexes: A1-Background information A2-Methodological notes A3-Composition of the top 1000 EU sample A4-Access to the full dataset The 2013 EU Industrial R&d Investment
Scoreboard 5 Summary The 2013"EU Industrial R&d Investment Scoreboard"(the Scoreboard) contains economic and financial data for the world's top 2000 companies ranked by their investments in research and development (R&d.
The sample contains 527 companies based in the EU and 1473 companies based elsewhere. The Scoreboard data are drawn from the latest available companies'accounts,
Key messages Trends observed show a significant variation in R&d investment and economic results across industries and sectors.
A general remarkable resilience of R&d investment growth from top world R&d investors, in a period of economic uncertainty.
The 527 EU companies featuring among the top world 2000 R&d investors in 2012 increased their investment in R&d by 6. 3,
An analysis of foreign direct investments (FDI) by the companies in the world R&d ranking shows that the EU plays, together with the US, a major role in the international investment scenario, both
6 The 2013 EU Industrial R&d Investment Scoreboard Top world R&d investors continued to increase their investment efforts in research and development significantly (6. 2%)in 2012.
Scoreboard companies increased their R&d investments by an average 6. 2%per year (2010-2012). This resilience of companies'R&d investments during a period of economic uncertainty reflects the strategic importance that companies attach to such investment.
Figure S1 below shows the longerterm R&d trends for a subset of Scoreboard companies with available data for the past nine years.
One-year R&d investment and net sales growth in the Scoreboard. -12%-10%-8%-6%-4%-2%0%2%4%6%8%10%12%2005 2006 2007 2008 2009 2010 2011
2012 nominal growth R&d investment net sales Note: For 1496 out of the top world 2000 companies in the Scoreboard with data for the whole period.
The 2013 EU Industrial R&d Investment Scoreboard European commission, JRC/DG RTD. The 2013 EU Industrial R&d Investment Scoreboard 7 The 527 EU companies featuring among the top world 2000 R&d investors in 2012 are good exponents of sustained R&d
focus in a challenging environment. Their R&d growth rate of 6. 3%in 2012 is above the 4. 3%growth rate of net sales,
One-year R&d investment and net sales growth by EU companies. -15%-10%-5%0%5%10%15%20%2005 2006 2007 2008 2009 2010 2011 2012 nominal growth R&d investment
net sales Note: For 334 out of the top EU 527 companies in the Scoreboard with data for the whole period.
The 2013 EU Industrial R&d Investment Scoreboard European commission, JRC/DG RTD. 8 The 2013 EU Industrial R&d Investment Scoreboard Figure S3.
One-year R&d investment and net sales growth by US companies. -15%-10%-5%0%5%10%15%20%2005 2006 2007 2008 2009 2010 2011 2012 nominal growth R&d investment
net sales Note: For 547 out of the top US 658 companies in the Scoreboard with data for the whole period.
The 2013 EU Industrial R&d Investment Scoreboard European commission, JRC/DG RTD. Figure S4. One-year R&d investment and net sales growth by Japanese companies.
-15%-10%-5%0%5%10%15%20%2005 2006 2007 2008 2009 2010 2011 2012 nominal growth R&d investment
net sales Note: For 324 out of the top Japanese 353 companies in the Scoreboard with data for the whole period.
The 2013 EU Industrial R&d Investment Scoreboard European commission, JRC/DG RTD. The 2013 EU Industrial R&d Investment Scoreboard 9 For the first time since 2004, a company based in the EU leads the world R&d ranking:
The German carmaker Volkswagen, with €9. 5bn invested in R&d. Samsung Electronics from South korea jumps to the second place.
Despite lagging behind the US in the volume of R&d investments and in the number of companies, EU-based Scoreboard companies in the Software and Computer Services sector show very strong performance:
show very high increases in R&d investment and sales (14.2%and 11.3%respectively). The R&d growth rates of Volkswagen (32.1%),BMW (17.2%)and Robert Bosch (17%)determine a large portion of German and EU overall positive numbers.
10 The 2013 EU Industrial R&d Investment Scoreboard Trends observed in the pharmaceutical and biotechnology subsectors illustrate well the reinforcement of the US specialisation towards high-tech intensive sectors.
the trend over the last ten years shows that the EU-US R&d investment gap in this sector is maintained (see figure S6).
R&d investment of EU and US companies by sector group. 0 20 40 60 80 100 120 140 160 180 200 EU US
2008 2009 2010 2011 2012 R&d investment (Euro billion) Health ICT producers ICT services other high R&d intensity Automobiles & parts
The 2013 EU Industrial R&d Investment Scoreboard European commission, JRC/DG RTD. The 2013 EU Industrial R&d Investment Scoreboard 11 An analysis of foreign direct investments (FDI) by the companies in the world R&d ranking shows that the EU attracted 22%of FDI
projects on R&d from the set of non-EU companies. The EU, together with the US, plays a major role in the international investment scenario, both as a source and destination of knowledge-intensive FDIS.
From 2003 to 2012, the EU attracted 22%of FDI projects on R&d from the set of non-EU companies
The 2013 EU Industrial R&d Investment Scoreboard European commission, JRC/DG RTD. Note: The relative size has been calculated as the ratio of sector R&d expenditures in EU over US considering the 136 companies with R&d data for the whole period. 12 The 2013 EU Industrial R&d Investment
Scoreboard Figure S7. Inflows of FDIS in R&d by main world regions 2003-2012 Data:
The 2013 EU Industrial R&d Investment Scoreboard European commission, JRC/DG RTD. The 2013 EU Industrial R&d Investment Scoreboard 13 Introduction In 2013, we continued implementing changes in the EU Industrial R&d Investment Scoreboard (the Scoreboard) 2 aiming to enhance its capacity to monitor
and analyse worldwide trends in industrial R&d. For background information on the Scoreboard please see Annex 1. The scope of the Scoreboard has improved progressively,
the total R&d investment of companies included in the Scoreboard is equivalent to more than 90%of the total expenditure on R&d by businesses worldwide3.
The main indicators, namely R&d investment, net sales, capital expenditures, operating profits and number of employees are collected following the same methodologies
which only accounts to end 2011 were available. 2 The EU Industrial R&d Investment Scoreboard is published annually by the European commission (JRC-IPTS/DG RTD) as part of its Industrial Research and Innovation Monitoring
14 The 2013 EU Industrial R&d Investment Scoreboard This report concentrates on the analysis of the world's top 2000 companies that all invested more than €22. 6 million in R&d in 2012.
these all have R&d investments exceeding €5. 2 million. The characteristics of the sample of 2000 companies used for most of the analysis are summarised in Table 1. The sector
and country composition of the EU 1000 sample is found in Annex 3. This edition shows that companies continued to increase R&d investments in 2012 at a significant pace, higher than the growth rate of revenues.
It provides an overview of the main indicators for the top 2000 companies ranked by level of R&d investment
Finally, chapter 6 presents an analysis based on data about foreign direct investments (FDIS) made by the Scoreboard companies.
The methodological approach of the Scoreboard, its scope and the limitations are The 2013 EU Industrial R&d Investment Scoreboard 15 described in Annex 2
and the listing of companies ranked by their level of R&d investment is provided in Annex 3. The complete data set is freely accessible online at:
and country. 16 The 2013 EU Industrial R&d Investment Scoreboard Table 1. Profile of the 2013 Scoreboard. 2000 companies with R&d investment above €22. 6 million
The 2013 EU Industrial R&d Investment Scoreboard. European commission, JRC/DG RTD. The 2013 EU Industrial R&d Investment Scoreboard 17 Box 1. Methodological caveats Users of Scoreboard data should take into account the methodological limitations summarised here,
especially when performing comparative analyses (full description of methodology is found in Annex 2): A typical problem arises
companies'consolidated accounts have to include the benefits and/or losses due to the appreciation and/or depreciation of their investments abroad.
For example, this year the R&d growth rate of companies based in the Euro area with R&d investments in Japan is understated partly because the'losses'of their overseas investments due to the appreciation of the Euro against the Japanese yen (from ¥100. 6
the R&d growth rate of Japanese companies is overstated partly due to the'benefits'of their investments in the Euro area.
consequently the approach taken in the Scoreboard is to attribute each company's total R&d investment to the country in which the company has registered its office.
which may have a significant impact on companies'investment decisions, and the initial adoption or stricter application of the International Financial Reporting Standards (IFRS) 5. 5 Since 2005, the European union requires all listed companies in the EU to prepare their consolidated financial statements according to IFRS (see:
) 18 The 2013 EU Industrial R&d Investment Scoreboard The 2013 EU Industrial R&d Investment Scoreboard 19 1. Worldwide trends in corporate R&d This chapter
This edition shows that companies continued to increase R&d investments in 2012 at a significant pace and well above the growth rate of revenues.
Trends observed show a significant variation of R&d investment and economic results across industries and sectors and important differences with respect to the previous year.
The 527 EU companies increased R&d investment and net sales by the significant figures of 6. 3%and 4. 3%respectively.
The largest increases in R&d investment in this group were reported by companies based in China (12.2),
this year's edition of the Scoreboard still shows a significant rise in worldwide R&d investment.
please see methodological limitations in Annex 2. 20 The 2013 EU Industrial R&d Investment Scoreboard following the increase of 6. 1%in the year before.
Company investment in fixed capital continued to grow at a significant pace. It increased by 9. 6%compared with the previous year's increase of 12.7%.
%Capital expenditure as a percentage of net sales increased slightly from 6. 6%in 2011 to 7. 1%in 2012.7 Compound annual growth rate. 8 Fixed capital investment Table 1. 1 Overall
Factor World-2000 R&d investment, € bn 538.8 One-year change,%6. 2 CAGR7 3yr,%6. 4 Net sales, € bn 16845.8
The 2013 EU Industrial R&d Investment Scoreboard. European commission, JRC/DG RTD. The 2013 EU Industrial R&d Investment Scoreboard 21 1. 2 R&d trends by world region This section analyses the overall R&d and economic performance of the Scoreboard companies
according to the location of their registered offices in the main world regions. The 2000 companies are grouped into four main sets:
The R&d investment and net sales for the 527 EU companies continued to grow at significant pace in 2012, at 6. 3%and 4. 3%respectively (slightly above the world's average of 6. 2%and 4. 2%respectively.
The group of US companies increased R&d investment significantly above the world's average, at 8. 2%but net sales only grew by 2. 9%compared with a strong increase in 2011.
increasing R&d investments and net sales only by 0. 4%and 3. 3%respectively. Companies based outside of the EU,
The largest increase in R&d investment was reported by the 93 companies based in China (12.2),
Compared with last year's Scoreboard (1500 top R&d investors), the EU companies'share of total R&d investment rose by 1. 2 (from 28.3%to 29.5%).
The average R&d intensity of the EU, US and OC companies increased due to a higher growth of R&d investments compared with the growth rate of net sales,
Companies based in the EU recovered substantial levels of investment (9. 8%growth) 22 The 2013 EU Industrial R&d Investment Scoreboard compared with a slight decrease in the previous year.
and technology hardware whereas the EU and Japan are stronger in medium R&d intensity sectors like the automotive sector (see chapter 4). Figure 1. 1 R&d investment by the top 2000
The 2013 EU Industrial R&d Investment Scoreboard European commission, JRC/DG RTD. The 2013 EU Industrial R&d Investment Scoreboard 23 9 Operating profits as percentage of sales.
Table 1. 2 Overall performance of the 2000 companies in the 2013 Scoreboard. Factor EU USA Japan Other countries No. of companies 527 658 353 462 R&d in 2012, € bn 158.0 189.4 102.7 89.4 World
The 2013 EU Industrial R&d Investment Scoreboard. European commission, JRC/DG RTD. 24 The 2013 EU Industrial R&d Investment Scoreboard 1. 2. 1 Long-term performance of companies by world region The annual
growth rates of R&d investment and net sales and the profitability of companies based in the EU, the US and Japan is provided respectively in figures 1. 2, 1. 3 and 1. 4 for the period 2004-2012.
These figures are based on our history database comprising R&d and economic indicators over the whole 2004-2012 period for 1017 companies (EU 248, US 358 and Japan 241.
The 2013 EU Industrial R&d Investment Scoreboard. European commission, JRC/DG RTD. The 2013 EU Industrial R&d Investment Scoreboard 25 Figure 1. 2. One-year R&d investment and net sales growth and profitability by the EU companies.
-15%-10%-5%0%5%10%15%20%2005 2006 2007 2008 2009 2010 2011 2012 R&d investment net sales profitability Note:
for 388 EU out of the 2000 companies with R&d and net sales data for the whole period Source:
The 2013 EU Industrial R&d Investment Scoreboard European commission, JRC/DG RTD. Figure 1. 3. One-year R&d investment and net sales growth and profitability by the US companies.
-15%-10%-5%0%5%10%15%20%2005 2006 2007 2008 2009 2010 2011 2012 R&d investment net sales profitability Note:
for 547 US out of the 2000 companies with R&d and net sales data for the whole period Source:
The 2013 EU Industrial R&d Investment Scoreboard European commission, JRC/DG RTD. 26 The 2013 EU Industrial R&d Investment Scoreboard 1. 2. 2
%)Figure 1. 4. One-year R&d investment and net sales growth and profitability by the Japanese companies.
-15%-10%-5%0%5%10%15%20%2005 2006 2007 2008 2009 2010 2011 2012 R&d investment net sales profitability Note:
The 2013 EU Industrial R&d Investment Scoreboard European commission, JRC/DG RTD. The 2013 EU Industrial R&d Investment Scoreboard 27 Box 1. 1. Grouping of industrial sectors according to R&d intensity (R&d as%of net sales) High R&d intensity
sectors (intensity above 5%)include e g. Pharmaceuticals & biotechnology; Health care equipment & services; Technology hardware & equipment;
Figure 1. 5 R&d investment trends by the Scoreboard companies for main world regions 0 50 100 150 200 2012 2004 2012 2004 2012
2004 2012 2004 Row-311 Japan-332 US-564 EU-352 R&d investment (Euro bn) world region-number of companies low
The 2013 EU Industrial R&d Investment Scoreboard European commission, JRC/DG RTD. 28 The 2013 EU Industrial R&d Investment Scoreboard 1. 2. 3
The 2013 EU Industrial R&d Investment Scoreboard 29 Figure 1. 6 Employment trends by the Scoreboard companies for main world regions. 0 5 10 15
The 2013 EU Industrial R&d Investment Scoreboard European commission, JRC/DG RTD. 30 The 2013 EU Industrial R&d Investment Scoreboard The 2013 EU Industrial
R&d Investment Scoreboard 31 2. Top R&d investing companies This chapter describes the performance of individual companies,
Results of the top 100 companies, accounting for 54.6%of the total R&d investment by the 2000 companies, confirm the continued recovery of industrial R&d investment.
72 increased R&d investment (vs. 75 in 2011), including 30 companies with double-digit R&d growth;
%A number of the large increases are for companies that have made substantial acquisitions. 32 The 2013 EU Industrial R&d Investment Scoreboard General trends In the 2013 Scoreboard 111 companies have an R&d
investment of more than € 1. 0bn (31 from the EU and 40 from the US) while 55 have R&d exceeding € 2. 0bn (18 from the EU and 21 from the US).
and account for 13.3%of the total R&d investment by the 2000 Scoreboard companies. This year, the top R&d investor is the German company Volkswagen (€ 9. 5bn)
The top 100 companies invested € 295.4 billion, accounting for 54.6%of the total R&d investment by all the 2000 Scoreboard companies,
Seventy-one companies in the top 100 have shown positive R&d investment growth. Among them, 30 companies had double-digit R&d growth
Among these, three companies decreased R&d investments and net sales by more than 10%:%Renesas, Japan; Nokia, Finland and Vale, Brazil.
the figures of VOLKSWAGEN include those of its new subsidiary PORSCHE that in 2011 reported €1046 of R&d investment.
The 2013 EU Industrial R&d Investment Scoreboard 33 R&d changes driven by Mergers and Acquisitions (M&as) The growth in R&d investment may
either be driven organic or by M&as, or it may be a combination of the two. M&as (or demergers) may take place within
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India and Brazil (see table 2. 3). The 2013 EU Industrial R&d Investment Scoreboard 35 Figure 2. 1. The world's top 50 companies by their total
R&d investment (€m) in the 2013 Scoreboard. 0 1 000 2 000 3 000 4 000 5 000 6 000 7 000
, USA 3. MICROSOFT, USA 2. SAMSUNG ELECTRONICS, South korea 1. VOLKSWAGEN, Germany R&d investment (Euro million) USA EU Japan South korea Switzerland
The 2013 EU Industrial R&d Investment Scoreboard. European commission, JRC/DG RTD. 36 The 2013 EU Industrial R&d Scoreboard Rank in 2012 Company Rank change 2004-2012 1 VOLKSWAGEN up 7
The 2013 EU Industrial R&d Investment Scoreboard 37 Table 2. 3. Ranking of companies among the top 100 R&d investors that achieved the best performance over the last 10 years*.
increased simultaneously R&d investment and net sales by more than 200%from 2004 to 2012 and had positive operating profits in 2012.
The 2013 EU Industrial R&d Investment Scoreboard. European commission, JRC/DG RTD. 38 The 2013 EU Industrial R&d Scoreboard The 2013 EU Industrial R&d Investment Scoreboard 39 3. R&d distribution
by industrial sector This chapter presents the main R&d trends among Scoreboard companies aggregated by industrial sectors11.
It comprises the ranking of sectors by their level of R&d investment, R&d intensities, rates of R&d growth and the comparison of such trends across world regions.
Key findings Companies from three out of the top five sectors by level of R&d investment increased R&d above the world average of 6. 2%
represented by the share of sectors within the regions'total R&d investment, is given in figure 3. 2. R&d investment in the Scoreboard remains highly concentrated by sectors:
Out of 40 industrial sectors, the top three Pharmaceuticals & Biotechnology, Technology Hardware & Equipment and Automobiles & Parts account for 50.2%of the total R&d investment by the Scoreboard companies;
slightly increasing its R&d share of the total R&d investment which is now 18.1%.%It is followed by the Technology Hardware & Equipment sector with a share of 16.4%(similar to last year's 16.6%)and the Automobile & Parts sector with 15.7%,slightly higher than the 15.0%of last year.
The R&d specialisation (share of R&d investment) of the main regions in the top 3 sectors are:
The following points are observed for the top 15 sectors accounting for 92.1%of the total R&d investment of the Scoreboard companies:
%and Technology Hardware & Equipment(-2. 3%).The 2013 EU Industrial R&d Investment Scoreboard 41 Among the companies based in the US,
The alternative energy sub-sector that has shown a substantial increase of R&d investment over the past years sharply reduced R&d in 2012(-26.1%).
Health care Equipment & Services Oil & Gas Producers Fixed Line Telecommunications Banks Food Producers R&d investment 2012 (€ bn) EU USA Japan
The 2013 EU Industrial R&d Investment Scoreboard European commission, JRC/DG RTD. 42 The 2013 EU Industrial R&d Scoreboard Figure 3. 2. R&d
The 2013 EU Industrial R&d Investment Scoreboard European commission, JRC/DG RTD. The 2013 EU Industrial R&d Investment Scoreboard 43 Table 3. 1. Ranking of top 15 industrial sectors by overall one-year R&d growth for the EU
, US and Japanese companies in the 2013 Scoreboard. Rank Sector Overall oneyear R&d growth(%)EU-527 R&d change(%)1 year 3 years US-658 R&d change(%)1 year 3 years
The 2013 EU Industrial R&d Investment Scoreboard. European commission, JRC/DG RTD 44 The 2013 EU Industrial R&d Scoreboard R&d intensity by sector Table 3. 2 provides the list of industrial sectors ranked by worldwide
Some industrial sectors increased their R&d intensity as R&d investment increased more than net sales in 2012,
R&d Investment Scoreboard 45 Table 3. 2. Ranking of industrial sectors by overall R&d intensity for the EU
The 2013 EU Industrial R&d Investment Scoreboard. European commission, JRC/DG RTD 46 The 2013 EU Industrial R&d Scoreboard Growth of net sales and profitability by industrial sector Table 3. 3 shows the ranking
The 2013 EU Industrial R&d Investment Scoreboard 47 Table 3. 3. Ranking of top 15 industrial sectors by overall one-year sales growth for the EU
The 2013 EU Industrial R&d Investment Scoreboard. European commission, JRC/DG RTD 48 The 2013 EU Industrial R&d Scoreboard Changes in indicators by region and sector groups It is interesting to see the distribution of R&d investment of the Scoreboard companies across regions
and sectors using an aggregation of the 40 industrial sectors into four groups of high-,medium-high,
-medium-low-and low-R&d intensity (see Box 1. 1 in chapter 1). The worldwide and domestic distribution of the R&d investment by the 2000 Scoreboard companies shows clear
Two sectors, Automobiles & Parts and Industrial Engineering, account for almost 70%of the total R&d investment of the EU's medium-high R&d intensity group.
Technology Hardware & Equipment and Software & Computer Services, account for almost 90%of the total R&d investment of the US's high R&d intensity group.
The 2013 EU Industrial R&d Investment Scoreboard. European commission, JRC/DG RTD The 2013 EU Industrial R&d Investment Scoreboard 49 4. The top 1000 R&d investors in the EU This chapter discusses the R&d
and economic trends of companies based in Members States of the EU. This specific analysis is extended based on an sample of companies representing the top 1000 R&d investors in the EU,
and 473 additional companies based in the EU. The main questions addressed are firstly about the one-year changes in R&d and economic indicators of companies based in the top 10 Member States by level of R&d investment.
and lower reaches of the top 1000 EU Scoreboard companies across the 6 largest sectors in terms of R&d investments.
The 2013 EU Industrial R&d Investment Scoreboard. European commission, JRC/DG RTD. A closer look at the lower reaches of the EU Scoreboard companies (i e.
The 2013 EU Industrial R&d Investment Scoreboard 51 Co in the top 10 EU Member States With respect to the sector distribution of R&d intensity by country, the following
The 2013 EU Industrial R&d Investment Scoreboard European commission, JRC/DG RTD. 52 The 2013 EU Industrial R&d Scoreboard (compared to that of the top 527 EU companies),
Similar cases occur in Finland where Nokia's R&d investment accounts for almost 74%of the total R&d by Finnish companies and in Ireland with Seagate The 2013 EU Industrial R&d Investment Scoreboard
The 2013 EU Industrial R&d Investment Scoreboard. European commission, JRC/DG RTD. Long-term performance of companies based in the 3 top EU Member States The annual growth rates of R&d investment and net sales and profitability of companies based in Germany,
France and the UK is provided respectively in figures 4. 2, 4. 3 and 4. 4 for the period 2004-2012.
Companies based in Germany seem to have recovered the levels of growth of R&d investment and net sales prior to the crisis. 54 The 2013 EU Industrial R&d Scoreboard Since 2012,
-10%-5%0%5%10%15%20%25%2005 2006 2007 2008 2009 2010 2011 2012 nominal growth R&d investment
The 2013 EU Industrial R&d Investment Scoreboard European commission, JRC/DG RTD. The 2013 EU Industrial R&d Investment Scoreboard 55 Figure 4. 3 Annual R&d and net sales growth and profitability*by The french companies-10%-5%0
%5%10%15%20%25%2005 2006 2007 2008 2009 2010 2011 2012 nominal growth R&d investment net sales profitability Note:
for 81 French out of the EU1000 companies with data for the whole period*Profitability expressed as companies'profits as percentage of net sales Source:
The 2013 EU Industrial R&d Investment Scoreboard European commission, JRC/DG RTD. Figure 4. 4 Annual R&d and net sales growth and profitability*by the UK companies Note:
The 2013 EU Industrial R&d Investment Scoreboard European commission, JRC/DG RTD. 56 The 2013 EU Industrial R&d Scoreboard R&d intensity trends by companies
the average R&d intensity of the EU-1000 companies increased slightly because of the higher increase of R&d investments compared to that of net sales,
The 2013 EU Industrial R&d Investment Scoreboard European commission, JRC/DG RTD. The 2013 EU Industrial R&d Investment Scoreboard 57 5. Sector focus:
Health & biotechnology 2005-13 This chapter reviews the healthcare sector and focuses on therapeutic biotechnology and pharmaceuticals and analyses the role of the Scoreboard companies operating in this industry.
The 2013 EU Industrial R&d Investment Scoreboard 59 The business response of the big pharmaceutical companies to the challenges of patent expiries, increased regulation, reduced R&d productivity (because of the increasing
18,832 67,986 17,269 104,087 R&d investment, € m 1, 190 10,300 445 12,000 Net sales, € m 5, 450 40,100 4, 890 50
589,294 529,622 1, 714,922 R&d investment, € m 26,500 33,700 27,500 87,700 Net sales, € m 192,000 225,000 208,000 624,000 R&d
intensity(*)14%15%13%14%Profitability(*)19%23%16%19%The 2013 EU Industrial R&d Investment Scoreboard 61 Given the large number
The 2013 EU Industrial R&d Investment Scoreboard 63 Table 5. 3 Top 25 Biotechnology specialised R&d investors in 2005 seven year later
The message of this chapter is that large pharmaceutical companies have adopted two strategies in the last decade to overcome the challenges outlined in section 2. The first was The 2013 EU Industrial R&d Investment Scoreboard 65 the acquisition
The 2013 EU Industrial R&d Investment Scoreboard 67 6. Company foreign direct investments This chapter looks at the foreign direct investments (FDIS) of Scoreboard companies as a proxy
FDI is defined as an investment made to acquire lasting interest in enterprises operating outside of the economy of the investor.
the number of greenfield projects greatly surpasses the number of M&a projects (World Investment Report, UNCTAD, 2012).
Greenfield Foreign Direct Investments consist in the expansion of existing facilities or a direct investment in new facilities (in an area where no previous facilities exist).
Greenfield FDIS are the primary objective of a host nation's promotional efforts, as they create new production capacity
The EU attracts more technological intensive projects than resource-saving investments compared to the other economies.
the developer is hired to finish the entire project without owner input. 13 Sample corresponding to the 2012 EU Industrial R&d Investment Scoreboard edition. 14 Greenfield investment data is derived from the 2013 fdi
which accounts for more than 110,000 greenfield investment projects around the world for the period 2003-2011.
For the purpose of the analysis, intra-European FDIS and intrastate US investments are excluded. The breakdown of FDIS by activity and geographical area and the growth rates over the period of the different categories of investments (manufacturing, R&d and others) are presented in Table 6. 1. Greenfield FDIS in manufacturing activities represent the highest share
both in terms of value (60%of total capital investments) and number of projects (39%.%The shares for FDIS on R&d are 5%and 12%respectively.
Table 6. 1: Decomposition of FDIS by activity FDI type N. of projects € bn Manufacturing 10514 1219 Sales & Marketing 4311 36 Research & development 3342 97 Retail
The 2013 EU Industrial R&d Investment Scoreboard, European commission, JRC/DG RTD. The 2013 EU Industrial R&d Investment Scoreboard 69 Looking at the geographical distribution, top EU R&d investors appear as the main source of greenfield FDIS, both in terms of
value (42%of the total versus 25%for their US counterparts) and of number of projects (36%versus 30%for US top R&d investors.
Table 6. 2 highlights the top 10 European (red) and non-European (black) countries responsible for the larger shares of worldwide direct investment flows.
The table reports the number of investment projects, estimated capital expenditure (in billions of Euro) and estimated number of jobs created (in thousands).
The 2013 EU Industrial R&d Investment Scoreboard, European commission, JRC/DG RTD. 15 Analysing a different sample,
similar results have been reported by the"Foreign direct investment statistics"(Eurostat), http://epp. eurostat. ec. europa. eu/statistics explained/index. php/Foreign direct investment statistics. 70 The 2013 EU Industrial R&d Scoreboard The two top investing countries
The 2013 EU Industrial R&d Investment Scoreboard, European commission, JRC/DG RTD. Table 6. 4 displays in more detail the destination of the 856 FDI projects in R&d made by the EU Scoreboard companies during the period 2003-2012.
The main destinations are the BRICS (49%of projects and 48%of the total capital investment) and the US (18%and 21%,respectively.
The 2013 EU Industrial R&d Investment Scoreboard 71 Table 6. 4: Where do EU Companies locate R&d investment?
Source N. of projects Capex (€ bn) USA 1730 48.8 EU 856 25.4 Japan 383 8. 2 Switzerland 134 6. 6
The 2013 EU Industrial R&d Investment Scoreboard, European commission, JRC/DG RTD. Table 6. 5: From which companies do EU receive FDI in R&d?
The 2013 EU Industrial R&d Investment Scoreboard, European commission, JRC/DG RTD. 72 The 2013 EU Industrial R&d Scoreboard Figure 6. 6 compares the inflows
we observe that the EU has a larger share of the more knowledge-intensive projects (R&d) than resource-saving investments (manufacturing).
The 2013 EU Industrial R&d Investment Scoreboard, European commission, JRC/DG RTD. The 2013 EU Industrial R&d Investment Scoreboard 73 Sector distribution of FDIS in R&d The identification of the key industrial sectors in which the top R&d spenders of the Scoreboard allocate their investments
abroad has been made on the basis of a sample of companies for which data is available for the period 2003-2012.
This confirms the importance of such investments as drivers for knowledge enhancement. In the EU, this percentage reduces to 83%.
The 2013 EU Industrial R&d Investment Scoreboard, European commission, JRC/DG RTD. 16 The other types of FDIS are:
As the graph shows, most of the investments in R&d (60%of the total capital investment of €97. 0bn) are concentrated in ICT (production and services), Pharmaceuticals & Biotechnology,
The 2013 EU Industrial R&d Investment Scoreboard, European commission, JRC/DG RTD. The main actors of this knowledge-seeking type of investment are the US and EU, Japan mainly for the automobiles industry and Switzerland for ICT production and Pharmaceuticals.
This suggests that advanced economies are getting access to technological complementary knowledge by investing abroad. 17 The role and internationalisation strategies of multinational companies in innovation,
R&d Investment Scoreboard 75 Annex 1-Background information The Scoreboard is part of the European commission's monitoring activities to improve the understanding of trends in R&d investment by the private sector
It was created in response to the Commission's Research Investment Action Plan18, which aims to help close the gap between the EU's R&d investment and that of other developed economies.
The annual publication of the Scoreboard is intended to raise awareness of the importance of R&d for businesses
and to encourage firms to disclose information about their R&d investments and other intangible assets. The data for the Scoreboard are taken from companies'publicly available audited accounts.
the company's whole R&d investment in the Scoreboard is attributed to the country in which it has registered its office19.
which provides reliable up-to-date information on R&d investment and other economic and financial data, with a unique EU-focus.
Companies can use the Scoreboard to benchmark their R&d investments and so find where they stand in the EU and in the global industrial R&d landscape.
Investors and financial analysts can use the Scoreboard to assess investment opportunities and risks. 18 Investing in research:
government and business organisations can use R&d investment information as an input to policy formulation or other R&d-related actions.
The 2013 EU Industrial R&d Investment Scoreboard 77 Annex 2-Methodological notes The data for the ranking of the 2013 EU Industrial R&d Scoreboard (the Scoreboard) have been collected from companies
The R&d investment included in the Scoreboard is the cash investment which is funded by the companies themselves.
It also excludes the companies'share of any associated company or joint venture R&d investment when disclosed.
the additions to the appropriate intangible assets are included to calculate the cash investment and any amortisation eliminated.
relies on disclosure of R&d investment in published annual reports and accounts. Therefore, companies which do not disclose figures for R&d investment
or which disclose only figures which are not material enough are included not in the Scoreboard.
Due to different national accounting standards and disclosure practice, companies of some countries are less likely than others to disclose R&d investment consistently.
The R&d investment disclosed in some companies'accounts follows the US practice of including engineering costs relating to product improvement.
and the impact of this practice is a possible overstatement of some overseas R&d investment figures in comparison with the EU. Where R&d income can be identified clearly
so that the R&d investment included in the Scoreboard excludes R&d undertaken under contract for customers such as governments or other companies.
This means a possible overstatement of some R&d investment figures in the Scoreboard for companies with directly R&d related income where this is not disclosed in the annual report.
The focus of the Scoreboard on R&d investment as reported in group accounts means that the results can be independent of the location of the R&d activity.
and Capex investment to be related to outputs such as Sales, Profit, productivity ratios and market capitalisation.
and the sectoral classification they use (BERD follows NACE, the European statistical The 2013 EU Industrial R&d Investment Scoreboard 79 classification of economic sectors,
For many highly diversified companies, the R&d investment disclosed in their accounts relates only to part of their activities,
Unless such groups disclose their R&d investment additional to the other information in segmental analyses
/80 The 2013 EU Industrial R&d Scoreboard Glossary of definitions 1. Research and development (R&d) investment in the Scoreboard is the cash investment funded by the companies themselves.
It also excludes the companies'share of any associated company or joint venture R&d investment. being disclosed that in the annual report and accounts,
USA $ 1. 2939 $ 1. 32 Taiwan $ 39.1696 $ 38.28 The 2013 EU Industrial R&d Investment Scoreboard 81 based on
the additions to the appropriate intangible assets are included to calculate the cash investment and any amortisation eliminated. 2. Net sales follow the usual accounting definition of sales,
sales are defined as Gross premiums written plus any banking income. 3. R&d intensity is the ratio between R&d investment and net sales of a given company or group of companies.
or year end employees if average not stated. 82 The 2013 EU Industrial R&d Scoreboard The 2013 EU Industrial R&d Investment Scoreboard 83 Annex 3 Composition of the top
and additional 473 companies also ranked by level of R&d investment. The composition by country and industry of the EU 1000 sample is presented in the table A3. 1 below.
16 2 5 12 18 1 4 1 6 4 76 Equity Investment Instr. 1 1 Financial services 4 1 6
4 2 18 29 1 1 4 5 3 1 11 1 111 Real estate Investment & Services 1 1 2 Software
2013 EU Industrial R&d Investment Scoreboard 85 Annex 4-Access to the full dataset The 2013 Scoreboard comprises two data samples:
The top 1000 R&d investing companies based in the EU with R&d investment exceeding €5. 2m.
R&d investment Net sales Capital expenditure Operating profit or loss Total number of employees Main company indicators (R&d intensity, Capex intensity, Profitability) Growth rates of main
The 2013 EU Industrial R&d Investment Scoreboard Authors: Héctor Hernández, Alexander Tübke, Fernando Hervás, Antonio Vezzani, Sara Amoroso, Mafini Dosso Luxembourg:
of the 2013"EU Industrial R&d Investment Scoreboard"(the Scoreboard. The Scoreboard contains economic and financial data for the world's top 2000 companies ranked by their investments in research and development (R&d.
The sample consists of 527 companies based in the EU and 1473 companies based elsewhere.
In this Scoreboard edition, world top R&d investors show a remarkable resilience of R&d investment growth in a period of economic uncertainty.
In 2012, companies continued to increase significantly their R&d investments in a context marked by a slow down of net sales growth and a decline in operating profits.
Trends observed show a significant variation of R&d investment and economic results across industries and sectors.
The 2013 EU Industrial R&d Investment Scoreboard 87
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