1. 1 Key Figures 2007 on Science Technology and Innovation From the pre-publication of DG RTD Key Figures 2007 Andrea Tilche Ad Hoc Group on Innovation in the European Chemicals Industry

2. 2 Why does R&D matter? 3% Action Plan (2003); Each Member State has set its own target for increased R&D intensity; Green Paper on ERA (2007);

3. 3 Key Figures 2007 Presents data up to 2005, thus predating the recently renewed commitments made by Member States to increase their R&D intensity Shows that recent policy initiatives and commitments are more than ever valid, and should be reflected by intensification of pace of reforms

4. 4 The landscape is changing

5. 5 12.7 25.0 29.1 3.6 3.5 34.4 38.4 2.9 11.4 15.9 10.1 13.0 0 10 20 30 40 50 60 70 80 90 % 19932005 World shares of expenditure on R&D

6. 6 Exports of High - tech products EU-27 (1) JP CN US KR 0 5 10 15 20 25 30 1999200020012002200320042005 %

7. 7 China leads computing exports EU-27 (1) JP CN US KR 0 5 10 15 20 25 30 1999200020012002200320042005 %

8. 8 EU R&D-intensity remains at structural lower level

9. 9 Stagnating R&D intensity in the EU

10. 10 Although some MS recorded impressive progress Progress not monopoly of ‘catching-up’ countries (e.g.CZ) Also high R&D intensive countries were able to further increase their high R&D intensity

11. 11 R&D intensity: 4 groups of countries

12. 12 Distance-to-target for each individual Member State

13. 13 The gap is mainly in the private sector

14. 14 Is low R&D-intensity a result of lack of dynamism of EU’s industrial structure ?

15. 15 85% gap is due to low business investment structural differences between EU-US – medium-tech industries dominate in the EU

16. 16 Sectoral composition of R&D in EU and US (2005)

17. 17 BERD (Business enterprise expenditure on R&D) and Value Added

18. 18 BERD as % of Value Added

19. 19 BERD of SMEs However, R&D intensity is 0.34% in the EU and 0.68% (the double) in the US

20. 20 Share of World top 1000 Companies (in terms of market capitalisation) created since 1980 0% 5% 10% 15% 20% 25% EUUS Substantial differences in growth path of high-tech SME’s … 70% of these US large C ies created after 1980 are active in ICT sectors

21. 21 Public and private R&D are fully complementary

22. 22 Countries with high involvement of private sector in funding of R&D have also the highest levels of government- funded R&D

23. 23 Research Excellence: EU remains second behind the US, but scores relatively well in traditional disciplines

24. 24 Research excellence: the EU is world’s first producer of scientific knowledge

25. 25 Citation index

26. 26 However, … Other parts of the world are getting to be more specialised in chemistry

27. 27 US universities top the rankings of world’s largest universities Top 100 world’s largest universities, ranked according to citation impact scores of scientific output Only 12 EU-27 universities in top-100; against 78 US universities

28. 28 Knowledge flows from Science to Technology weaker in the EU

29. 29 Technological innovations rely more on US science than on EU science This graph: Share of EU and US scientific publications cited in biotech patents Data in other technological fields show similar patterns

30. 30 From Science to high- tech, high-growth industries: the case of nanotechnology

31. 31 Public funding of nanotech R&D similar or higher than competitors

32. 32 Nanotech companies are bigger in the US Average size of Nanotech companies in leading countries (turnover in US$ million)

33. 33 Key Figures 2007 on Science Technology and Innovation