1 Innovation & knowledge indicators  R&D EXPENDITURES  INTERNATIONAL PATENTS  OTHER INDICATORS OF INNOVATION, KNOWLEDGE AND HUMAN CAPITAL

2 Definition of Research and experimental Development (R&D) R&D: comprises creative work undertaken on a systematic basis in order to increase the stock of knowledge. Basic research is experimental or theoretical work undertaken primarily to acquire new knowledge without any particular application or use in view. Applied research is original investigation directed primarily towards a specific practical aim or objective. The knowledge derived from it is often patented but may also be kept secret. Experimental development is a systematic work directed to producing new materials, products and devices; to installing new processes, systems and services; or to improving substantially those already produced or installed.

3

4 Research and development expenditure: % of GDP EU (28 countries) United States China (except Hong Kong) Japan n.a South Korea n.a

5

6 Research and development expenditure: % of GDP EU (28 countries) Belgium Bulgaria Czech Republic Denmark Germany Estonia Ireland Greece Spain France Croatian.a Italy Latvia Lithuania Hungary Netherlands Austria Poland Portugal Romania Slovenia Slovakia Finland Sweden United Kingdom

7

Annual rates of change of business R&D* EU Germany Spain France Italy UK * Basic values= € M. at constant prices (2010) by applying GDP deflators

9

10 R&D intensity: NUTS2 regions The EU ‑ 27 had an R&D intensity ratio of 2.03 % in 2011 (expenditure on R&D was equivalent to 2.03% of GDP.) A total of 30 out of the 260 EU regions shown in Map 11.1 had an R&D intensity above 3% in As such, they exceeded the 3% R&D intensity target set by the Europe 2020 strategy. Among these 30 regions, 10 were in Germany, 5 in the United Kingdom, 4 in Sweden, 3 in Denmark. These regions accounted together for 38.4 % of all R & D expenditure in the EU.

11 R&D intensity on value added by industry (average ) Share of total R&D performed by the most R&D intensive industries: US = 0.78; Germany = 0.78; France = 0.82; UK=0.85; Italy = 0.83; Spain =0.85. USAGermanyFranceUKItalySpain Food, Beverage & Tobacco Textile, Clothing & Leather Wood & Wood Products Paper, Printing & Publishing Chemicals & Pharmaceuticals Rubber & Plastics Products Non-metallic Mineral Products Basic Metals & Metal Products Machinery & Equipment N.E.C Electrical & Optical Equipment Transport Equipment Other manufacturing industries Total manufacturing*

12 Relationship between intensity of business R&D and presence of large R&D performers (2009)

13 R&D expenditures on sales Share of automobile companies on national business R&S Volkswagen BMW Daimler PSA Peugeot Citroën Renault Fiat R&D expenditures of the main automobile companies in Europe Sources: European Commission - Joint Research Centre, Directorate General Research (2009 and 2011) and Eurostat (business R&D in Germany, France and Italy).

Volkswagen This company is the biggest R&D spender of the world: 13.1 € billion in 2014 In Italy the whole business sector spent, in the same year, 11.1 € billion Will this company maintain its R&D attitude also after the crisis due to its misconduct (with respect to environmental regulation)? 14

15 Business R&D 2011 (source OECD) Expenditure in € million Percentages Italy Small firms (1-49 empl.) Medium sized (50-249) Large (>=250) Total Germany Small firms (1-49 empl.) Medium sized (50-249) Large (>=250) Total Firms performing systematic R&D (source CIS 2012) NumberPercentages on total firms Average R&D expenditure Italy Small firms (1-49 empl.) Medium sized (50-249) Large (>=250) Total Germany Small firms (1-49 empl.) Medium sized (50-249) Large (>=250) Total Italian Vs. German firms

General conclusion R&D expenditures and activities are strongly concentrated in particular –geographical areas (metropolitan regions) –industries (science and knowledge based) –firms (large size + science and knowledge based) 16