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

2. 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.

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4. 4 Research and development expenditure: % of GDP 200120072011 EU (28 countries)1.861.842.04 United States2.62 2.67 China (except Hong Kong)0.951.401.84 Japan3.073.46n.a South Korea2.473.21n.a

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6. 6 Research and development expenditure: % of GDP 200120072011 EU (28 countries)1.861.842.04 Belgium2.071.892.21 Bulgaria0.460.450.57 Czech Republic1.161.371.64 Denmark2.392.582.98 Germany2.472.532.89 Estonia0.701.082.37 Ireland1.091.281.66 Greece0.580.600.67 Spain0.921.271.36 France2.202.082.25 Croatian.a.0.800.76 Italy1.081.171.25 Latvia0.410.600.70 Lithuania0.670.810.91 Hungary0.930.981.22 Netherlands1.931.812.03 Austria2.052.512.77 Poland0.620.570.76 Portugal0.771.171.52 Romania0.390.520.50 Slovenia1.491.452.47 Slovakia0.630.460.68 Finland3.323.473.80 Sweden4.133.433.39 United Kingdom1.771.751.78

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8. Annual rates of change of business R&D* 8 200620072008200920102011 EU285.493.523.70-2.101.906.08 Germany6.142.846.17-3.432.877.69 Spain14.9810.006.05-6.50-0.97-1.55 France4.010.931.662.482.784.10 Italy2.5612.425.00-1.303.000.84 UK4.686.21-1.17-3.62-0.326.08 * Basic values= € M. at constant prices (2010) by applying GDP deflators

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10. 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 2010. 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. 11 R&D intensity on value added by industry (average 1980-2002) 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 & Tobacco1.20.60.91.10.30.4 Textile, Clothing & Leather0.61.20.70.30.10.3 Wood & Wood Products1.1 0.3 0.1 Paper, Printing & Publishing0.80.3 0.10.2 Chemicals & Pharmaceuticals12.713.412.716.15.93.5 Rubber & Plastics Products2.72.54.00.91.61.3 Non-metallic Mineral Products2.31.8 1.20.20.4 Basic Metals & Metal Products1.51.81.61.00.6 Machinery & Equipment N.E.C.15.05.73.84.61.41.8 Electrical & Optical Equipment18.212.317.313.87.65.2 Transport Equipment21.714.520.313.911.13.9 Other manufacturing industries1.50.70.90.80.20.4 Total manufacturing*8.56.66.55.72.31.5

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

13. 13 R&D expenditures on sales Share of automobile companies on national business R&S 2008201020082010 Volkswagen5.214.9312.8613.32 BMW5.384.756.225.90 Daimler4.634.969.6410.33 PSA Peugeot Citroën4.364.289.219.00 Renault6.124.538.686.48 Fiat3.343.3819.5218.50 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).

14. 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. 15 Business R&D 2011 (source OECD) Expenditure in € million Percentages Italy Small firms (1-49 empl.)10029.26 Medium sized (50-249)152314.07 Large (>=250)830076.67 Total10825100.00 Germany Small firms (1-49 empl.)18863.69 Medium sized (50-249)37297.30 Large (>=250)4546389.01 Total51077100.00 Firms performing systematic R&D (source CIS 2012) NumberPercentages on total firms Average R&D expenditure Italy Small firms (1-49 empl.)70246.99143 Medium sized (50-249)277620.15549 Large (>=250)88438.549389 Total106849.161013 Germany Small firms (1-49 empl.)1360313.50139 Medium sized (50-249)680624.48548 Large (>=250)320249.7714198 Total2361120.252163 Italian Vs. German firms

16. 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