EU R&D SCOREBOARD

Benchmarking EU Industry Innovation Performance to Help Shape EU Policy

The EU R&D Scoreboard

The "EU Industrial R&D Investment Scoreboard" (the Scoreboard) uses the latest available accounts of the world's top 2.500 R&D investing companies (i.e. for this year's edition usually the fiscal year 2014/15). These companies invested €607.2 billion in R&D in 2014, representing about 90% of the total expenditure on R&D by business worldwide. The Scoreboard complements official territorial statistics (such as BERD) in the study of important questions related to companies' innovation behaviour in a global context. It is a reliable, up-to-date benchmarking tool for comparisons between companies, sectors, and geographical areas, as well as to monitor and analyse emerging investment trends and patterns.

Part 1 of 7

TOP R&D INVESTING COMPANIES BY COUNTRY

Canada
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Companies
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R&D Annual Growth
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Sales Annual Growth

Top 3 investors

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Top 3 investing sectors

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EU

Headquarters' location of EU's top R&D investors. Click on a country for more information.

  • The distribution shows a high concentration among the top five countries Germany, UK, France, Netherlands and Sweden.
  • In terms of country-sector representation, Germany is the largest contributor to Industrial Engineering and Automobiles and Parts, while the UK is the largest contributor to the Software, Hardware and Biopharma sectors. Sweden has a higher representation in Industrial Engineering and Biopharmaceuticals, with France performing well in Software and Technology Hardware where the Netherlands also stands out.

World

Headquarters' location of the world's top R&D investors. Click on a country for more information.

  • Each of the World’s Top 2500 R&D investors invested more than €18.0 million in R&D in 2014.
  • R&D investments growth rate was significantly higher than the revenues’ growth rate in 2014, following the trend of the previous years.
  • R&D investments and economic results showed important variations across world regions, countries and industries in 2014. This reflects a continued weak and uneven recovery of the global economy from the economic crisis of 2008-2009 and persistent market uncertainties.

Part 2 of 7

KEY FIGURES BY COUNTRY (2013 - 2014)

Key trends world

The overall increase in R&D worldwide in 2014 (in relation to 2013) is led by the growth of companies located in the Rest of the World (+13.1%) and the US (8.1%). Net sales are increasing in all regions apart from the EU, while employment grew in every area except for Japan. Considering all regions in the world, the number of employees of the 2500 companies increased by 1.6%.

Key trends EU

Germany's results reflect to a large extent the performance of the Automobiles & Parts sector (R&D investments and Net sales in the Automobile & Parts sectors represent the 53% of the total investments in R&D made by all German companies and the 34% of their total net sales). The other two largest member states of the EU (UK and France) showed a modest performance. UK’s sales decrease (5.4%) and EU companies net sales decrease (1.0%) was largely due to falls in the prices of oil & gas and mining products which form a larger proportion of the sales.

Part 3 of 7

TOP 10 COMPANIES

World (bn EUR)

1
VOLKSWAGEN [DE] 13.1
2
SAMSUNG [KR] 12.2
3
MICROSOFT [US] 9.9
4
INTEL [US] 9.5
5
NOVARTIS [CH] 8.2
6
GOOGLE [US] 8.1
7
ROCHE [CH] 7.4
8
JOHNSON & JOHNSON [US] 7.0
9
TOYOTA [JP] 6.9
10
PFIZER [US] 6.8

EU (bn EUR)

1
VOLKSWAGEN [DE] 13.1
2
DAIMLER [DE] 5.7
3
ROBERT BOSCH [DE] 5.0
4
SANOFI [FR] 4.8
5
BMW [DE] 4.6
6
SIEMENS [DE] 4.4
7
ASTRAZENECA [UK] 4.2
8
GLAXOSIMTHKLINE [UK] 4.0
9
ERICSSON [SE] 3.9
10
BAYER [DE] 3.7
 
EU
 
US
 
Japan
 
Rest Of The World

Top R&D investors Worldwide

Among the top 10 R&D investors worldwide, there is only one EU based company (Volkswagen), and is dominated by companies located in the US (Microsoft, Intel, Google, Johnson and Johnson, Pfizer) and in the Rest of the World (Samsung, Novartis, Roche). The ranking is completed by a Japanese company (Toyota). Looking at the main sector of activity of the top R&D investors, the majority of them (four) operate in the pharmaceutical and biotech sector, three are ICT (hardware and software) giants, two are car makers, and one belongs to the Electronic & Electrical Equipment sector.

Top R&D investors EU

Among the top 10 R&D investors located in EU countries, the majority of them (six) are located in Germany, two in the UK, one in France and one in Sweden. Not surprisingly (given the importance of the car industry in Europe), four of the first five EU top R&D investors belong to the automotive sector (Volskwagen, Daimler, Robert Bosch, BMW), four are pharmaceutical and biotech companies (Sanofi-Aventis, AstraZeneca, GlaxoSmithKline, Bayer), while the remaining two (Siemens, Ericsson) operate in the Electronic & Electrical Equipment and ICT Hardware sectors respectively.

Part 4 of 7

TOP R&D INVESTORS - INVESTMENTS SHARE BY MAIN WORLD REGION

TOP 2500 R&D investors by main world region

The relative majority of the top R&D investor companies are located in the US (829), followed by the Rest of the World (703), the EU (608) and Japan (360). Focusing the attention on the amount of R&D invested, the US based companies still lead the ranks, but the EU overtakes the Rest of the World. The distribution at country level in the EU shows that Germany, France and the UK are those where the majority of R&D invested is concentrated. Focusing instead on the Rest of the World group, China, Switzerland and South Korea are the leading countries in terms of share of R&D invested.

Part 5 of 7

R&D INVESTMENTS AND NET SALES TRENDS

Annual growth rate

R&D investment and net sales trends over the last 8 years show similar profiles for the four regions considered. In all cases it’s clearly identifiable the effect of the financial crises both on R&D and net sales. Financial crisis effects were more severe for US based companies. However, US based companies have recovered faster and their R&D growth rate is now similar to the one they had before the crisis. The situation is different for EU based companies, whose R&D investment growth rate has not yet reached pre-crisis levels. Moreover, EU based companies registered a negative growth rate of net sales for the last two years.

Part 6 of 7

R&D INVESTMENTS BY SECTOR (2006 vs 2014)

Sectoral patterns

Between 2006 and 2014, R&D investment grew in all geographical areas considered, totalling a companies' R&D world increase of 50.9 %. For EU companies, the main R&D increases were in low (61.0 %) and medium-high (44.4 %) R&D-intensive sectors. For US companies, the main increases were in medium-low (97.3 %, but these represent a small proportion of total R&D) and high (67.3 %) R&D-intensive sectors. For Japanese companies, the main R&D increases were in medium-high (14.8 %) and medium-low (3.1 %) R&D-intensive sectors. For companies based in the rest of the world, the main R&D increases were in low (169.7 %) and medium-high (141.6 %) R&D-intensive sectors.

Part 7 of 7

R&D INVESTMENT, NET SALES AND R&D INTENSITY (KEY SECTORS)

R&D comparison EU-US

US-based companies tend to invest much more than their EU-based counterparts (with the exception of the automotive sector). While the gap is modest in the Pharmaceutical sector, it becomes rather consistent in Biotechnology and ICT related industries. Looking at the R&D intensity (the ratio between R&D invested and net sales), we find that the gap in R&D investments in key sectors like Biotechnology or ICT related industries is not due to a different propensity to invest, but rather to the significantly different size of these sectors on the two sides of the Atlantic. In fact, the US has 3 times more companies and 3 times more R&D investment than the EU in high R&D-intensive industries such as Health and ICT. However, the US has only 36% more total R&D than the EU in the Scoreboard.

© EU 2015 | EU Scoreboard | Sources: The 2015 EU Industrial R&D Investment Scoreboard, European Commission, JRC/DG RTD