The 2014 PREDICT report covers the period 2006-2011 analysing the consequences of the deep recession that began in early 2008 which impacts the first most severe downturn in 2009 for the European Union (EU) ICT sector and its R&D performance. The report found that the EU ICT sector continued losing share in total value added, but gaining the share in terms of employment and BERD intensity. The share of ICT R&D public funding (GBAORD) on total GBAORD also increased in 2010 and 2011. However, as a result of the reverse progress on the value added and employment, ICT sector’s labour productivity showed a downward trend during the observed periods. In terms of sub-sector analysis, the ICT manufacturing and services have both recovered to create additional employment in 2011 even though the impact is less profound for the latter. On international comparison, the US still led in ICT sector productivity and value added in 2011. However, in BERD activities, they are being challenged by four Asian countries: Japan, China, Korea and Taiwan.