2009 global research outlays down, but not China

Oct 26, 2010 By ROBERT WIELAARD , Associated Press

(AP) -- The economic crisis cut corporate research and development spending 1.9 percent worldwide in 2009 but China defied the trend, increasing its research investments by a whopping 40 percent.

Sharp drops in 2009 research spending in Europe and the United States were balanced out by a hefty rise in Asia, according to European Union data released Tuesday.

It showed that research and development investments by European companies fell 2.6 percent in 2009 as their sales declined 10.1 percent.

Research spending by U.S. corporate giants fell 5.1 percent in 2009, according to the EU's annual scoreboard of corporate investments in research and development into new products and services.

Japanese firms held to their high investments in 2009 and companies elsewhere in Asia raised theirs significantly. After , India followed with a researcha and development increase of 27.3 percent, Hong Kong was up 14.8 percent, up 9.1 percent and Taiwan 3.1 percent.

For the second consecutive year, the EU report said, Japanese Toyota was the world's biggest research and development investor with 2009 spending of euro6.8 billion ($9.5 billion). It was followed by Swiss pharmaceutical giant Roche (No. 4 in 2008) with 2009 spending of euro6.5 billion ($9.1 billion) and Microsoft (No. 2 in 2008) with euro6 billion ($8.4 billion).

EU Research Commissioner Maire Geoghegan-Quinn said the gap between European and American companies in areas like software and biotechnology and the rapid rise of Asian-based companies "highlight the innovation emergency Europe is facing."

The EU is pushing its member states to raise research and development spending to 3 percent of the 27-nation bloc's GDP. Today it is 2 percent, compared to 2.6 percent for the US and 3.4 percent for Japan.

Global demand for information and is a market worth euro2 trillion ($2.8 trillion), and Europe accounts for only 25 percent of that, according to EU data.

The scoreboard showed European companies' performance to be weak in key high-tech sectors. American companies invested five times more in research and development for semiconductors, four times more in software research and eight times more in biotechnology.

The EU's scoreboard monitors the world's top 1,400 companies - 400 from the EU and 1,000 from other parts of the world - ranked by in research and developments.

Explore further: Marcellus drilling boom may have led to too many hotel rooms

More information: http://iri.jrc.ec.europa.eu/reports.htm

4.5 /5 (2 votes)
add to favorites email to friend print save as pdf

Related Stories

EU sets out new science plan

Oct 07, 2009

(AP) -- European authorities and industry must increase funding for scientific research and improve cooperation to try to close the technology gap with the United States, the European Commission said Tuesday.

Venture-cap investments decline 7 percent in 3Q

Oct 15, 2010

(AP) -- Venture capitalists poured less money into U.S. startups in the third quarter and split this among more companies, signaling that investors are trying to be more economical with their funds.

Venture capital investments decline in 4th qtr

Jan 22, 2010

(AP) -- Venture capitalists invested less money in U.S. startups in the fourth quarter and showed signs of spreading out those fewer dollars among more companies, reflecting continued caution amid uncertainty about the economy.

Venture-cap investments climb 53 pct in 2Q

Jul 16, 2010

(AP) -- Venture capitalists funneled more money into U.S. startups in the second quarter, indicating continuing confidence that the economy is on the mend.

Report: Worst may be over for US tech market

Jun 30, 2009

(AP) -- As bad as the technology market fared in the first quarter of this year, the worst may be over, at least in the United States, Forrester Research said in a report Tuesday.

Recommended for you

Marcellus drilling boom may have led to too many hotel rooms

Sep 18, 2014

Drilling in Pennsylvania's Marcellus Shale region led to a rapid increase in both the number of hotels and hotel industry jobs, but Penn State researchers report that the faltering occupancy rate may signal that there are ...

Entrepreneurs aren't overconfident gamblers

Sep 17, 2014

Leaving one's job to become an entrepreneur is inarguably risky. But it may not be the fear of risk that makes entrepreneurs more determined to succeed. A new study finds entrepreneurs are also concerned about what they might ...

User comments : 0