Research Expenditure in Latvia Lags Behind EU Averages
In a recent report by Eurostat, the statistical office of the European Union, provisional data on R&D expenditure for 2022 has been published. The report sheds light on the distribution of R&D spending across various sectors and the R&D intensity rates of EU member countries.
The business enterprise sector was the largest contributor to EU R&D spending, accounting for 66% of the total, amounting to €233 billion. The private non-profit sector, on the other hand, accounted for a smaller 1% of the total, equating to €5 billion. The higher education sector represented 22% of the total, amounting to €76 billion, while the government sector accounted for 11%, totalling €37 billion.
In terms of R&D intensity, or R&D expenditure as a percentage of GDP, the EU saw a slight decrease from 2.27% in 2021 to 2.22% in 2022. Eight EU countries reported an R&D intensity below 1%: Romania (0.46%), Malta (0.65%), Latvia (0.75%), Cyprus, Bulgaria (both 0.77%), Ireland, Slovakia, and Luxembourg.
Ireland, with an R&D intensity close to 1%, and Cyprus, Bulgaria, Slovakia, and Luxembourg all had R&D intensities slightly above the 1% mark. On the other hand, the EU member countries with an R&D intensity of more than 3.5% were Sweden, Austria, and Belgium. Four countries had an R&D intensity of above 3% in 2022: Belgium (3.44%), Sweden (3.40%), Austria (3.20%), and Germany (3.13%).
Interestingly, eight additional countries saw a decrease in their R&D intensity rates in 2022. Ireland (-0.6 pp), Finland (-0.45 pp), Estonia (-0.35 pp), Slovenia (-0.30 pp), Luxembourg (-0.23 pp), Denmark (-0.22 pp), Malta (-0.15 pp), and France (-0.13 pp) all experienced a decrease in their R&D intensity rates.
These findings underscore the importance of continued investment in R&D across the EU, particularly in countries with lower R&D intensity rates. As innovation and technological advancements continue to drive economic growth and competitiveness, it is crucial for EU member states to invest in R&D to stay at the forefront of global innovation.
