Figure 2a - Gross expenditure on R&D (GERD), 2001 Figure 2b - Defence R&D in government budgets,
20020,00,51,01,52,02,53,03,54,04,5GRCPRTESPITAIREUKNLDAUTEU 1 5BELFRADKDEUFI NSW EUSA0,00,51,01,52,02,53,03,54,04,5To t al expenditure Estimated civil expenditure% o f G D P % o f G D P051015202530354045505560AUTIRE*BELDKGRCFI NNLD*PRTITA*DEU
EU 1 5 *SW EFRAUK
ESP*USA00,10,20,30,40,50,6Defence R&D budget, per cent of total government R&D budget
Defence R&D budget, per cent of GDP% of R&D budget % o f G D PNotes: Figure a: Estimated civil expenditure on R&D is given by total R&D expenditure minus expenditure on defence and military.
Figure b: Data illustrated is GBAORD data, government budget appropriations or outlays for R&D. *) 2001 numbers.
Source: OECD, STI Scoreboard 2003.
Government spending on R&D, however, varies a great deal across EU countries. But since
some countries might have more urgent problems it is not certain that they should focus on
reaching the target of 3 pct.
Although the Barcelona target is a spending target it should be remembered that just by
increasing R&D funds the outcomes do not necessarily follow.
The paper starts with introducing some definitional aspects mainly drawing on recommendations
from the Frascati manual. Next, borderline issues are discussed. Are, for instance, PhD students
researchers or purely students? Thirdly, which part is the important part when registering
investments in R&D, the funder or the performer? Fourthly, what is the outcome of R&D? It
turns out that different studies get different results depending on method and data used. The last
part looks into different kinds of indicators that help shed some light on the output of R&D. The
indicators will primarily be analysed by comparing with the US.
3. Definition of R&D and innovation
According to the well known Frascati Manual^1 R&D is defined as follows:
Research and experimental development (R&D) comprise creative work undertaken on a
systematic basis in order to increase the stock of knowledge, including knowledge of man,
culture and society, and the use of this stock of knowledge to devise new applications.
R&D covers three activities:
- Basic research which is experimental or theoretical work undertaken primarily to acquire
new knowledge of the underlying foundation of phenomena and observable facts, without
any particular application or use in view. - Applied research which is original investigation undertaken in order to acquire new
knowledge. It is, however, directed primarily towards a specific practical aim or objective.
(^1) OECD (2002).