Electronics Industry Still the Driver of R&D in Finland

Telecom&Mobility statistics

Helsinki, 10 December, 2004 — Electronics Industry Still the Driver of R&D in Finland

In 2003, expenditure on research and development grew by close on EUR 200 million in Finland and exceeded EUR 5 billion. However, according to Statistics Finland, R&D expenditure is estimated to decrease in 2004. The share of the electronics industry of the whole enterprise sector's R&D expenditure reached the record size of 56 per cent in 2003.

The data derived from Statistics Finland's statistics on research and development activity in Finland in 2003.

The GDP share of R&D expenditure is high in Finland by international comparison. Among the OECD countries, only Sweden had a higher GDP share (4.3%) than Finland. The shares of Japan (3.1%), Iceland (3.1%), South Korea (2.9%) and the United States (2.7%) were approaching that of Finland. The share was the highest in Israel where expenditure on R&D amounted to 4.7 per cent of GDP in 2002.

Electronics industry represents over a half of the whole enterprise sector's R&D expenditure.

The R&D expenditure of business enterprises exceeded slightly EUR 3.5 billion in 2003. This represents a growth rate of 4.5 per cent, whereas in 2002 the respective rate was 2 per cent. The growth is explained by the electronics industry. Without the additional input of the electronics industry business enterprises' R&D expenditure would have declined.

In the service industries, business services increased clearly their investments in R&D, and data processing services also showed slight growth.

Almost EUR 190 million was invested in biotechnology in 2003. This is the first time Statistics Finland recorded R&D expenditure on biotechnology in these statistics.

Growth Will Continue in the University Sector

In the university sector, R&D expenditure reached nearly EUR 980 million in 2003, which represents 5.5 per cent growth. It is estimated that the growth in 2004 will also amount to more than EUR 50 million. The share of the university sector of all money invested in R&D has been increasing since the year 2000.

By contrast, R&D expenditure in the rest of the public sector fell by EUR 14 million to EUR 515 million in 2003, and is estimated to decline even slightly further in 2004.

Tero Luhtala
+358 9 1734 3327

Vesa Hämäläinen
+358 9 1734 2594

More information