Methodological note. EIS: Public R&D expenditures as % of GDP

R&D expenditure represents one of the major drivers of economic growth in a knowledge-based economy. As such, trends in the R&D expenditure indicator provide key indications of the future competitiveness and wealth of the EU. Research and development spending is essential for making the transition to a knowledge-based economy as well as for improving production technologies and stimulating growth.

The indicator is obtained as a quotient.

Numerator:

All R&D expenditures in the government sector (GOVERD) and the higher education sector (HERD). Both GOVERD and HERD according to the Frascati-manual definitions, in national currency and current prices.

Denominator:

Gross domestic product as defined in the European System of Accounts (ESA 2010), in national currency and current prices.