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

The indicator captures the formal creation of new knowledge within firms. It is particularly important in the science-based sector (pharmaceuticals, chemicals and some areas of electronics) where most new knowledge is created in or near R&D laboratories.

The indicator is obtained as a quotient.

Numerator:

All R&D expenditures in the business sector (BERD), 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

Source: Eustat