Title | Gross Expenditure on Research & Development as a percentage of Gross Domestic Product. |
National Indicator/Target | To at least halve the gap in total R&D spending compared with EU average by 2011. |
Brief Description | Gross Expenditure on R&D ( GERD) comprises that undertaken by business, government and the higher education sector. GERD as % of GDP serves as a general indicator of expenditure in R&D - a technical input to the innovation process. It also demonstrates the strength of the economy in terms of having the required expertise, skills and business environment to undertake R&D activity. |
Strategic Objective(s) to Which Indicator Relates | This indicator informs progress in relation to the Wealthier and Fairer Strategic Objective. R&D spend is an indicator of business confidence and is a key input to the innovation process. Innovation is crucial for businesses to maintain profitability and competitiveness and to provide high value products and services. This indicator also links to the Smarter strategic objective. The indicator covers all R&D, including that undertaken by Universities in Scotland. |
More Detailed Definitions |
Definitions of Keywords | The definition of R&D follows internationally agreed standards defined by the Organisation for Economic Co-operation and Development ( OECD) and published in the Frascati manual. R&D is defined as "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 the stock of knowledge to devise new applications". Gross R&D comprises any expenditure on R&D carried out at businesses, government or higher education institutions in Scotland, irrespective of either ownership or the source of funding for that investment. To halve the gap in total R&D spending is defined as halving the percentage point difference between the Scottish R&D as a percentage of GDP and the EU average R&D as a percentage of GDP. Scottish R&D spending is defined as the sum of Business, Government and Higher Education R&D expenditure in Scotland as published annually by the Office for National Statistics ( ONS). The average R&D as a percentage of GDP for the EU will be as published by OECD in the Main Science and Technology Indicators. The EU average will be based on the EU27. |
Evidence Source | Data on the level of expenditure on Gross R&D in Scotland are published annually by ONS. ONS publish regional gross value added ( GVA) figures (including figures for Scotland) on an annual basis. These figures will be combined by the Scottish Government Enterprise, Energy and Lifelong Learning Analytical Services Division to show Gross R&D as a percentage of GDP, comparable with the OECD figures. Annual figures for the EU27 are published by the OECD as Main Science and Technology Indicators ( MSTI). |
Baseline and Past Trends | The baseline figures used for this target will be for Gross Expenditure on R&D in 2007. Data for Scotland are expected to be published by the Office for National Statistics in June 2009. The 2011 figures will be used as the end point for this target. The 2011 data will become available in June 2013. Chart: Gross R&D as Percentage GDP 
Source: Organisation for Economic Co-operation and Development MSTI
Office for National Statistics The latest data available are for 2004 and show Scottish Gross R&D expenditure as a percentage of GDP at 1.46% in comparison to the EU average of 1.73%. Thus a gap of 0.27 percentage points. The latest five year trend is shown below: |
Methodology | The gap in total R&D spending compared with EU average is calculated by subtracting the Scottish Gross R&D as a percentage of GDP from the EU27 Gross R&D as a percentage of GDP, e.g. in 2004 Scottish Gross R&D was 1.46% of GDP, compared to the EU27 figure of 1.73%, thus the gap between Scotland and EU27 average was 0.27 percentage points. |
Data Ownership and Quality Assurance | Data on the components of Gross R&D expenditure in Scotland are published annually by ONS. ONS also publish regional gross value added ( GVA) figures (including figures for Scotland) on an annual basis. Both sets of figures are National Statistics. EU27 figures are published annually by OECD's Directorate for Science Technology and Industry ( DSTI). |
Publication of Data | Data on the components of Gross R&D expenditure in Scotland are published annually by ONS. These data are then published by the Scottish Government as part of its annual R&D publication: http://www.scotland.gov.uk/Publications/2007/01/BERD2005 The 2004 GERD figures were published in January 2007. The Scottish Government has discussed earlier release of this data by ONS. It is anticipated that ONS will be able to provide the Scottish Government with data by June each year, which will bring forward the publication date for Scottish figures. The 2007 data is therefore expected to be published in June 2009. EU figures are published annually by OECD's Directorate for Science Technology and Industry ( DSTI) in the Main Science and Technology Indicators release. http://www.oecd.org/document/26/0,3343,en_2649_33703_1901082_1_1_1_1,00.html Volume 1 of this release provides figures for the EU27, with 2007 data expected to be published in June 2009. Data for previous years can be subject to revision with each release of new data. |