2.3R&D expenditure in the public sector

By Peter Viaene (WEWIS).

Globally the share of R&D spending by the public sector within total R&D spending stays stable between 2015 and 2023. R&D spending by the public sector (non-BERD = GOVERD + HERD + PNP) amounted to 3,625 million euros in 2023. Approx. 41% of this amount was spent by public research institutes (GOV) and 56% by higher education institutions (HES). There is an increase in the R&D expenditure (in absolute terms) of the public sector in 2022 and 2023. The R&D intensity for the public sector (non-BERD as a % of GDP) in Flanders amounted to 1.02% in 2023. After a stagnation between 2012 and 2015, a steady increase can be seen. When the total R&D intensity of the non-BERD is broken down by source of funds, 0.31% is funded privately and 0.71% by public funds in 2023.

Figure 1. Evolution of the R&D spending from 2015 to 2023 in million euros (current prices)

GOVERDHERDPNPnonBERD€ 0€ 500€ 1000€ 1500€ 2000€ 2500€ 3000€ 3500€ 4000R&D spending current prices in million euros20152016201720182019202020212022202305001000150020002500300035004000201520162017201820192020202120222023 GOVERDHERDPNPnonBERD€ 0€ 500€ 1000€ 1500€ 2000€ 2500€ 3000€ 3500€ 4000R&D spending current prices in million euros20152016201720182019202020212022202305001000150020002500300035004000201520162017201820192020202120222023 GOVERDHERDPNPnonBERD€ 0€ 1000€ 2000€ 3000€ 4000R&D spending current prices in million euros20152016201720182019202020212022202301000200030004000201520162017201820192020202120222023

The GOVERD and HERD (2023) can be broken down by different fields of science. For the GOV sector, this indicates the dominant position of engineering and technology (70.5%). For the HES sector, the most important fields of science are the medical sciences (30.5%), engineering & technology (18.4%). the natural sciences (17.8%), and the social sciences (16.8%). 

Figure 2. Evolution of R&D intensity for non-BERD from 2017 to 2023

HERDGOVERDPNPnonBERD0,00%0,10%0,20%0,30%0,40%0,50%0,60%0,70%0,80%0,90%1,00%1,10%Percentage R&D expenditure of GDP20172018201920202021202220230,000,100,200,300,400,500,600,700,800,901,001,102017201820192020202120222023 HERDGOVERDPNPnonBERD0,00%0,20%0,40%0,60%0,80%1,00%Percentage R&D expenditure of GDP20172018201920202021202220230,000,200,400,600,801,002017201820192020202120222023 HERDGOVERDPNPnonBERD0,00%0,20%0,40%0,60%0,80%1,00%Percentage R&D expenditure of GDP20172018201920202021202220230,000,200,400,600,801,002017201820192020202120222023

For the GOVERD, the most important source of funding in 2023 was abroad (54.0%), followed by government funding (39.4%), and, thirdly, the companies (5.9%). For the HERD, government funding was again the most important source of funding (67.9%), followed by the companies (14.8%), and abroad (9.5%). The proportion of the HERD that is supported by (domestic) companies in 2023 ranks higher internationally than any of the EU27 countries and is more than twice the number for the EU27 as a whole. Only Germany has a similar proportion. In other words, companies are both an important client and an important source of funds for the research carried out at the Flemish higher education institutions.

Figure 3. International comparison of the funding of HERD by companies in 2023

0%2%4%6%8%10%12%14%16%Percentage of funding by companiesFlandersGermany*BelgiumThe NetherlandsEU27*USA*AustriaJapanFinlandFranceSwedenDenmarkNorway0246810121416FlandersGermany*BelgiumThe NetherlandsEU27*USA*AustriaJapanFinlandFranceSwedenDenmarkNorway 0%2%4%6%8%10%12%14%16%Percentage of funding by companiesFlandersGermany*BelgiumThe NetherlandsEU27*USA*AustriaJapanFinlandFranceSwedenDenmarkNorway0246810121416FlandersGermany*BelgiumThe NetherlandsEU27*USA*AustriaJapanFinlandFranceSwedenDenmarkNorway 0%5%10%15%Percentage of funding by companiesFlandersGermany*BelgiumThe NetherlandsEU27*USA*AustriaJapanFinlandFranceSwedenDenmarkNorway051015FlandersGermany*BelgiumThe NetherlandsEU27*USA*AustriaJapanFinlandFranceSwedenDenmarkNorway

* EU27: estimated value; Germany and USA: different definition

Source: OECD database, Main Science and Technology Indicators. 

For the R&D intensity of the HES, Flanders scores above France and the EU27 average. Norway (0.58%), the Netherlands (0.65%), Finland (0.75%), Austria (0.76%), Sweden (0.77%) and Denmark (1.01%) have a much higher R&D intensity for the HES. The R&D intensity of the GOV is the highest in Flanders. In summary, for both, Flanders is maintaining its international position.

Figure 4. International comparison of the R&D intensity of HERD and GOVERD in 2023

HERDGOVERDUSA*JapanFrance*EU27*Belgium*Germany*FlandersNorwayThe Netherlands*FinlandAustria*SwedenDenmark0,00%0,10%0,20%0,30%0,40%0,50%0,60%0,70%0,80%0,90%1,00%1,10%Percentage R&D expenditure of GDPUSA*JapanFrance*EU27*Belgium*Germany*FlandersNorwayThe Netherlands*FinlandAustria*SwedenDenmark0,000,100,200,300,400,500,600,700,800,901,001,10 HERDGOVERDUSA*JapanFrance*EU27*Belgium*Germany*FlandersNorwayThe Netherlands*FinlandAustria*SwedenDenmark0,00%0,20%0,40%0,60%0,80%1,00%Percentage R&D expenditure of GDPUSA*JapanFrance*EU27*Belgium*Germany*FlandersNorwayThe Netherlands*FinlandAustria*SwedenDenmark0,000,200,400,600,801,00 HERDGOVERDUSA*JapanFrance*EU27*Belgium*Germany*FlandersNorwayThe Netherlands*FinlandAustria*SwedenDenmark0,00%0,20%0,40%0,60%0,80%1,00%Percentage R&D expenditure of GDPUSA*JapanFrance*EU27*Belgium*Germany*FlandersNorwayThe Netherlands*FinlandAustria*SwedenDenmark0,000,200,400,600,801,00

* EU27: estimated value; Germany (GOVERD), the Netherlands (GOVERD), and USA: different definition; Austria, France, GErmany (HERD), and Belgium: provisional number; the Netherlands (GOVERD) and Germany (HERD): break in time series

Source: OECD database, Main Science and Technology Indicators.