13 September 2012

OECD Science, Technology and Industry Outloook 2012

13 September 2012 - Business spending on research and development has been hit hard by the economic crisis, with nearly all OECD countries seeing a fall in investment which could impact innovation and long-term growth, according to a OECD Science, Technology and Industry Outlook. 

The OECD Science, Technology and Industry Outloook 2012 says that business spending on R&D fell a record 4.5% in 2009 in the OECD. Only France and Korea bucked the trend. 

The current weak economic recovery will likely lead to continued sluggish growth in R&D spending by firms, notably in Southern and Eastern Europe, in the foreseeable future. The outlook for France, Germany, the United Kingdom and the United States is also uncertain, according to the report. 

Spending by Asian economies, such as China, India and Korea, on the other hand continued to increase during the crisis. Year-on-year growth in R&D investment by firms in 2010 was 29.5% in China and 20.5% in Korea and India. 

Source: OECD