Research and development in the business enterprise sector, 2003, final figures

76 per cent of intramural R&D in business and industry is financed from own funds, including loans. The remaining R&D expenditure consists of foreign capital, external financing from private Norwegian enterprises and public financing. Public financing except the tax reduction system SkatteFUNN amounted to 6 per cent of total R&D expenditure in 2003. When SkatteFUNN is excluded there was a decrease in public financing. SkatteFUNN accounted for 4 per cent of the total financing. SkatteFUNN is mainly used by small and medium sized enterprises. External private financing and foreign capital accounted for 6 and 8 per cent respectively. Contributions from group enterprises make up a large share of external private and foreign financing.

In 2003, service sector enterprises had a lower proportion of self-financing than enterprises in the manufacturing sector - 72 and 78 per cent respectively. On the other hand, the contributions from group enterprises are higher in the service sector. The manufacturing sector has a higher proportion of public financing, but financing through SkatteFUNN is more or less the on the same level for both sectors.

Representing two thirds of total foreign financing, foreign group enterprises are the main source of financing from abroad. Financing by other foreign companies and EU funding accounted for 16 and 10 per cent respectively. In 2003, the service sector had a higher proportion of foreign financing than the manufacturing sector, at 11 per cent compared with 7 per cent.

There are several sources of public financing. The main contributors are ministries, and in particular the Ministry of Defence. If we include directorates and county municipalities, the ministries' proportion of public financing was 41 per cent. Other public sources are the Research Council of Norway and Innovation Norway, at 12 and 7 per cent respectively. The SkatteFUNN system contributes with 40 per cent( 1 ) . Contributions from ministries mainly go to large enterprises, while contributions from SkatteFUNN and Innovation Norway mainly go to small enterprises. Funds from the Research Council are not as affected by size. See Figure 2.

(1) 40 per cent relates to enterprises with at least 10 employees. This is the lower limit for inclusion in the R&D statistics, while there is no size limit of the enterprises in the SkatteFUNN system.

Tables:

• Table 1 R&D in Business Enterprise Sector. Intramural and extramural R&D, R&D personell and man-years by NACE. 2003. NOK million and number
• Table 2 R&D in Business Enterprise Sector. Intramural and Extramural R&D, R&D personell and R&D man-years by sector and size classes. 200-2003 . NOK million and number
• Table 3 Funding of R&D expenditures in the in Business Enterprise Sector by source and NACE. 2003. NOK million
• Table 4 Funding of R&D expenditures in the in Business Enterprise Sector, by source and size classes. 2003. NOK million