Research and development in the business enterprise sector, 2006, final figures

The figures include enterprises with 10 employees or more. In addition, a further NOK 1.1 billion in R&D expenditure was reported from enterprises with 5-9 employees. The total R&D expenditure for all business enterprises for 2006 thus amounts to NOK 16.4 billion. This is the first time enterprises with 5-9 employees are included in the survey.

The number of R&D man-years increased by 4.2 per cent, from 13 815 in 2005 to 14 395 in 2006. Enterprises with 5-9 employees reported an additional 1 384 man-years. The largest increase in R&D man-years was in the service industry. The increase was 9.8 per cent, while the number of R&D man-years in the manufacturing industry and other industries remained almost unchanged. The share of enterprises with R&D decreased, from 18.5 per cent in 2005 to 16.5 per cent in 2006.

The large increase in R&D expenditure was due to current costs other than compensation of employees. These current costs increased by 21 per cent compared with 2005 for enterprises with 10 employees or more. In comparison, costs for compensation of employees increased by 6.8 per cent. The average costs for compensation of employees increased slightly from 2005 to 2006. Due to a change in the 2006 survey enterprises may previously have included costs for hired personnel in costs for compensation of employees, and this may explain the weak increase. Investments in R&D equipment increased by 21.7 per cent from 2005, but only account for 7.3 per cent of total R&D costs.

Increased R&D expenditure for the manufacturing and service industry

The manufacturing industry is still the largest R&D contributor, accounting for 49.0 per cent of R&D expenditure in 2006. In comparison, the service industry accounted for 41.8 per cent. R&D in the manufacturing industry has grown by NOK 700 million, or 10.5 per cent, compared with 2005. R&D in the service industry has grown by NOK 800 million, or 14.8 percent. The increase in R&D activity the recent years has taken place in the service industry. R&D in the service industry has grown by 31.8 per cent between 2004 and 2006, compared with 9.4 per cent in the manufacturing industry.

The largest enterprises, with more than 500 employees, accounted for 42.6 per cent of total R&D. These enterprises also had the strongest growth in R&D from 2005, with a 21.8 per cent increase, thus continuing the trend we have seen in recent years. Enterprises with 10-49 employees had a slight increase in R&D expenditure of 3.2 per cent, accounting for 22.6 per cent of total R&D in 2006.

Reduced extramural R&D

Norwegian business enterprises spent nearly NOK 3.8 billion on extramural R&D services in 2006, a decrease of 6.5 per cent compared with 2005. Most of the decrease may be attributed to the service industry, which had a 12.3 per cent decrease. R&D expenditure in extraction of oil and natural gas amounted to NOK 1 billion, representing the largest industry in terms of extramural R&D. Enterprises with 5-9 employees spent NOK 188 million on extramural R&D in 2006.

Purchases from other Norwegian enterprises are the most important source of extramural R&D services, and accounted for 41.9 per cent of total extramural R&D in 2006. Other Norwegian enterprises are particularly important for the service industry, accounting for 63.8 per cent of total extramural R&D. Purchases from abroad increased by 5.8 per cent compared with 2005. The manufacturing industry was the largest contributor to the increase in purchases from abroad. Purchases from abroad are the most important source of extramural R&D in the manufacturing industry, accounting for 44.9 per cent of total extramural R&D.

Considerable research into ICT and energy and environmental technology

41.7 per cent of current R&D expenditure, or almost NOK 4.7 billion, was conducted in relation to information and communication technology (ICT) in 2006 (enterprises with 20 employees or more). For enterprises in the service industry, R&D expenditures on ICT accounted for 71.3 per cent of total expenditure. In comparison, R&D expenditures on ICT only accounted for 19.9 per cent in the manufacturing industry. R&D conducted in relation to biotechnology accounted for 7.3 per cent of total R&D expenditure, and nanotechnology accounted for 1.8 per cent.

R&D on energy and environmental technology is an important area in which Norwegian enterprises spent almost NOK 2.1 billion in 2006 (enterprises with 20 employees or more). Another important area is health, which accounted for NOK 1.1 billion.

Total R&D and international comparison

When adding R&D in universities, colleges and research institutes, total R&D expenditure amounted to NOK 32.8 billion in 2006. This represents a nominal increase of 10.6 per cent from 2005. Total R&D as a percentage of GDP was 1.52 per cent in 2006, the same as in 2005. The share is nevertheless clearly lower than in 2004 and in the peak year 2003, with 1.59 and 1.71 per cent respectively. The decrease is mainly due to a strong growth in total GDP, about 11 per cent for both 2005 and 2006 and 9 per cent for 2004.

More detailed results are available in StatBank Norway . For more information on other sectors is also available at NIFU Step and The research Council of Norway (Report on Science & Technology Indicators for Norway 2007) .

Tables:

• Table 1 R&D in Business Enterprise Sector. Intramural and Extramural R & D, R & D-personnel and R & D man-years, by industry and size class (+10 employees). 2004-2006. NOK million and number
• Table 2 R & D in Business Enterprise Sector. Intramural and extramural R & D, R & D personell and man-years by Industry (+10 employees). 2005 and 2006. NOK million and number
• Table 3 Intermural R & D expenditures in the Business Enterprise Sector, type of costs and number of R & D enterprises by Industry and size class (+ 5 employees). 2006. Millions NOK
• Table 4 Funding of R & D expenditures in the in Business Enterprise Sector by Industry and size class (+ 5 employees). 2006. NOK Million
• Table 5 Extramural R & D by Industry (+ 10 employees). 2006. NOK million
• Table 6 Intramural R & D expenditure, by industry and technology field (+20 employees). 2006. NOK million
• Table 7 Intramural R & D expenditure, by industry and selected thematic field (+20 employees). 2006. NOK million