Research and development in the business enterprise sector, 2013, preliminary figures

Preliminary figures for 2013 showed that enterprises spent NOK 1.4 billion more on R&D compared to 2012. The survey includes enterprises with at least 10 employees. Since 2010, R&D activity within Norwegian business enterprises has showed stable growth.

Compensation of employees is the largest cost component, accounting for two-thirds of total R&D expenditure in 2013. Meanwhile, the largest increase was for other current costs, with an increase of 15 per cent. Conversely, capital expenditures on R&D fell by 5.0 per cent. This was due to lower expenditure on acquisitions of machinery and equipment.

More intramural R&D

R&D in the service industries grew by 5.7 per cent from 2012. This continues a trend in which the service industries are increasing their share of the total R&D expenditure. They have, by a large margin, the most R&D among the main industries. Service industries include computer programming and consultancy – the industry that contributes the most to this trend. Other industries, including oil and gas extraction, showed a solid 24.4 per cent increase. A more modest increase was found within the manufacturing industries, which rose only 2.9 per cent from 2012. This sector has been showing a steadily lower share of the overall R&D expenditure.

Increased purchases of R&D services

In addition to R&D performed by the enterprises themselves, they are often dependent on expertise outside their own company. In 2013, Norwegian enterprises acquired R&D services externally for almost NOK 6.1 billion, which is 3.3 per cent more than in 2012. Enterprises’ purchasing of R&D includes a considerable share from abroad, although 56 per cent is acquired from within Norway. R&D services from abroad are mainly made up of acquisitions from the enterprise group abroad. Extramural R&D from Norway was primarily acquired from other Norwegian business enterprises. This was followed by R&D purchases from research institutes, universities and university colleges. Acquisitions from this group showed a notable increase of 13.9 per cent, amounting to NOK 1.4 billion.

It is especially the largest enterprises that purchase R&D services externally. Enterprises with more than 500 employees accounted for almost half of this acquisition of R&D from other enterprises in the business enterprise sector. These enterprises contributed 40 per cent to the total level of internal R&D in 2013.

Even more R&D man-years

R&D man-years increased 3.9 per cent from 2012. Enterprises with 20-49 employees and those with 200-499 had the strongest growth, with 12 and 13 per cent respectively. The service industries were once again the main industry showing the largest overall increase, with 7.3 per cent more R&D man-years than 2012.

Enterprises in manufacturing more likely to engage in R&D

Among the largest enterprises; those with at least 500 employees, 50 per cent reported having R&D activities in 2013. Out of all the enterprises with at least 10 employees, 19 per cent had R&D, while the share was highest in the manufacturing industry, with 26 per cent performing R&D.

In the survey, enterprises were also asked to estimate R&D expenditure and R&D man-years for the current year. The estimates are given in the second quarter of  ¹2014 and indicate approximately unchanged levels of R&D activity in 2014 compared to 2013. Nevertheless, it is important to note that estimates are uncertain by nature, and history has shown that they are often lower than the final results.

¹ Corrected 24.10.2014