Further growth in business sector R&D
The business enterprise sector performed research and development (R&D) totalling about NOK 29.5 billion in 2016. This is 6.2 per cent higher compared to 2015. Measured in fixed prices, the increase was 3.8 per cent.
- Full set of figures
- Research and development in the business enterprise sector
After two consecutive years of record growth in business enterprise R&D activity, the preliminary figures for 2016 show a somewhat more moderate increase in 2016. The survey included enterprises with at least 10 employees. Manufacturing industries show a marginal increase of less than 1 per cent, while service industries increased by 9.6 per cent. It may be worth noting that total GDP for Norway shows zero growth from 2015 measured in current prices; for mainland Norway, nominal growth was 3.7 per cent. This means that R&D as a share of GDP is still increasing.
Changes in R&D expenditure compared to 2015 vary by size group, in particular when considering the largest enterprise size groups. However, these variances are to a large degree attributable to changes in the number of employees amongst large R&D performers.
Figure 1. Intramural R and D expenditures in constant prices. Base year=2005
|Other industries, incl. Extraction of petroleum and gas||940||946||1259||1545||1610||1332||1342||1357||1622||1577||1457||1538||1351||1593||1904||1937||2137||2179|
Enterprises covered by the survey performed 19 764 R&D full time equivalents (FTEs), which is 3,5 per cent more than in 2015. Service industries performed 4,4 per cent more R&D FTEs in 2016 and accounted for 55 per cent of all R&D FTEs in the business enterprise sector.
One in four enterprises engage in R&D activities
The proportion of enterprises that perform R&D has remained stable at around 20 per cent for several years, but jumped to 25 per cent in 2015. The results for 2016 show a similar level, with 26 per cent. The growth in the number of R&D-performing enterprises was strongest among small enterprises with less than 50 employees.
Increased use of hired R&D personnel
Business R&D activity is mainly carried out by the company's own employees. Compensation for in-house R&D personnel amounted to more than NOK 18 billion in 2016, equivalent to 62 per cent of total R&D expenditures. However, it is becoming increasingly common for companies to hire labour from external sources to carry out R&D projects. Costs of hired R&D personnel amounted to NOK 3.1 billion in 2016; a 12 per cent increase. In 2009, the cost of hired personnel amounted to 6 per cent of total R&D costs, and in 2016 reached 11 per cent.
Service industries account for most of the business enterprise expenditure for hired R&D personnel, with a total of NOK 2.5 billion in 2016. These industries also contributed to the total growth in 2016. Both small and large enterprises seem to be joining this trend.
Purchased R&D services
In addition to performing their own research and development, many enterprises acquired R&D services from other actors. The total expenditures for purchased R&D amounted to NOK 7.0 billion in 2016.
Norway's total R&D work
Information on total R&D work in Norway, including universities, colleges and research institutes, is available at www.nifu.no/statistik/foustatistik.