The European Commission’s “2012 EU Survey on R&D Investment Business Trends” finds that responding companies plan to raise their R&D investments by 4.2% on average from 2012 to 2014. This compares to a projected average increase of 5% in the 2011 survey (see IBO 8/15/11) and, prior to the recession, 7% in the 2007 survey.

The 187 respondents had total annual R&D spending of around €56 billion ($78 billion = €0.72 = $1) and consist of 54, 93 and 40 EU companies in high, medium and low R&D intensity sectors, respectively. High R&D intensity sectors include pharmaceuticals and biotechnology. Sectors of medium R&D intensity include chemicals and food producers. Oil and gas, and metals and mining are low R&D intensity sectors. The average respondent has 25,500 employees, including 1,500 R&D employees, and €10 billion ($14 billion) in annual sales.

Among those sectors whose 2012–14 R&D growth expectations outpace those from the survey for the 2007–10 period are general industries, automobiles and parts, chemicals, oil and gas producers, aerospace and defense, and construction and materials. By sector, 2012–14 R&D spending is expected to increase 6.8% for general industries, 6.0% for automobiles and parts and 5.5% for chemicals. Sectors whose growth rate is expected to be lower are food producers, and pharmaceuticals and biotechnology.

The survey also examined respondent’s annual share of sale from products introduced in the last three years. The average percentage was 18%, but for high-intensity R&D companies, it was 33%. For medium-intensity R&D companies, it was 18%, and for low-intensity R&D companies, it was 10%.

Asked about the importance of listed R&D activities, among high- and medium R&D intensity companies, the greatest percentage of respondents ranked their R&D and marketing-related activities, such as market research and advertising, the highest. However, the greatest percentage of low R&D intensity companies rated R&D within the company, acquisitions in the EU and outsourcing R&D to EU public organizations as the highest.

When it comes to forms of knowledge sharing, the highest percentage of respondents from all types of companies ranked collaboration agreements with other companies, as opposed to licensing, the most important. The highest percentage of high R&D intensity companies rated licensing-in with other companies as the second most important. For both medium and low R&D intensity companies, the highest percentage of companies rated collaboration agreements with higher education institutions as the second most important. For low R&D intensity companies, collaboration agreements with public research organizations were also ranked as second most important.

Licensing-in agreements were the types of licensing that were used by 49% of respondents between 2009 and 2011. As for the kind of licensing-in agreements used, the highest percentage of firms, regardless of R&D intensity, used nonexclusive licensing-in and acquisitions. For licensing-out agreements, the highest percentage of all types of firms used nonexclusive licensing out agreements.