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Published: 4 October 2006

Research and development expenditure went up again in 2005

Nearly EUR 5.5 billion was expended on research and development in Finland 2005. R&D expenditure grew by four per cent from 2004, or by almost the same amount as in the previous year. In terms of figures the growth amounted to EUR 220 million, of which EUR 193 million came from the enterprise sector and EUR 25 million from research institutes in the public sector. The engine behind the growth was the electronics industry where investments in R&D went up by nearly seven per cent from 2004.

The R&D expenditure of public research institutes increased by 4.6 per cent whereas that of the university sector remained almost unchanged, as universities' expenditure of external R&D funding contracted by EUR 10 million and because budget-funded research expenditure was calculated with new data on the shares of time spent on research from the survey of university personnel's time use. Calculated with the previously used shares, the R&D expenditure of the university sector would have gone up by a total of approximately two per cent.

The GDP share of R&D expenditure was 3.5 per cent in 2005. Relative to the economic resources, Finland's investment in R&D did not grow much from the previous year. Nevertheless, the direction in the GDP share of R&D expenditure has shown continuous growth and for a long time now the share has been the second highest after Sweden among the EU countries.

R&D expenditure by sector and GDP share of R&D expenditure in 2000-2005

Year	Business enterprises		Public sector*		University sector		Total	GDP share of R&D expenditure**
	milj. €	%	milj. €	%	milj. €	%	milj. €	%
2000	3,135.9	70.9	497.4	11.2	789.3	17.8	4,422.6	3.34
2001	3,284.0	71.1	500.9	10.8	834.1	18.1	4,619.0	3.30
2002	3,375.1	69.9	529.7	11.0	925.6	19.2	4,830.3	3.35
2003	3,527.9	70.5	515.4	10.3	961.7	19.2	5,005.0	3.43
2004	3,683.5	70.1	530.1	10.1	1,039.8	19.8	5,253.4	3.46
2005	3,876.9	70.8	554.7	10.1	1,042.1	19.0	5,473.7	3.48
* incl. PNP (private non-profit sector) ** GDP 2004 and 2005 preliminary data of Statistics Finland

More detailed information will be released in the Research and Development 2005 publication due out in December.

Source: Research and Development, Statistics Finland

Inquiries: Mr Ari Leppälahti +358 9 1734 3237, Mr Markku Virtaharju +358 9 1734 3290, tiede.teknologia@stat.fi

Director in charge: Ms Kaija Hovi

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Appendix tables

• Business enterprises: R&D personnel, person-years and expenditure by industry and size of enterprise (Excel) (4.10.2006)

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Last updated 4.10.2006