Title | Gross Expenditure on Research & Development as a percentage of Gross Domestic Product. |
Associated Targets | To at least halve the gap in total R&D spending compared with EU average by 2011. |
Brief Description | Gross Expenditure on R&D ( GERD) comprises that undertaken by business, government and the higher education sector. GERD as % of GDP serves as a general indicator of expenditure in R&D - a technical input to the innovation process. It also demonstrates the strength of the economy in terms of having the required expertise, skills and business environment to undertake R&D activity. |
Strategic Objective(s) to Which Indicator Relates | This indicator informs progress in relation to the Wealthier and Fairer Strategic Objective. R&D spend is an indicator of business confidence and is a key input to the innovation process. Innovation is crucial for businesses to maintain profitability and competitiveness and to provide high value products and services. This indicator also links to the Smarter strategic objective. The indicator covers all R&D, including that undertaken by Universities in Scotland. |
More Detailed Definitions |
Definitions of Keywords | The definition of R&D follows internationally agreed standards defined by the Organisation for Economic Co-operation and Development ( OECD) and published in the Frascati manual. R&D is defined as "creative work undertaken on a systematic basis in order to increase the stock of knowledge, including knowledge of man, culture and society and the use of the stock of knowledge to devise new applications". Gross R&D comprises any expenditure on R&D carried out at businesses, government or higher education institutions in Scotland, irrespective of either ownership or the source of funding for that investment. To halve the gap in total R&D spending is defined as halving the percentage point difference between the Scottish R&D as a percentage of GDP and the EU average R&D as a percentage of GDP. Scottish R&D spending is defined as the sum of Business, Government and Higher Education R&D expenditure in Scotland as published annually by the Office for National Statistics ( ONS). The average R&D as a percentage of GDP for the EU will be as published by OECD in the Main Science and Technology Indicators. The EU average will be based on the EU27. |
Evidence Source | Data on the level of expenditure on Gross R&D in Scotland are published annually by ONS. ONS publish regional gross value added ( GVA) figures (including figures for Scotland) on an annual basis. These figures will be combined by the Scottish Government's Office of the Chief Economic Adviser to show Gross R&D as a percentage of GDP, comparable with the OECD figures. Annual figures for the EU27 are published by the OECD as Main Science and Technology Indicators ( MSTI). |
Baseline and Past Trends | The baseline figures used for this target will be for Gross Expenditure on R&D in 2006. In 2006 Scottish Gross R&D as a percentage of GDP was 1.43% and the EU27 figure was 1.77%. The gap between Scotland and the EU27 average was 0.34 percentage points. Data for Scotland were published on 30 June 2009. The 2011 figures will be used as the end point for this target. The 2011 data will become available in June 2013. The latest figures for this indicator can be found on the Scotland Performs website: http://www.scotland.gov.uk/About/scotPerforms/indicators/ind1 |
Methodology for Data Source | The gap in total R&D spending compared with EU average is calculated by subtracting the Scottish Gross R&D as a percentage of GDP from the EU27 Gross R&D as a percentage of GDP. |
Data Ownership and Quality Assurance | Data on the components of Gross R&D expenditure in Scotland are published annually by ONS. ONS also publish regional gross value added ( GVA) figures (including figures for Scotland) on an annual basis. Both sets of figures are National Statistics. EU27 figures are published annually by OECD's Directorate for Science Technology and Industry ( DSTI). |
Publication of Data | Data on the components of Gross R&D expenditure in Scotland are published annually by ONS. These data are then published, in more detail, by the Scottish Government as part of its annual Gross Expenditure on R&D publication: http://www.scotland.gov.uk/Publications/2011/03/GERD09 The 2009 GERD figures were published in March 2011. EU figures are published annually by OECD's Directorate for Science Technology and Industry ( DSTI) in the Main Science and Technology Indicators release. http://www.oecd.org/document/26/0,3343,en_2649_33703_1901082_1_1_1_1,00.html Volume 2 of this release provides figures for the EU27, with the 2009 data published in February 2011. Data for previous years can be subject to revision with each release of new data. |
Methodology for Recent Change Arrow on Scotland | This evaluation is based on: any difference in the gap within +/- 0.01 percentage points of last year's figure suggests that the position is more likely to be maintaining than showing any change. A decrease in the gap of 0.01 percentage points or more suggests the position is improving; whereas an increase of 0.01 percentage points or more suggests the position is worsening. |