Record Investment in Research and Development in Spain in 2023

2023 saw a progressive upward trend in investment in Research and Development (R&D) in Spain, reaching a new peak. According to data provided by the National Institute of Statistics (INE), Spanish investment in R&D hit a historic high of 22.379 billion euros last year, the highest on record since 2000. This marked an increase of 3.054 million euros compared to 2022, with an annual growth rate of 15.9%, the second highest on record, in the ninth consecutive year of increases.

The Role of Next Generation EU Funds

The Foundation Cotec estimates that if the current growth rate is sustained, Spain would exceed the target set by the Spanish Strategy for Science, Technology and Innovation, which aims for the country to invest 2.12% of its GDP in R&D by a certain year. If the trend continues, this figure could reach 2.21% in four years. Cotec attributes this significant increase in R&D investment to the cushion provided by the European funds Next Generation EU, cautioning that these funds will not be available indefinitely. The foundation recommends finding a replacement for these funds once the European coverage ends in the summer of 2026, suggesting other national, public, and private sources of funding.

Sector Contributions to Investment Growth

Both the public and private sectors contributed equally to the increase in investments, each growing by 16% in 2023. In absolute terms, the public sector contributed 9.701 billion euros, while the private sector invested 12.678 billion euros. This represents a historic high and is 4.582 billion euros more than the amount invested in 2008, before the financial crisis.

The total number of full-time employees in R&D activities increased to 282,415 in 2023, with 19,000 more employees than in the previous year. Both the public sector (employing a total of 146,713 people) and the private sector (employing 135,702 people) contributed almost equally to this growth, with an additional 9,724 and 9,284 employees, respectively.

While services (6.727 billion euros) and industry (5.676 billion euros) made similar investments in R&D in 2023, the industry stood out due to its significant contribution to the annual investment volume, accounting for over 45% of the total investment, despite representing only 23% of Spain’s GDP.

Geographical Expansion

Regarding the service sectors that invest the most in R&D, professional, scientific, and technical activities led the way with 3.747 billion euros, followed by R&D services with 2.450 billion euros, and information and communication services with 1.930 billion euros.

In terms of gender distribution, men and women were almost equally represented in the public sector (51% and 49%, respectively), while men dominated the private sector (68% and 32%, respectively), highlighting the ongoing gender gap in the private sector.

All regions in Spain recorded growth rates in R&D investment, with Galicia and Asturias leading the way with a 28% increase. The lowest growth rates were seen in Castilla-La Mancha (+6%) and the autonomous cities of Ceuta (+6.5%) and Melilla (+4.2%).

Conclusion

The record investment in Research and Development in Spain in 2023 reflects a promising trend towards innovation and growth in various sectors. With increased contributions from both the public and private sectors, as well as a focus on geographical expansion, Spain is poised to continue its upward trajectory in R&D investment.

FAQ

1. What contributed to the record investment in R&D in Spain in 2023?

The increase in R&D investment in Spain in 2023 was propelled by significant contributions from both the public and private sectors, as well as the support from European funds like Next Generation EU.

2. Which sectors saw the most growth in R&D investments?

While services and industry made similar investments in R&D in 2023, the industry sector stood out for contributing over 45% of the total investment volume, despite representing only 23% of Spain’s GDP.

3. How did the gender distribution vary in the public and private sectors?

Men and women were almost equally represented in the public sector, while men outnumbered women in the private sector, highlighting the continued gender gap in the private sector.

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