Navigation Links
Is governmental investment in industrial R&D paying off?
Date:7/1/2011

June 30, 2011 Jerusalem, Israel The Israeli Chairmanship of EUREKA, the largest pan-European network for market-oriented, industrial R&D and innovation, has released new data from a report conducted by Kalman Gayer and the economic and strategic consulting firm Applied Economics Ltd., to mark the completion of Israel's Chairmanship year and EUREKA's 25th anniversary. The study presents the proven impact of EUREKA on companies participating in EUREKA programs.

Israel Shamay, Director of the Israeli Chairmanship of EUREKA, explained that the surveys previously conducted by various European R&D programs, including EUREKA, were based largely on interviews with managers and/or technical summary reports of the project, which naturally focused on the tools of R&D and less on financial results. "Since the Israeli Chairmanship does not consider industrial R&D an end in it of itself, but rather as a means to advance industry and economic growth through innovation and international cooperation, we decided to measure the financial effect of participation in the program for the firm."

Geyer's study measured the impact of participation in EUREKA projects for companies in Europe. The study is based on a sample of 350 companies which participated in EUREKA projects between 1996 and 2005. The study compares pairs of companies nearly identical in their parameters: size, country, field of technology, sales revenue, number of employees, etc. - with the key difference between them being that one company having participated in at least one EUREKA project, and the other company having not participated. The difference in outcomes (after the EUREKA project is completed) between the participating company and the non-participating company is attributed to the effect of participation in EUREKA. The research examined individual cooperation projects that were performed mostly by two partners from 2 countries, and that focused on industrial R&D - products close to market. This is the main support vessel, characteristic of most of the activities taking place in the program.

Dr. Shaul Freireich, Deputy Chief Scientist of Technology, oversaw the execution of the survey on behalf of the Israeli Chairmanship.

The study focused on changes in sales volume and number of employees at the company, showing significant results on the impact of EUREKA participation in both of these parameters. On average, companies participating in EUREKA recorded sales that rose by 28% annually during the three years from the completion of the project, compared to similar companies which did not participate during this period as part of EUREKA project. Additionally, there was an annual increase in employment in these companies by 20% or more, compared to similar companies not involved in EUREKA at the time. Overall, approximately two-thirds of companies that participated in EUREKA projects outperformed similar but non-participating companies, in terms of both sales and employment.

The positive impact of EUREKA was shown to be significant upon both large companies and SMEs, with the statistics for sales and employment growth being greater fir medium and large companies.

According to Luuk Borg, Director of the EUREKA Secretariat based in Brussels, the survey shows that the total annual increase in sales among companies participating in EUREKA projects is approximately 2.8 billion euros, in addition to 25,000 jobs created each year - while the annual governmental aggregate investment (from the 40 EUREKA member countries) in these projects stands at about 140 million euros only.

The Israeli angle in the study: The sample included 30 Israeli companies. The comparison was made between firms that received regular grants from the Office of the Chief Scientist, and the 'twin' companies that were supported by the OCS as part of participation in the EUREKA project, in order to measure the added economic value of EUREKA participation beyond that of normal government support for R&D. The results of the survey initiated by the Israeli Chairmanship of EUREKA are supported by other studies conducted during the Israeli Chairmanship year by other countries including Spain, France and Denmark.


'/>"/>

Contact: Piotr Pogorzelski
piotr.pogorzelski@eurekanetwork.org
322-777-0979
EUREKA
Source:Eurekalert

Related biology news :

1. Georgia residents: Investment in global health research is vital to states economy
2. Life Sciences Venture Capital Investment Level Rebounds in Q1 2011 but Deal Volume Declines, According to the MoneyTree Report
3. Measuring science investments
4. President Obama calls for increased investment in science, including biomedical research
5. Stroz Friedberg Amplifying Growth with $115MM New Mountain Capital Investment
6. Stroz Friedberg Amplifying Growth with $115MM New Mountain Capital Investment
7. Wellcome-Wolfson partnership makes £30 million investment in UK scientific infrastructure
8. Endeavour to Present at Rodman & Renshaw Global Investment Conference
9. Caltech receives more than $33 million from American Recovery and Reinvestment Act
10. NASDCTEc and ACTE Ask the White House to Increase Investment in, Not Flat Fund, CTE
11. Iowa State faculty attract $4.8 million in American Recovery and Reinvestment Act grants
Post Your Comments:
*Name:
*Comment:
*Email:
(Date:5/6/2017)... RAM Group , Singaporean based ... in biometric authentication based on a novel  ... to perform biometric authentication. These new sensors are based on ... Ram Group and its partners. This sensor will have ... and security. Ram Group is a next generation ...
(Date:4/13/2017)... April 13, 2017 UBM,s Advanced Design and ... will feature emerging and evolving technology through its 3D ... will run alongside the expo portion of the event ... and demonstrations focused on trending topics within 3D printing ... and manufacturing event will take place June 13-15, 2017 at ...
(Date:4/11/2017)... April 11, 2017 NXT-ID, Inc. (NASDAQ: ... company, announces the appointment of independent Directors Mr. Robin ... its Board of Directors, furthering the company,s corporate governance and ... Gino Pereira ... look forward to their guidance and benefiting from their considerable ...
Breaking Biology News(10 mins):
(Date:8/15/2017)... ... August 15, 2017 , ... Kapstone Medical is proud to ... helping medical technology companies and inventors develop and safeguard their latest innovations. The ... firm with a portfolio of clients in the United States and around the world. ...
(Date:8/15/2017)... , ... August 15, 2017 , ... Any expert in ... has compromised these disciplines for more than half a century. Despite their essential ... It is widely known that molecular tags developed for this purpose also tag ...
(Date:8/15/2017)... ... 15, 2017 , ... Coffea arabica accounts for 70 percent ... During this educational webinar, participants will learn about the importance of genomics for ... understanding of how genomics is important for coffee breeding improvement. , Attendees will ...
(Date:8/14/2017)... ... 14, 2017 , ... Opal Kelly, a leading producer of ... announced the release of SYZYGY™, a new open standard for connecting high-performance peripherals ... compact, low cost, low pin-count, high-performance connectivity solution between FPGAs and single-purpose hardware ...
Breaking Biology Technology: