Navigation Links
Is governmental investment in industrial R&D paying off?

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

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:
(Date:10/5/2015)... ) releases ... (NASDAQ: NXTD ), a biometric authentication company focused ... ) releases the following market and ... a biometric authentication company focused on the growing mobile ... ) releases the following market and ...
(Date:10/1/2015)... Oct. 1, 2015  Biometrics includes diverse set ... body characteristics, such as fingerprints, eye retinas, facial ... of biometrics technology has been constantly increasing in ... five years. In addition to the most prominent ... recognition, other means of biometric authentication are rapidly ...
(Date:9/30/2015)... , Sept. 30, 2015  The U.S. Court of ... another key ruling in favor of Crossmatch ™, ... fingerprint scanner company Suprema and its U.S. partner Mentalix ... a trade provision that declares it unlawful to engage ... infringing two of Crossmatch,s patents, the 5,900,993 patent and ...
Breaking Biology News(10 mins):
(Date:10/12/2015)... , Oct. 12, 2015 VolitionRx Limited ... a completed clinical study of its NuQ ® blood-based ... the online issue of Clinical Epigenetics , the official ... conducted in collaboration with Lund University, ... Andersson , MD, PhD, Professor of Surgery and Vice-Dean, Faculty ...
(Date:10/11/2015)... ... October 11, 2015 , ... ... has been officially launched and multiple surgeries have been completed with this new ... of the Neuroscience & Spine Center of the Carolinas. The Revolution™ Spinal ...
(Date:10/9/2015)... -- Governor Tom Wolf announced today that ... developing T-cell receptor cancer immunotherapy treatments, will create at ... project. Pennsylvania , and today,s ... new, high-paying jobs will be created with this project," ... includes sustained funding for the life science sector and ...
(Date:10/9/2015)... ... October 09, 2015 , ... From blood to food ... those cells from their surroundings for research, diagnostics, and cell therapy—also known as ... this, Ann Arbor-based startup Akadeum Life Sciences is developing a radically ...
Breaking Biology Technology: