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Is governmental investment in industrial R&D paying off?

et. 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 part

Contact: Piotr Pogorzelski

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