Less than 1% spent on R&D in 2023, NSO says

In 2023, total expenditure on Research and Development amounted to €121 million, or 0.6% of GDP, the NSO said Friday.

During 2023, an increase in total expenditure on R&D activities of €16.1 million, or 15.3%, was registered. The Business Enterprise sector contributed 64.2% to total R&D, whereas the Higher Education and Government sectors contributed 34.1 and 1.7% respectively

The R&D expenditure was primarily dedicated to Basic Research, which accounted for 47.1% of total R&D in 2023, followed by Applied Research (26.9%) and Experimental Development (26%).

In 2023, all three sectors reported an increase in R&D expenditure compared to 2022. The highest increase in outlay amounting to €12.4 million was registered under the Business sector. The Higher Education sector reported an increase of €3.2 million while the Government sector increased by €0.5 million. Labour costs represented 69.2% of total R&D expenditure, followed by Other recurrent expenditure (18.1%) and Capital expenditure (12.7%).

In 2023, the highest R&D expenditure by scientific field was recorded in Engineering and technology, which accounted for 51.2% of total expenditure, followed by Natural sciences (22.3%) and Medical sciences (10.3%). Most of the R&D activity in Engineering and technology and Natural sciences was undertaken in the Business Enterprise sector, whereas research in relation to Medical and Social sciences was mainly carried out by the Higher Education sector. Year-on-year comparisons show that the highest increase was registered in Engineering and technology (€7.3 million), followed by Natural sciences (€6.9 million).

Each sector mostly funds its own research, supplemented by foreign funds. R&D in the Business Enterprise sector is mainly funded by local business enterprise funds, General university funds are directed to the Higher Education sector and Direct government funds service the Government sector. Foreign funds for R&D reached €12.8 million, or 10.6%, of total funds.

In 2023, 3,460 employees were engaged in R&D work, of whom 1,955 spent a portion of their time on R&D projects, while the remaining 1,505 employees dedicated their entire working time on R&D projects. The highest R&D employment was registered in the Higher Education sector, at 1,737 employees, followed by the Business Enterprise sector, with 1,635 employees. Male employment was predominant among researchers and technicians. Females accounted for 37% of total R&D employment.

With regard to R&D employment by major field of science, in 2023, the highest employment was recorded in Engineering and Technology with 1,235 employees, followed by Natural and Social sciences, with 849 and 640 employees respectively.

R&D Government Budget Allocations

The Government Budget Allocations for R&D (GBARD) for 2024 amounted to €41.6 million, an increase of €1.2 million when compared to 2023. The highest GBARD outlay was recorded in General advancement of knowledge: R&D financed from General University Funds of €25.7 million.