"The EU is slowly advancing towards its target of investing 3% of GDP in research and development (2.01% in 2009) but the gap with leading competitors is widening notably due to weaker business R&D investment. In 2008, 24% of the total world R&D expenditure was performed in the EU (29% in 1995). Relative to GDP, business invests twice as much in Japan or in South Korea as in Europe," according to key findings from the report.
Croatia's investment in R&D is considerably below the EU average. According to the report, "Croatia had an R&D intensity of 0.84% in 2009, a value which is considerably lower than the EU average of 2.01%."
Since 2004 when the investment in research and development accounted for 1.05 % of GDP, R&D intensity in Croatia has fluctuated. In 2006, it fell to 0.76% in 2006, slightly increased to 0.9% in 2008 only to decrease to 0.84% in 2009.
"Given the trend scenario presented below, Croatia would still be below the EU average in 2020, at an R&D intensity level of 0.68%."
The survey shows that Europe needs "smarter" innovation in the economy and other sectors so as to ensure an acceptable economic growth.
In times of economic crisis countries that have increased their investments in research and innovation have better prospects of getting out of crisis, the report reads.