Israel still number 1 for business R&D spending

Nearly 50% of research and development spending financed overseas, according to Central Bureau of Statistics data.

August 7, 2012 22:46
1 minute read.
Peres with Google's Brin

Peres with Google's Brin 370. (photo credit: Moshe Milnewr/ GPO )


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Israeli business expenditure on research and development was higher proportionately to gross domestic product than any other country in the OECD in 2010, according to data released by the Central Bureau of Statistics Tuesday.

The business sector spent NIS 32.3 billion, or 3.4 percent of GDP, on R&D in 2010. This figure was roughly equivalent in real terms to the amount spent on R&D the previous year. At the same time, the number of R&D-related jobs rose about 5% to 53,200, while R&D-related expenses decreased 4% per worker.

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Development centers operated by multinational corporations contributed 40% of overall business sector R&D spending in 2010, down from 44% the previous year. This ended a trend seen for four consecutive years in which the development centers constituted the main source of growth of R&D activities in Israel.

Israel has led the world in R&D spending for many years, but this has been financed mainly by overseas-based parent companies and by private foreign investors, the bureau said. It showed that 49% of R&D spending was financed by overseas sources in 2010, but the figure reached 73% when only the computing services industry was taken into account.

State financing of business sector R&D rose slightly to NIS 1.4b., mainly because of an increased amount of funding from the Industry, Trade and Labor Ministry’s Office of the Chief Scientist.

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