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Gross Research And Development Expenditure (GERD)
Indicator detail
8.1.1 Gross Research and Development Expenditure (GERD)
Metadata
| Relevance/rationale of the indicator (resp. why the indicator was chosen to measure the target and how it is suitable for these purposes) | Research and development activity plays a significant role in the creation of new knowledge and through its transformation into new or innovative products, technologies or processes is a necessary prerequisite for stable and long-term sustainable economic growth of the company. Without an adequate amount of financial support from both the state and the business sector, it cannot be expected that research and development in the Czech Republic will bring internationally competitive knowledge, innovations and technologies that will participate in increasing the productivity and employment of the Czech economy, and thus indirectly on social cohesion and sustainable development of society. |
| Target value of the indicator and its evaluation | Total R&D expenditures in international comparison are usually measured as a share of GDP. This ratio is called R&D Intensity. This indicator was included among the indicators for evaluation of the targets of the Europe 2020 strategy in individual EU states. The differences between the states in their expenditures on R&D are influenced apart from size, development and focus of individual economies also by the price levels of individual states. Therefore it is recommended to use for the international comparisons, apart from the R&D intensity, which is influenced by different GDP values in individual countries, total R&D expenditures per capita in PPP. GERD as % GDP (R&D intensity): 2020 (2.0 %), 2025 (2.5 %) 2030 (3.0 %), i.e. an increase of 0.1 percentage point every year; of which 1 % government source of funds and 1.5 % (in 2025), 2 % (in 2030) business enterprise source of funds. See more: Innovation Strategy of the Czech Republic 2019-2030 (https://www.mzv.cz/file/3569261/Innovation_Strategy_of_the_CR_2019_2030._The_Country_for_the_Future.pdf) or National Research, Development and Innovation Policy of the Czech Republic 2021+ (https://www.mvcr.cz/ViewFile.aspx?docid=22266947) |
| Definition | Total expenditure on research and development is monitored using the indicator of the so-called gross domestic expenditure on research and development, which is denoted by the English abbreviation GERD (Gross Domestic Expenditure on R&D). This indicator includes all non-investment and investment expenditure spent on research in the monitored year and development carried out on the territory of a given state, regardless of the source and method of their financing. Research and experimental development comprise creative and systematic work undertaken in order to increase the stock of knowledge – including knowledge of humankind, culture and society – and to devise new applications of available knowledge. For more information see: Guidelines for Collecting and Reporting Data on Research and Experimental Development, Frascati Manual, OECD, 2015 (https://www.oecd.org/publications/frascati-manual-2015-9789264239012-en.htm). |
| Measuring unit | Million CZK, % |
| Indicator disaggregation | Breakdown by: Type of R&D costs Source of R&D funds Sector of R&D performance Type of R&D Field of R&D (FORD classification) Industry (CZ-NACE section) Region (CZ-NUTS 3) |
| Reference period (resp. the period to which the indicator relates) | Year |
| Related geographical area | CZ (NUTS 0), region (NUTS 3) |
| Comment | Since 2010, the total expenditure on research and development (R&D) in Czechia has more than doubled, reaching a record CZK 123.3 billion in 2022. For the fifth time in a row, the GERD indicator has crossed the threshold of one hundred billion crowns. Between 2010 and 2022 almost 1.2 thousand billion CZK was spent on R&D carried out in the territory of the Czech Republic. Labour costs for R&D personnel grew by an average of 10% per year between 2015 and 2022, this is a much higher growth rate than in the case of total R&D expenditures. In 2022, CZK 76 billion was spent on R&D related labour costs, i.e. 57% of the total R&D expenditure. The same year, R&D capital expenditures (acquisition of new buildings, machines or technologies) accounted for less than 10% of GERD, in absolute terms it was CZK 11.9 billion. These capital expenditures have not changed significantly in the last five years. In 2022, more than half of the total R&D expenditure was spent in Prague and Brno. Business enterprise sector represents the most important source of R&D funds in the Czech Republic. In 2022, this source of funds accounted for 61% of total R&D expenditures. In absolute terms, domestic or foreign enterprises invested CZK 81.7 billion on R&D carried out on our territory. Especially between 2012 and 2015, EU was an important source of R&D funding. When looking at R&D intensity, i.e. GERD as a percentage of GDP, data show an increase from 1.33% in 2010 to over 1.9% in 2014 and 2015 due to the high uptake of EU grants. This was followed by a decline to 1.67% in 2016. After 2016, there was a steady increase in R&D intensity, with the 2.00% threshold being reached for the first time in 2021. In 2022 there was a little decrease to 1.96%. |
| Update periodicity | Annually |
| Time coverage since | 2010 |
| Time coverage until | 2022 |
| Time series available at the data provider since | 2005 |
| Data publication date (resp. the date when the data provider publishes (regularly) data; it is given in the format T + the number of days, months or years when T is the end of the reference period) | T+10m |
| Contact point - data provider - e-mail | marek.stampach@csu.gov.cz |
| Contact point - data provider - name | Martek Štampach |
| Data source | Czech Statistical Office |
| Data origin | Annual R&D survey |
| Links to detailed metadata or methodology | https://www.csu.gov.cz/csu/czso/statistika_vyzkumu_a_vyvoje |
| Links to international comparison | https://ec.europa.eu/eurostat/web/science-technology-innovation/database oe.cd/rds https://www.oecd.org/sti/msti.htm http://uis.unesco.org/en/topic/research-and-development |