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Eurostat: In 2004, 1.90 % of GDP (almost EUR 200 billion) was spent on R&D in the EU-25. The highest R&D intensities, above the 2010 target of 3 % set at the Lisbon Summit in 2000, were observed in Sweden (3.74 %), Finland (3.51 %) and Iceland (3.01 %) [Japan: 3.15%, US: 2.65%]. More than 60% of total R&D expenditure was spent in 3 EU countries: Germany (EUR 55 billion), France (EUR 36 billion) and the United Kingdom (EUR 30 billion).

The business sector was the major source of financing of R&D, providing 54% of funding, but this percentage ranks behind Japan (75%), the United States (63%) and China (60%). The government sector comes in second position and provided 35 % of the EU-25 R&D funds against 31 % in China and 30 % in the US, but only 18 % in Japan [rest: higher education sector, private non profit sector, funding from abroad].

Eight European regions recorded an R&D intensity of more than 3 % in 2002. Braunschweig in Germany (7.1 %) leads, ahead of Pohjois-Suomi in Finland (4.2 %), East of England in the UK (3.9 %), Stredni Cechy in the Czech Republic (3.5 %), Vienna in Austria and Île de France in France (3.4 % respectively). [Source]

europe_rd_nuts2
Dirk Eddelbuettel (guest) meinte am 25. Feb, 05:59:
Braunschweig at the highest R/D intensity by a wide margin?
I have a bit of a hard time buying the result of my birthplace and former home town coming in head and shoulders above everybody else. In particular the very substantial lead of Braunschweig to the runner up with a difference of 2.9% -- equal to the high cutoff point for the whole sample -- strikes me as odd, as does the level itself at 7.1%. The area is home to some manufacturing, a technical university and has VW head quarters in its backyard. But still ... 
Mahalanobis antwortete am 25. Feb, 17:09:
The
"district-free town" Brunswick already labels itself the high tech city at the heart of Europe and they'd like to become the City of Science in 2007. But here we are talking about DE911 (NUTS 3, city) and not DE91 (NUTS 2, administrative region). If I'm not mistaken, a former classmate of mine once worked in Göttingen, but the mere fact that Göttingen belongs to the region Braunschweig is probably all I know about Braunschweig... ;-D

Maybe it's also noteworthy that Brunswick (city) comes in only on place 96 in Manager Magazine's competitiveness report. One definitely has to take a closer look at the data. 
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