European technology companies' share of global R&D spending continues to decline. An analysis by FESDI based on the European Commission's Industrial R&D Investment Scoreboard shows that between 2005 and 2024, Europe's (including the UK and Switzerland) share of global R&D spending will fall from 23% to 8%; the US share will rise from 47% to 62%, while China's will increase from near zero to 15%. Significant divergence also exists within Europe: the shares of Germany, France, the UK, and Italy will fall from 6.5%, 3.6%, 2.8%, and 1.3% to 2.4%, 0.9%, 0.3%, and 0.4% respectively, totaling only 4%, lower than South Korea's 4.3%. Analyst Oliver Coste attributes this trend to factors such as regulation, taxation, and labor market systems, believing that related policies may increase the costs of innovation and expansion for companies.
