List of Top 100 enterprises investing in R&D in 2007 published

The top 10 consists of: Portugal Telecom Group, BCP Group, BPI, Nokia Siemens Networks Portugal, Santander Group, EDP Group, UNICER Group, BIAL, Volkswagen Group, José de Melo Group.

This list is based on the results of the 2007 Survey on National Scientific Potential and Technology (IPCTN07) and was published following authorisation from the companies involved.

In actual fact, Portugal saw the highest growth in R&D activities in EU countries between 2005 and 2007, with the figure now representing for the first time 1.2% of Portuguese GDP (1,972 million Euros against 1,201 million Euros in 2005), matching the levels met by Spain (1.2%), hot on the heels of Ireland (1.3%) and overtaking the data available for Italy (1.1%).

Growth in R&D spending overwhelmingly took place in enterprises, a sector where R&D spending more than doubled from 2005 to 2007, reaching 0.62% of GDP and 1,010 million Euros, thereby overtaking, for the first time, the total R&D spending in other institutions (universities, private not-for-profit associations and State institutions). The data also show a hitherto unseen increase in Portugal in the number of enterprises conducting R&D activities, which grew from roughly 930 in 2005 to more than 1,500 in 2007.

The increase in company R&D spending reflects the public investment that has gone this area and its consolidation during this legislature, as well as the private’s sector efforts to match the scientific development and installed technology capacity in Portugal. After the Repositioning and Reinforcing Tax Incentives in Europe for R&D in Enterprises in 2005 and the recent major reinforcement in early 2009 Portugal adopts highest level of tax incentives in Europe for Enterprises investing in R&D, allowing a tax deduction of up to 82.5% of R&D investment. The number of companies that have used the SIFIDE -Tax Breaks for Entrepreneurial R&D System since 2005 has more than doubled compared with the number that applied during the entire previous period (1997 to 2003).

Of further note with regard to the Enterprises sector:

• The financial and insurance services sector and the I.T. and communications sector spent the most on R&D and saw the biggest increases between 2005 and 2007, together with the automobile industry and energy sectors. All these sectors multiplied their spending on R&D activities at least six fold. The food industry’s R&D spending increased 3.5 times, whereas the pharmaceutical industry’s spending rose 1.5 times over this period.
• Company spending on R&D still tends to be predominantly funded by the companies' own funds (roughly 89% of the total, excluding tax incentives). The percentage of public funding of company R&D spending remained constant from 2005 to 2007, representing 4% of total private R&D spending.

A summary of the IPCTN 2007 results can be found at: IPCTN 2007 – Statistical Summaries (text in Portuguese)