This document presents a methodology for estimating government budget allocations for research and development (GBARD) by industry and further disaggregating it into information and communication technology (ICT) and non-ICT GBARD within each industry. The methodology uses a correspondence between the Nomenclature for the Analysis and Comparison of Scientific Programmes and Budgets (NABS) classification and NACE industry classification, along with labor cost data, to distribute GBARD data from Eurostat across industries. The results provide estimates of GBARD and ICT GBARD for each Member State and the EU28 for 2004-2013 at a detailed industry level following revisions to the NACE classification.

1. This project has received funding from the European Union’s Seventh Framework Programme for
research, technological development and demonstration under grant agreement No. 612774
A Methodology for Disentangling Public
Funded R&D (GBARD) by Industries
Matilde Mas (University of Valencia and Ivie)
Eva Benages (Ivie)
Juan Fernández de Guevara (University of Valencia and Ivie)
Thessaloniki, SEM Conference. 2016

2. 1. Introduction
2. Public transfers in R&D
3. Disaggregation of pubic funded R&D (GBARD) by
industries
4. From GBARD to ICT GBARD by industries
5. Results
6. Main issues
Introduction
2

3. • SPINTAN Project aims, among other goals, to build a database
that comprises investment and capital stock of intangibles in
the public sector.
• The project complements previous projects (INTAN-Invest,
COINVEST and INNODRIVE) which covered the market sector (8
industries): SPINTAN covers the non-market sector.
• SPINTAN conceptual framework (Corrado, Haskel and Jona-
Lasinio, 2015) clarifies:
1. Definition of the non-market sector
2. Assets boundaries in the context of intangibles in the non-market sector
3. Implications to the SNA of the inclusion of public intangibles
4. The return of non-market public capital
5. Function of the government related to SPINTAN
6. Which government expenditures have to be capitalized
Introduction
3

4. • Which part of the government expenditures have to be
capitalized?
– This question is particularly important given the fact that public sector
transfers (current and capital expenditures) are not included as
government GFCF.
• They are habitually considered expenditures of the industries that receive the transfer.
– Need for measurement of the public transfer for the acquisition of
intangible assets, particularly in the case of R&D.
• The relevance of knowing the contribution of the public sector to
R&D goes beyond of the SPINTAN project.
– Target 2 of Europe 2020 strategy (EC) is aimed to reach 3% of the EU's
GDP invested in R&D.
• Action 55 of the Digital Agenda for Europe (DAE,first flagship initiative of E2020) aims for
Member States to double their annual public spending on ICT R&D.
– However, monitoring trends in the public funding of ICT R&D is not
straightforward given the lack of readily data.
Introduction
4

5. • The aim of this paper is to:
1. To develop a methodology for estimating GBARD by industry and
2. To disaggregate it into ICT and non-ICT GBARD within each industry.
• Based on an homogenous industry classification (following NACE Rev. 2)
• High level of industry disaggregation: 37 industries, of which 7 ICT industries (following
OECD, 2007, ICT sector definition)
• For the 2004-2013 period
• For Member States and EU28
3. To analyse the results of applying the proposed methodology
• GBAORD by industry and country
• ICT GBAORD by industry and country
• In the methodology developed, the approach of Stančik (2012) and
Stančik and Rohman (2014) is the starting point, but modified to achieve
the objectives of this paper.
Introduction
5

6. • How to measure public transfers in R&D, i.e. the
resources the government endow to R&D?
• Frascati Manual (OECD, 2015):
– Performance-based approach: aggregation of the amount each
industry receive for their intramural R&D.
• Recommended by OECD (2015)
• Government-financed GERD (Gross Expenditure on R&D)
• Disadvantages:
1. As it is based on surveys delays in the information are habitual
2. Performers are not necessarily able to link their gov. funding to policy objectives.
– Funder-based approach. GBARD (Government budget allocations for
R&D): aggregation of the sums committed by government to fund
other industries R&D.
• Useful to increase the timeliness of R&D statistics.
• Released by socioeconomic objectives (NABS chapters).
Public transfers in R&D
6

7. • None of the two approaches suffice the SPINTAN
objectives:
– SPINTAN needs to compute how the public funding of R&D is
distributed by NACE industries, instead of the NABS chapters.
• We develop a methodology that allows disentangling which
part of the Eurostat GBARD can be attributed to various
different NACE industries.
• Additional step: estimate also which part of the public
funding invested in each NACE industry is addressed to ICT
assets.
• In the methodology developed, Stančik (2012) and Stančik
and Rohman ’s (2014) approach is the starting point.
Public transfers in R&D
7

8. • GBARD: measure of the government expenditure on R&D based on budgetary
information (Frascati Manual).
• It is based on the funder rather than the performer.
• It requires to identify all the budget items involving R&D and to measure or
estimate their R&D content in terms of funding.
• “Government” should cover central (or federal) and provincial (or state)
government, when its contribution is significant (public enterprises excluded).
• It covers government-financed R&D performed in government
establishments but also government-financed R&D in the other national
sectors as well as abroad (including international organisations).
• These estimates are less accurate than performance-based data but, as
they are derived from the budgets, they can be linked to policies through
classification by “objectives” or “goals”.
Public transfers in R&D
8

9. NABS* chapters
1Exploration and exploitation of the earth
2Environment
3Exploration and exploitation of space
4Transport, telecommunication and other infrastructures
5Energy
6Industrial production and technology
7Health
8Agriculture
9Education
10Culture, recreation, religion and mass media
11Political and social systems, structures and processes
12
General advancement of knowledge: R&D financed from General University Funds
(GUF)
13General advancement of knowledge: R&D financed from other sources than GUF
14Defence
• Available GBARD data from Eurostat:
– EU28 and Member States
– 2004-2014 for most Member States and 2006-2014 for the EU aggregates
– Classified by socio-economic objective (SEO), using the NABS 2007 classification:
Public transfers in R&D
9
* Nomenclature for the Analysis and Comparison of Scientific Programmes and Budgets.

10. • What we are looking for is a correspondence between
NABS chapters and NACE industries, in order to break
down GBARD by NACE industries.
• For this reason, we need:
• A correspondence between NABS and NACE classifications
• Weights to distribute GBARD of each NABS chapter among NACE
industries since each NABS is generally distributed in more than one
industry.
Disaggregation of Public Funded R&D (GBARD)
10
GBAORDbyNABS
NABS 1
NABS 2
…
…
…
NABS 14
GBAORDbyNACE
NACE 01-03
NACE 05-09
NACE 10-12
…
…
…

11. • Stančik, J. (2012) (http://ftp.jrc.es/EURdoc/JRC69978.pdf) contribution
to the PREDICT project (European Commission) proposed a
NACE→NABS correspondence.
• However, we have to take the other way around since we need a
NABS → NACE.
• However, we use their NACE-NABS correspondence as a starting
point
Disaggregation of Public Funded R&D (GBARD)
11
Aggregation
of
NACE
NABS 1
NABS 2
…
…
…
…
…
NABS 14
NACE 01-03
NACE 05-09
NACE 10-12
…
…
…
…
NACE 99
NACE
classification
NABS
classification
NACE 01-03
NACE 05-09
NACE 10-12
…
…
…
…
NACE 99
NABS 1
NABS2
…
…
…
…
…
NABS 14
Disaggregation
of
NABS
NACE
classification
NABS
classification
Stančík, J. (2012): What we need:

12. • In addition, there is a change of NACE classification in
2008.
• Therefore, the NABS → NACE correspondence requires,
in fact, two correspondences:
• NABS 2007 → NACE Rev. 1.1 → NACE Rev. 2 (2004-2007)
• NABS 2007 → NACE Rev. 2 (2008-2013)
• Thus, all the steps of the estimation have to be applied
twice, once for each NACE revision.
Disaggregation of Public Funded R&D (GBARD)
12

13. Weights:
• Since each NABS corresponds to more than one NACE, we need a
proxy variable to estimate the distribution weights of each NABS
among NACE (Rev. 1.1 and Rev. 2) industries.
• We follow Stančík, J., & Rohman, I.K. (2014): Public ICT R&D funding
in the European Union [Technical Report]. Seville: JRC-IPTS,
European Commission. Forthcoming.
• Proxy selected: total labour costs (salaries times hours worked) of
employees with higher education (ISCED codes 5a, 5b and 6)
• Assumption: the distribution of government R&D expenditures by industries
is similar to the distribution of labour costs of the most qualified employees.
Disaggregation of Public Funded R&D (GBARD)
13

14. • Statistical information:
• GBARD by NABS from Eurostat
• LFS (Labour Force Statistics): Hours worked by employees with higher
education by 3 digits NACE industries.
– Tailored request to Eurostat for the SPINTAN project.
• SES (Structure of Earnings Survey): Wages of employees with higher
education by 3 digits NACE industries 2006 (NACE Rev. 1.1) and 2010
(NACE Rev. 2).
Data for the remaining years are extrapolated.
– Tailored request to Eurostat for SPINTAN project.
Disaggregation of Public Funded R&D (GBARD)
14

15. • Starting point: Stančik, J. (2012) and Stančík, J. & Rohman, I. K.(2014)
correspondence between NABS and NACE.
• We use this correspondence to break down GBARD by NABS into
NACEs using labour costs as weights.
NABS-NACE correspondence
15
NABS
codes
NACE
codes
Labour
costs
Weights
NABS 1
NACE 011 100 15%
NACE 122 200 31%
NACE 221 250 38%
NACE 325 100 15%
-
Total NACEs
assigned to
NABS 1
650 100%
Table 1
Example: NABS 1 correspondence
and estimation of weights
NABS 1
NABS 2
…
…
…
…
…
…
NABS 13
NABS 14
NACE 011
…
…
NACE 122
…
NACE 221
…
NACE 325
…
NACE 990
Labourcostsby
NACE(higher
education)

16. • However, there are some NACE codes that are assigned to more
than one NABS.
• We have to breakdown labour costs of the NACEs affected to
calculate the weights.
• In these cases, we use the weight of the GBARD in the NABS
involved to assign the labour costs of each NACE code to the
corresponding NABS chapters
• For example, NACE Rev.2 code 512 (Freight air transport and space transport) is assigned to NABS 3
(Exploration and exploitation of space) and 4 (Transport, telecommunication and other infrastructures), but
we don’t have information about how much of the labour costs of higher education employees in this
industry should be assigned to each NABS.
• Therefore, we take as weights to distribute NACE 512 sector labour costs among NABS the weight of
GBARD figures of each NABS (differentiating by country and year).
NABS-NACE correspondence
16
NACE
codes
Labour
costs
NABS
codes
GBARD Weights
Labour
costs by
NABS
NACE
512
1000
NABS 3 100 80% 800
NABS 4 25 20% 200
Labour costs of employees
with higher education
assigned
to NABS 3
Labour costs of
employees
with higher education
assigned
to NABS 4
NABS 1
…
NABS 3
NABS 4
…
NABS 14
NACE 011
…
NACE 512
…
…
NACE 990
?
Table 2

17. • Once the labour costs of employees with higher education
at 3 digits NACE are assigned to each NABS, the weight
of these costs are calculated by NACE within the same
NABS
• This weight will be used to estimate GBARD figures by
industries.
• The calculations are made for each country and year.
• For each NACE industry k (in a given year and country):
where j= NABS chapter, k= NACE industry and labour costs are hours
worked times wages for employees with higher education.
* See in Tables 1, 2 and 3 examples of how these weights are
computed
Public Funded R&D (GBARD) by industry
17
𝐺𝐵𝐴𝑂𝑅𝐷 𝑘 =
𝑗=1
14
𝐺𝐵𝐴𝑂𝑅𝐷 𝑗 ∗
𝐿𝑎𝑏𝑜𝑢𝑟 𝑐𝑜𝑠𝑡𝑠𝑗,𝑘
𝑘∈𝑗
𝐿𝑎𝑏𝑜𝑢𝑟 𝑐𝑜𝑠𝑡𝑠𝑗,𝑘

18. Example of the estimation procedure
18
Table 3
Example: NABS 3 and 4 distribution by NACE
industries
and estimation of weights
Assignment of labour costs (higher
education)
NACE
codes
Labour
costs
NABS
codes
GBARD Weights
Labour
costs by
NABS
NACE
512
1000
NABS 3 100 80% 800
NABS 4 25 20% 200
Table 2
Example: Distribution of NACE 512 between
NABS 3 and 4 using GBARD weights
NABS
codes
GBARD by
NABS
NACE
codes
Labour
costs
higher educ. Weights
GBARD by
NACE
NABS 3 4,000
NACE 302 100 8% 333
NACE 511 200 17% 667
NACE 512 800 67% 2,667
NACE 611 100 8% 333
Total NACEs
assigned to
NABS 3 1200 100% 4,000
NABS 4 15,000
NACE 301 150 8% 1,125
NACE 421 600 30% 4,500
NACE 512 200 10% 1,500
NACE 711 300 15% 2,250
NACE 712 750 38% 5,625
Total NACEs
assigned to
NABS 3 2000 100% 15,000
Procedure for NACEs assigned
to more than one NABS
GBAORD NACE 512=2,667+1,500= 4,167
NABS 1
NABS 2
NABS 3
NABS4
NABS 5
…
…
…
…
…
…
…
NABS 13
NABS 14
…
NACE 301
NACE 302
NACE 421
…
NACE 511
NACE 512
…
NACE 611
…
NACE 711
NACE 712
…

19. • As LFS and SES data are classified following different revisions of NACE
classifications:
• NACE Rev.1.1 for the period 2004-2007
• NACE Rev.2 for the period 2008-2013
• For this reason we apply the correspondence between NACE Rev.1.1 and
NACE Rev.2 to convert GBARD by NACE Rev. 1.1.
– Final NACE Classification: 37 2-digits NACE Rev.2 industries comprising 7
ICT sectors (OECD classification).
–Data on GBAORD by NACE has been smoothed to take into account
the effects on the dataset of the NACE revision in 2008. The procedure
followed is the estimation of a linear regression with a trend and a
step dummy for 2008-2013.
Several adjustments: Correspondence between NACE Rev.1.1 and
NACE Rev.2
19

20. • Final NACE Classification: 37 2-digits NACE Rev.2 industries, differentiating ICT sectors:
Final NACE Rev.2 industry classification
20
Industry description NACE Rev. 2 code
1 Agriculture, forestry and fishing 01-03
2 Mining and quarrying 05-09
3 Manufacture of food products, beverages and tobacco products 10-12
4 Manufacture of textiles, apparel, leather and related products 13-15
5 Manufacture of wood and paper products, and printing 16-18
6 Manufacture of coke, and refined petroleum products 19
7 Manufacture of chemicals and chemical products 20
8 Manufacture of pharmaceuticals, medicinal chemical and botanical products 21
9 Manufacture of rubber and plastics products, and other non-metallic mineral products 22-23
10 Manufacture of basic metals and fabricated metal products, except mach. & eq. 24-25
11 Manufacture of computer, electronic and optical products (except ICT industries) 26(nonICT)
12 Manufacture of electronic components and boards ICT261
13 Manufacture of computers and peripheral equipment ICT262
14 Manufacture of communication equipment ICT263
15 Manufacture of consumer electronics ICT264
16 Manufacture of magnetic and optical media ICT268
17 Manufacture of electrical equipment 27
18 Manufacture of machinery and equipment n.e.c. 28
19 Manufacture of transport equipment 29-30
20 Other manufacturing, and repair and installation of machinery and equipment 31-33
21 Electricity, gas, steam and air-conditioning supply 35
22 Water supply, sewerage, waste management and remediation 36-39
23 Construction 41-43
24 Transportation and storage 49-53
25 Publishing, audiovisual and broadcasting activities (except ICT industries) 58-60(nonICT)
26 ICT Computer and related activities ICT5820+62+631+951
27 Telecommunications ICT61
28 Computer programming, consultancy and related activ.; Information service activ. (exc. ICT) 62-63(nonICT)
29
Legal and accounting, head offices, management consultancy, architectural and engineering activ; technical testing and
analysis
69-71
30 Scientific research and development 72
31 Advertising and market research; other professional, scientific and technical activities; veterinary activities 73-75
32 Administrative and support service activities 77-82
33 Public administration and defence; compulsory social security 84
34 Education 85
35 Human health and social work 86-88
36 Arts, entertainment and recreation 90-93
37 Activities of membership organisations 94

21. 2nd Step: Once GBARD by NACE industries has been computed, we
take a further step: we split GBARD of each industry and year into
ICT and non-ICT “assets”.
• We again follow Stančík, J., & Rohman, I.K. (2014): we apply the ICT
share to total GBARD for each country, industry and year:
where k= NACE industry and
• In the definition of the ICT occupations we follow Stančik, J. (2012) and Stančík, J. &
Rohman, I. K.(2014): ISCO-88 codes: 123, 213, 214, 231, 311, 312 and 313
ISCO-08 codes: 133, 215, 216, 235, 243, 251, 252, 351, 352 and 742.
From GBARD to ICT GBORD
21
𝐼𝐶𝑇 𝐺𝐵𝐴𝑂𝑅𝐷 𝑘 = 𝐺𝐵𝐴𝑂𝑅𝐷 𝑘 ∗ 𝐼𝐶𝑇𝑠ℎ𝑎𝑟𝑒 𝑘
𝐼𝐶𝑇 𝑠ℎ𝑎𝑟𝑒 𝑘 =
𝐿𝑎𝑏𝑜𝑢𝑟 𝑐𝑜𝑠𝑡𝑠 𝑓𝑜𝑟 𝑒𝑚𝑝𝑙𝑜𝑦𝑒𝑒𝑠 𝑤𝑖𝑡ℎ ℎ𝑖𝑔ℎ𝑒𝑟 𝑒𝑑𝑢𝑐𝑎𝑡𝑖𝑜𝑛 𝒊𝒏 𝑰𝑪𝑻 𝒐𝒄𝒄𝒖𝒑𝒂𝒕𝒊𝒐𝒏𝒔
𝐿𝑎𝑏𝑜𝑢𝑟 𝑐𝑜𝑠𝑡𝑠 𝑓𝑜𝑟 𝑒𝑚𝑝𝑙𝑜𝑦𝑒𝑒𝑠 𝑤𝑖𝑡ℎ ℎ𝑖𝑔ℎ𝑒𝑟 𝑒𝑑𝑢𝑐𝑎𝑡𝑖𝑜𝑛

22. 1. GBARD
(Eurostat data):
22
Results

23. Results
23
GBARD by Member State (2013). Millions of euros
Source: Eurostat
25,354
13,986
10,860
8,324
5,310
4,602
3,556
2,621
2,547
2,538
1,997
1,579
1,438
1,005
773
711
601
316
300
292
266
190
158
126
102
59
32
22
0
5,000
10,000
15,000
20,000
25,000
30,000
Total EU-28 GBARD:
90,506 million euros

24. Results
24
GBARD distribution by Member State (2013). Percentage
Source: Eurostat
Germany
28.3%
France
15.6%
United Kingdom
12.1%
Italy
9.3%
Spain
5.9%
Netherlands
5.1%
Sweden
4.0%
Austria
2.9%
Denmark
2.8%
Belgium
2.8%
Finland
2.2%
Portugal
1.8%
Poland
1.6%
Czech Republic
1.1%
Ireland
0.9%
Greece
0.8%
Hungary
0.7%
Croatia 0.4%
Romania 0.3%
Luxembourg 0.3%
Slovakia 0.3%
Slovenia 0.2%
Estonia 0.2%
Others
5.5%

25. Results
25
GBARD intensity (GBARD / GDP) by Member State (2013). Percentage
Source: Eurostat
0.0%
0.2%
0.4%
0.6%
0.8%
1.0%
1.2%

26. Results
26
Distribution of GBARD by NABS chapters (2013). EU28. Percentage
Source: Eurostat
General advancement of
knowledge: R&D
financed from General
University Funds (GUF)
34.7%
General advancement of
knowledge: R&D
financed from other
sources than GUF
17.9%
Industrial
production and
technology
9.2%
Health
8.8%
Exploration and
exploitation of space
5.2%
Defence
4.6%
Energy
4.1%
Agriculture
3.3%
Political and social
systems, structures and
processes
2.8%
Transport,
telecommunication and
other infrastructures
2.7%
Environment
2.6%
Exploration and
exploitation of the earth
2.0%
Education
1.2%
Culture, recreation,
religion and mass media
1.1%

27. GBARD and ICT GBARD by NACE
(our estimation):
27
Results

28. Results
28
GBARD by NACE Rev. 2 industries. EU28 (2006-2013). Millions of euros
NACE Rev. 2 industries 2006 2007 2008 2009 2010 2011 2012 2013
1. Agriculture, forestry and fishing (01-03) 1,459 1,452 1,451 1,424 1,381 1,331 1,264 1,224
2. Mining and quarrying (05-09) 551 648 737 803 848 879 888 907
3. Manufacture of food products, beverages and tobacco products (10-12) 641 664 687 695 693 684 664 655
4. Manufacture of textiles, apparel, leather and related products (13-15) 128 142 154 162 167 170 169 170
5. Manufacture of wood and paper products, and printing (16-18) 309 329 349 360 364 365 358 357
6. Manufacture of coke, and refined petroleum products (19) 0 32 66 94 117 136 149 162
7. Manufacture of chemicals and chemical products (20) 1,206 1,173 1,147 1,104 1,052 997 932 890
8. Manufacture of pharmaceuticals, medicinal chemical and botanical products (21) 501 525 549 560 562 558 545 540
9. Manufacture of rubber and plastics products, and other non-metallic mineral
products (22-23)
454 478 500 511 514 511 498 495
10. Manufacture of basic metals and fabricated metal products, except machinery
and equipment (24-25)
1,071 1,034 1,004 960 909 856 796 756
11. Manufacture of computer, electronic and optical products (except ICT industries)
(26, exc. 261-264 and 268)
342 350 359 360 356 349 337 331
12. Manufacture of electronic components and boards (261) 150 170 188 201 209 214 214 217
13. Manufacture of computers and peripheral equipment (262) 0 15 41 64 82 97 107 118
14. Manufacture of communication equipment (263) 158 163 168 169 168 166 160 158
15. Manufacture of consumer electronics (264) 30 34 37 39 40 41 40 41
16. Manufacture of magnetic and optical media (268) 0 0 0 1 3 5 6 7
17. Manufacture of electrical equipment (27) 335 364 392 410 419 423 418 420
18. Manufacture of machinery and equipment n.e.c. (28) 1,444 1,523 1,599 1,637 1,648 1,641 1,604 1,594
19. Manufacture of transport equipment (29-30) 1,381 1,277 1,188 1,088 987 892 795 724
20. Other manufacturing, and repair and installation of machinery and equipment
(31-33)
657 643 633 612 586 559 525 503
21. Electricity, gas, steam and air-conditioning supply (35) 2,435 2,569 2,699 2,764 2,783 2,772 2,710 2,693
22. Water supply, sewerage, waste management and remediation (36-39) 1,447 1,422 1,405 1,364 1,310 1,252 1,179 1,134
23. Construction (41-43) 1,487 1,374 1,278 1,171 1,062 959 855 778
24. Transportation and storage (49-53) 1,827 1,738 1,666 1,572 1,469 1,368 1,257 1,180
25. Publishing, audiovisual and broadcasting activities (except ICT industries) (58-
60, exc. 582)
360 374 388 393 393 388 377 373
26. ICT computer and related activities (5820, 62, 631 and 951) 1,712 1,900 2,075 2,191 2,262 2,300 2,288 2,309
27. Telecommunications (61) 537 489 448 404 361 320 280 250
28. Information service activities (except ICT industries) (63, exc. 631) 105 99 94 89 82 76 70 65
29. Legal and accounting; management consultancy; ; technical testing and analysis
and architectural and engineering activities (69-71)
8,185 8,275 8,387 8,332 8,173 7,958 7,624 7,446
30. Scientific research and development (72) 14,537 15,204 15,855 16,141 16,172 16,040 15,619 15,476
31. Advertising and market research; other professional, scientific and technical
activities and Veterinary activities (73-75)
101 164 220 266 301 329 346 364
32. Administrative and support service activities (77-82) 0 0 0 0 2 247 448 624
33. Public administration and defence; compulsory social security (84) 9,328 9,109 8,947 8,641 8,261 7,857 7,367 7,054
34. Education (85) 22,329 25,186 27,826 29,650 30,827 31,527 31,504 31,910
35. Human health and social work (86-88) 5,167 5,965 6,699 7,225 7,582 7,812 7,854 7,995
36. Arts, entertainment and recreation (90-93) 237 264 288 304 314 320 318 321
37. Activities of membership organisations (94) 271 279 287 289 286 282 272 268
TOTAL 80,881 85,428 89,813 92,048 92,748 92,682 90,835 90,506

29. 29
GBARD by NACE Rev. 2 industries. EU28 (2006-2013). Percentage
NACE Rev. 2 industries 2006 2007 2008 2009 2010 2011 2012 2013
1. Agriculture, forestry and fishing (01-03) 1.80 1.70 1.62 1.55 1.49 1.44 1.39 1.35
2. Mining and quarrying (05-09) 0.68 0.76 0.82 0.87 0.91 0.95 0.98 1.00
3. Manufacture of food products, beverages and tobacco products (10-12) 0.79 0.78 0.77 0.76 0.75 0.74 0.73 0.72
4. Manufacture of textiles, apparel, leather and related products (13-15) 0.16 0.17 0.17 0.18 0.18 0.18 0.19 0.19
5. Manufacture of wood and paper products, and printing (16-18) 0.38 0.39 0.39 0.39 0.39 0.39 0.39 0.39
6. Manufacture of coke, and refined petroleum products (19) 0.00 0.04 0.07 0.10 0.13 0.15 0.16 0.18
7. Manufacture of chemicals and chemical products (20) 1.49 1.37 1.28 1.20 1.13 1.08 1.03 0.98
8. Manufacture of pharmaceuticals, medicinal chemical and botanical products
(21)
0.62 0.62 0.61 0.61 0.61 0.60 0.60 0.60
9. Manufacture of rubber and plastics products, and other non-metallic mineral
products (22-23)
0.56 0.56 0.56 0.56 0.55 0.55 0.55 0.55
10. Manufacture of basic metals and fabricated metal products, except machinery
and equipment (24-25)
1.32 1.21 1.12 1.04 0.98 0.92 0.88 0.84
11. Manufacture of computer, electronic and optical products (except ICT
industries) (26, exc. 261-264 and 268)
0.42 0.41 0.40 0.39 0.38 0.38 0.37 0.37
12. Manufacture of electronic components and boards (261) 0.19 0.20 0.21 0.22 0.23 0.23 0.24 0.24
13. Manufacture of computers and peripheral equipment (262) 0.00 0.02 0.05 0.07 0.09 0.10 0.12 0.13
14. Manufacture of communication equipment (263) 0.20 0.19 0.19 0.18 0.18 0.18 0.18 0.17
15. Manufacture of consumer electronics (264) 0.04 0.04 0.04 0.04 0.04 0.04 0.04 0.04
16. Manufacture of magnetic and optical media (268) 0.00 0.00 0.00 0.00 0.00 0.00 0.01 0.01
17. Manufacture of electrical equipment (27) 0.41 0.43 0.44 0.44 0.45 0.46 0.46 0.46
18. Manufacture of machinery and equipment n.e.c. (28) 1.79 1.78 1.78 1.78 1.78 1.77 1.77 1.76
19. Manufacture of transport equipment (29-30) 1.71 1.49 1.32 1.18 1.06 0.96 0.88 0.80
20. Other manufacturing, and repair and installation of machinery and equipment
(31-33)
0.81 0.75 0.70 0.67 0.63 0.60 0.58 0.56
21. Electricity, gas, steam and air-conditioning supply (35) 3.01 3.01 3.00 3.00 3.00 2.99 2.98 2.98
22. Water supply, sewerage, waste management and remediation (36-39) 1.79 1.66 1.56 1.48 1.41 1.35 1.30 1.25
23. Construction (41-43) 1.84 1.61 1.42 1.27 1.15 1.04 0.94 0.86
24. Transportation and storage (49-53) 2.26 2.03 1.86 1.71 1.58 1.48 1.38 1.30
25. Publishing, audiovisual and broadcasting activities (except ICT industries)
(58-60, exc. 582)
0.44 0.44 0.43 0.43 0.42 0.42 0.42 0.41
26. ICT computer and related activities (5820, 62, 631 and 951) 2.12 2.22 2.31 2.38 2.44 2.48 2.52 2.55
27. Telecommunications (61) 0.66 0.57 0.50 0.44 0.39 0.35 0.31 0.28
28. Information service activities (except ICT industries) (63, exc. 631) 0.13 0.12 0.11 0.10 0.09 0.08 0.08 0.07
29. Legal and accounting; management consultancy; ; technical testing and
analysis and architectural and engineering activities (69-71)
10.12 9.69 9.34 9.05 8.81 8.59 8.39 8.23
30. Scientific research and development (72) 17.97 17.80 17.65 17.54 17.44 17.31 17.19 17.10
31. Advertising and market research; other professional, scientific and technical
activities and Veterinary activities (73-75)
0.13 0.19 0.24 0.29 0.33 0.35 0.38 0.40
32. Administrative and support service activities (77-82) 0.00 0.00 0.00 0.00 0.00 0.27 0.49 0.69
33. Public administration and defence; compulsory social security (84) 11.53 10.66 9.96 9.39 8.91 8.48 8.11 7.79
34. Education (85) 27.61 29.48 30.98 32.21 33.24 34.02 34.68 35.26
35. Human health and social work (86-88) 6.39 6.98 7.46 7.85 8.18 8.43 8.65 8.83
36. Arts, entertainment and recreation (90-93) 0.29 0.31 0.32 0.33 0.34 0.34 0.35 0.35
37. Activities of membership organisations (94) 0.33 0.33 0.32 0.31 0.31 0.30 0.30 0.30
TOTAL 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
77.2%
GBARD in
2013
Results

30. 31
Education sector (NACE 85) share in GBARD. EU28 and Member States
(2013). Percentage
93.3
59.0
54.9 54.7
51.5 50.2
47.0 46.2
44.1 43.3
40.7 40.6 39.8
35.3
30.1
27.8 27.8
25.1 25.0
21.0 20.9
17.0 16.6 16.5
6.9 6.5
3.4 2.6 1.4
0
10
20
30
40
50
60
70
80
90
100
Results

31. 32
Human health and social services sector (NACE 86-87) share in GBARD.
EU28 and Member States (2013). Percentage
24.2
20.0
13.8
13.2 13.2
10.7 10.6 10.5 10.2
8.8 8.8
7.0 6.9 6.7 6.3 5.9 5.8 5.3 5.1 4.8 4.8
4.2 4.0
3.5
2.3 2.3 1.8
0.9
0.3
0
5
10
15
20
25
30
Results

32. 33
Scientific research and development sector (NACE 72) share in GBARD.
EU28 and Member States (2013). Percentage
51.3
41.6 41.6
38.6
36.4 35.4 34.6
32.0
30.9
29.5 28.6
27.2
24.7 24.4
22.0 21.8 21.2
19.1 18.8
17.5 17.1 17.0 17.0 16.6 16.6
11.5
7.3
2.0
0.0
0
10
20
30
40
50
60
Results

33. 37
ICT GBARD by NACE Rev. 2 industries. EU28 (2006-2013). Percentage
NACE Rev. 2 industries 2006 2007 2008 2009 2010 2011 2012 2013
1. Agriculture, forestry and fishing (01-03) 0.02 0.02 0.02 0.03 0.03 0.03 0.03 0.03
2. Mining and quarrying (05-09) 0.08 0.10 0.12 0.14 0.17 0.19 0.21 0.23
3. Manufacture of food products, beverages and tobacco products (10-12) 0.24 0.24 0.24 0.24 0.24 0.24 0.24 0.24
4. Manufacture of textiles, apparel, leather and related products (13-15) 0.01 0.02 0.03 0.04 0.05 0.05 0.06 0.07
5. Manufacture of wood and paper products, and printing (16-18) 0.23 0.23 0.22 0.22 0.21 0.21 0.20 0.20
6. Manufacture of coke, and refined petroleum products (19) 0.00 0.01 0.02 0.03 0.04 0.05 0.06 0.07
7. Manufacture of chemicals and chemical products (20) 0.56 0.55 0.54 0.53 0.53 0.53 0.53 0.53
8. Manufacture of pharmaceuticals, medicinal chemical and botanical products (21) 0.35 0.35 0.35 0.34 0.34 0.34 0.33 0.33
9. Manufacture of rubber and plastics products, and other non-metallic mineral products (22-23) 0.11 0.11 0.11 0.11 0.12 0.12 0.12 0.12
10. Manufacture of basic metals and fabricated metal products, except machinery and equipment (24-
25)
0.50 0.45 0.41 0.37 0.34 0.31 0.29 0.27
11. Manufacture of computer, electronic and optical products (except ICT industries) (26, exc. 261-264
and 268)
0.78 0.82 0.86 0.91 0.95 0.99 1.03 1.07
12. Manufacture of electronic components and boards (261) 0.38 0.41 0.42 0.43 0.44 0.45 0.45 0.45
13. Manufacture of computers and peripheral equipment (262) 0.00 0.14 0.37 0.56 0.72 0.87 0.99 1.11
14. Manufacture of communication equipment (263) 0.73 0.80 0.87 0.94 1.01 1.07 1.14 1.20
15. Manufacture of consumer electronics (264) 0.10 0.10 0.10 0.10 0.10 0.10 0.09 0.09
16. Manufacture of magnetic and optical media (268) 0.00 0.00 0.00 0.00 0.01 0.01 0.02 0.02
17. Manufacture of electrical equipment (27) 0.36 0.37 0.37 0.37 0.38 0.38 0.38 0.38
18. Manufacture of machinery and equipment n.e.c. (28) 1.19 1.23 1.26 1.30 1.34 1.37 1.40 1.44
19. Manufacture of transport equipment (29-30) 1.86 1.67 1.51 1.38 1.27 1.17 1.09 1.02
20. Other manufacturing, and repair and installation of machinery and equipment (31-33) 0.36 0.41 0.47 0.51 0.55 0.59 0.63 0.67
21. Electricity, gas, steam and air-conditioning supply (35) 3.04 3.05 3.06 3.07 3.08 3.09 3.11 3.12
22. Water supply, sewerage, waste management and remediation (36-39) 0.74 0.60 0.47 0.37 0.27 0.19 0.12 0.05
23. Construction (41-43) 0.47 0.44 0.41 0.38 0.36 0.34 0.32 0.31
24. Transportation and storage (49-53) 2.62 2.10 1.67 1.32 1.03 0.77 0.56 0.37
25. Publishing, audiovisual and broadcasting activities (except ICT industries) (58-60, exc. 582) 0.36 0.43 0.50 0.56 0.63 0.69 0.76 0.82
26. ICT computer and related activities (5820, 62, 631 and 951) 29.75 31.14 32.21 33.06 33.76 34.30 34.75 35.15
27. Telecommunications (61) 2.99 2.66 2.39 2.16 1.96 1.79 1.64 1.51
28. Information service activities (except ICT industries) (63, exc. 631) 0.17 0.22 0.26 0.29 0.31 0.33 0.35 0.37
29. Legal and accounting; management consultancy; ; technical testing and analysis and architectural
and engineering activities (69-71)
11.56 10.94 10.42 9.99 9.62 9.28 8.99 8.74
30. Scientific research and development (72) 22.68 22.46 22.27 22.12 22.00 21.87 21.77 21.70
31. Advertising and market research; other professional, scientific and technical activities and Veterinary
activities (73-75)
0.02 0.02 0.02 0.02 0.02 0.01 0.01 0.01
32. Administrative and support service activities (77-82) 0.00 0.00 0.00 0.00 0.00 0.14 0.23 0.27
33. Public administration and defence; compulsory social security (84) 6.93 6.53 6.21 5.95 5.75 5.57 5.43 5.31
34. Education (85) 10.01 10.53 10.89 11.15 11.34 11.45 11.52 11.55
35. Human health and social work (86-88) 0.61 0.68 0.76 0.82 0.88 0.94 0.99 1.04
36. Arts, entertainment and recreation (90-93) 0.10 0.10 0.10 0.10 0.09 0.08 0.08 0.07
37. Activities of membership organisations (94) 0.07 0.07 0.07 0.07 0.08 0.08 0.08 0.09
TOTAL 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
Results

34. 39
0.1
0.1
0.2
0.5
0.9
1.0
1.1
1.3
1.3
1.5
1.5
1.5
1.7
1.8
1.8
1.8
2.3
2.5
2.6
3.2
3.8
3.8
4.9
4.9
5.6
5.9
5.9
8.8
9.2
9.4
13.5
14.2
23.7
25.3
32.0
39.5
63.9
0 10 20 30 40 50 60 70
31. Advertising, market research; other prof., scientific and technical activ.
1. Agriculture, forestry and fishing
22. Water supply, sewerage, waste manag. and remediation
35. Human health and social work
36. Arts, entertainment and recreation
9. Rubber and plastics products and other non-metallic mineral prod.
2. Mining and quarrying
24. Transportation and storage
37. Activities of membership organisations
10. Basic metals and fabricated metal products, except mach&eq.
34. Education
3. Food products, beverages and tobacco
23. Construction
6. Coke and refined petroleum products
4. Textiles, apparel, leather
32. Administrative and support service activities
5. Wood and paper products, and printing
7. Chemicals and chemical products
8. Pharmaceuticals, medicinal chemical and botanical prod.
33. Public administration
17. Electrical equipment
18. Mmachinery and equipment n.e.c.
21. Electricity, gas, steam and air-conditioning supply
29. Legal, account., management consultancy, architectural, engineering activ.
20. Other manufacturing, repair and installation of mach&eq.
30. Scientific research and development
19. Transport equipment
12. Electronic components and boards
25. Publishing, audiovisual and broadcasting (except ICT)
15. Consumer electronics
11. Computer, electronic and optical products (except ICT)
16. Magnetic and optical media
28. Information service activities (except ICT)
27. Telecommunications
14. Communication equipment
13. Computers and peripheral equipment
26. ICT computer and related activities
ICT GBARD/Total GBARD by NACE industries. EU28 (2013). Percentage
Results

35. 41
ICT GBARD/Total GBARD. EU28 and Member States (2013). Percentage
9.9
8.6
7.7
7.1 7.0
6.5
6.1
5.1
4.9 4.8 4.7 4.7 4.6
4.3 4.1 4.0 4.0
3.5 3.5 3.4 3.4 3.2
2.8
2.3
1.5 1.4
0.7
0.4 0.3
0
2
4
6
8
10
12
Results

36. • This paper proposes a methodology to estimate the R&D public sector transfers
by NACE industries and which part correspond to ICT assets.
• The methodology is based on GBARD data, which account for the sums committed
by government to fund other industries R&D.
• The methodology closely follows Stančík, J. (2012) and Stančík, J., & Rohman,
I.K. (2014).
• A correspondence between the NACE and NABS classification and the adequate
weights to spilt different GBARD by NABS into NACE industries are used.
• Two key assumptions:
– the distribution of government R&D expenditures by industries is similar to the distribution of
labour costs of the most qualified employees.
– the percentage of ICT R&D assets in each industry is proportional to the share of labour costs
of employees with higher education in ICT occupations over total labour costs with higher
education.
• The methodology is tested for the EU member states for the period 2006-2013. It
offers a disaggregation of 37 2-digits NACE industries (comprising 7 ICT
sectors).
Main issues
43

37. • Results show that R&D transfers are concentrated in a
small number of industries:
– 5 industries concentrate 77% of total GBARD:
• Education; Scientific Research and development; Health; Public Administration
(including defense); and Legal, accounting, technical testing and analysis,
architectural and engineering activities.
• As expected, ICT GBARD intensive industries (in terms
of the % of total GBARD) are the ICT sectors.
Main issues
44

38. This project has received funding from the European Union’s Seventh Framework Programme for
research, technological development and demonstration under grant agreement No. 612774
A Methodology for Disentangling Public
Funded R&D (GBARD) by Industries
Matilde Mas (University of Valencia and Ivie)
Eva Benages (Ivie)
Juan Fernández de Guevara (University of Valencia and Ivie)
Thessaloniki, SEM Conference. 2016