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This news article was originally written in Spanish. It has been automatically translated for your convenience. Reasonable efforts have been made to provide an accurate translation, however, no automated translation is perfect nor is it intended to replace a human translator. The original article in Spanish can be viewed at Las empresas prevén aumentar el gasto en innovación casi un 6% en 2009
Despite the crisis, all the surveyed sectors are committed to r & d

Companies expected to increase spending on innovation by almost 6% in 2009

Drafting Interempresas12/03/2009

March 12, 2009

Catalan companies that opt for innovation have decreased from 40 to 34% between 2008 and 2009. Nevertheless, these same companies (especially those of services and the smaller ones) want to continue betting on innovation and for this expected increase their spending in r & d by almost 6 per cent this year. They are data collected in a survey on business technological innovation to 4,000 Catalan companies in the sectors of industry, construction, trade, retail & business services. The study was presented by the cambra de comerç de Barcelona at the end of February.
In 2008, 40% of the Catalan firms made product or processes internally, new or significantly improved by technology innovations. The differences between sectors are notable, according to the survey. The percentage of innovative enterprises in the industry has been higher than the average (54%) - the single most innovative sector-, while in the construction and trade retailer has been much less (20-29%, respectively). The hotel and business services sectors are in line with the media. The results of the survey by size of firm reveal that the percentage of innovative companies is higher among those with 50 or more workers (51%). On the other hand, it is much lower among the smaller (23% if you have less than 10 workers and 35 per cent if they are between 10 and 49 workers). These differences by size of enterprise are detected primarily in industry and construction, and much less in other sectors, where the size seems not decisive when it was decided to innovate.

6.3% Of the turnover of enterprises Catalan innovative was earmarked for spending on innovation in 2008. Again, the industry has exceeded this average, with 7.4 per cent. While the construction and trade have been below the Catalan media, with 5.1 per cent and 4.8 per cent, respectively, and the hotels and services to businesses near the middle.

Forecasts for 2009

The results of the survey indicate that the percentage of innovative enterprises will decrease from 40% in 2008 to 33.6 per cent in 2009. In 2008, the percentage of companies that innovate in 2009 is higher among larger enterprises (50 or more workers). The decrease will be widespread in all sectors, but it is in the industry where will fall more: 53.8 per cent in 2008 to 46.5% in 2009; Although it will continue to be the sector where the percentage of innovative enterprises is higher. The construction will continue to be the sector with the percentage low of innovative enterprises (14% in 2009).

While the number of innovative companies will decrease compared to 2008, the spending of these companies will increase: the percentage of innovative enterprises which says that his dispensary in innovation increase (50%) more than in length to the companies that said that it will decrease (from 13 per cent).

All the sectors surveyed expected an increase in spending on innovation in 2009, despite the crisi. Even and thus the percentage of companies that indicates a decline in investment in innovation is quite higher than the average, something which is reflected in the growth of spending on innovation planned for 2009 in the industry. Indeed, the paying-up of innovative businesses will grow 5.9% in 2009, while in the industry will 3.2%, increase that only exceeds that laid down in the construction (2.4%). Other sectors provides a significant increase of the expenditure in innovation: 16 per cent in trade retailer, and 10% in hotels and in the business services.

The effort of the smaller innovative companies (less than 10 employees) by size of company results. These provide for growth of spending on innovation of 16.4 per cent in 2009, exceeding of the enterprises of 10 to 49 employees (9.3%) and the more than 50 workers (3.2%).

Expenditure on business technological innovation in Catalonia in 2009 (rates of annual growth in per cent)...
Expenditure on business technological innovation in Catalonia in 2009 (rates of annual growth in per cent). Source: Idescat and Cambra de Comerç de Barcelona.

Factors affecting innovation spending decisions for 2009

The factor that has more influence in deciding to reduce the expense in business innovation is the weakness of demand - brought by 67% of companies-, which is consistent with the context of current economic crisis. The construction is the sector most affected by this issue. The second most important factor is the order of priorities between projects: 47% of the companies that will reduce their spending on innovation in 2009 will do so because they give priority to projects that are more profitable in the short term to innovation projects.

However, it should be noted that for the industry the second most important factor is the difficulty of access - for 48% of companies - credit, as the weakness of demand - 51%. In the case of trade and the hotels, the second most important factor is also the difficulties of access to credit, quite similar to the industry as a percentage of companies.

Proposals to promote business innovation

According to the Barcelona Chamber of Commerce, to make optimal conditions for innovation should:

  • Maintain tax deductions on r & d more than 2012. In 2007, the Chamber presented the results of a survey in which the Catalan companies pointed to tax deductions in innovation as one of the three rather valued innovation promotion policies.
  • Making more flexible the conditions for granting of credit to the innovative activities. Solvents and innovative business projects should not stop due to lack of funding. "In the current situation of tightening of the conditions of access to credit the Government should assess the establishment of a credit line Ico for financing of investment in innovation and not just investment to promote the use of ICT"say from the Chamber.
  • Coordinate the tasks of the authorities and/or departments of same in the implementation of innovation policy and administration in the handling of aid. This measure is included in the national plan of scientific research, development and business innovation 2008-2011 of Spain. Also, the Catalan Agency believes that it should make public anything that is being done and to evaluate its effectiveness.

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Cambra Oficial de Comerç, Indústria i Navegació de Barcelona

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