Data extracted from European statistics agency Eurostat have shown that Luxembourg allocated €380.93 million for research and development (R&D) in 2020 - about 0.59% of its gross domestic product (GDP).
The R&D expenditure allocated in 2020 was €3.66 million less (down 0.95%) than the year before (total €384.59 million).
Government R&D allocation comprises financing in government agencies as well as in business enterprises, private non-profit establishments and higher education institutions. It also includes government expenses planned abroad.
In terms of total R&D budget allocation across the European Union (EU), the €100 billion marked was breached in 2020 for the first time, with Germany taking the top spot with €37.17 billion allocated to R&D, followed by France (€15.85 billion) and Italy (€11.02 billion) - the only EU member states with over €10 billion spent on R&D in 2020.
In terms of the share of GDP, Luxembourg allocated 0.59% of its GDP, much lower than the EU average of 0.77%. Germany stood at the top with 1.1% of GDP allocated to R&D and the only EU member state above the 1% mark.
However, Luxembourg ranked highest in the EU in terms of R&D allocation per capita at €608 in 2020, more than 2.6 times than that of the EU average (€230 per person). Norway, an European Economic Area (EEA) member state, reported €684 per person in its R&D budget - higher than that of Luxembourg.
Luxembourg also stood fairly high with respect to the increase in total R&D allocations, up 74.7% compared to 2010 levels, second to the 82.1% increase reported in Estonia during the same time period. At 74.5%, Poland was the third country in the EU an increase of over 70% over one decade. In contrast, Portugal (down 23.9%), Spain (down 16.2%) and France (down 3.1%) reported a net decrease in their total R&D allocations in 2020 compared to 2010.
In addition, Luxembourg topped the list for government budget allocations for R&D related to public health, at €120 per inhabitant in 2020 - nearly six times the EU average of €21 per person.
