EU companies increase research and development investments in key sectors

EU companies drove strong research and development (R&D) growth in energy, health, aerospace and defence in 2024, according to the 2025 EU Industrial R&D Investment Scoreboard published today. While the report highlights Europe’s leadership in key industries, it also underscores the intense pressure from global competition, particularly in the information and Communication technologies (ICT).

In 2024, the EU’s leading industrial R&D investors in the electricity and renewable energy sectors increased their R&D investment by 19.8% and capital expenditure by 17.8%. This is a positive step toward achieving the goals of the Clean Industrial Deal. In the health sector, leading firms increased R&D investment by 13 % – a significantly higher growth rate than in other parts of the world. Additionally, European aerospace and defence firms are investing 4.8% more to increase Europe’s defence readiness. These results, published in today’s scoreboard, offer key insights into global research and development dynamics.

Commission action to strengthen Europe’s innovation capacity
To respond to global competition and reinforce Europe’s innovation ecosystem, the Commission is advancing several initiatives aligned with the EU Competitiveness Compass, including:

• The EU Startup and Scaleup Strategy, to make Europe a top destination for launching and growing global tech companies;
• The European Innovation Act and the 28th Regime, expected in 2026;
• The European Strategy on Research and Technology Infrastructures, improving companies’ access to world-class infrastructures and R&D support;
• The European AI in Science Strategy with the Resource for AI Science in Europe (RAISE), equipping scientists with the resources to adopt AI for their research.
• Accelerating these initiatives is essential to help innovative ventures scale up, particularly where Europe must bolster its sovereignty and technological leadership.

Source: European Commission