Research and Development Expenditure in the European Union – Chances and Challenges

Purpose – Research and development is nowadays a crucial global challenge. The European Union aims at building a competitive economy, however, its European Research and Development Policy, which is a common policy on increasing expenditure on this area, has not been achieved. The main aim of this article is to examine the expenses on R&D in the EU at present. The article also sets out to identify and analyse the question of investment in R&D in the European Union. Methodology: The comparative analysis in the following aspects: 1. Worldwide R&D investment - The EU in relation to China, Japan, US etc. 2. Expenditure on R&D in the EU. a. Public expenses. b. Private expenses (ranking of the EU companies by level of R&D investment). 3. Participation in R&D funding by the business enterprise sector. The author examines some international reports and analyses the EU’s position compared to its main competitors. Findings: 1. Expenses on R&D are lower in the EU than in the US. 2. The European private sector is not sufficiently committed to investing in R&D. 3. The low expenses on R&D influence the low European commitment in creating knowledge and innovation. Originality/Value: The author explains the importance of R&D for the European Union. The author presents the challenges for the growth of European competitiveness.