2010 sees moderate increase in civilian R&D spending

National expenditure on civilian R&D, at current prices, amounted to NIS 35.8 billion in 2010, and comprised 4.4% of the GDP.
 
According to provisional estimates, in 2010, the national expenditure on civilian R&D, at constant prices, increased by 1.2% after a decrease of 3.4% in 2009 and an increase of 3.8% in 2008.
 
The development in constant prices reflects a 1.8% increase in expenditure on R&D in the business sector in 2010, after a decrease of 4.3% in 2009, and an increase of 4.3% in 2008.The number of the R&D employed persons in the software companies increased in 2010 significantly.The expenditure on civilian R&D in the business sector (in current prices) amounted to NIS 28.6 billion in 2010, comprising 80% of total national expenditure on R&D.
 
The remainder was expenditure on R&D carried out at universities (13%), in the government sector (4%), and in other non-profit institutions (3%). The increase in the expenditure on R&D performed in the business sector mainly reflects an increase of 6.4% in software companies, following an increase of 2.5% in 2009 and 7.5% in 2008. In manufacturing industries the expenditure increased by 2.0% in 2010, after a decrease of 3.1% in 2009.
 
On the other hand, in R&D companies, including start-up companies, technological incubators and research institutes, R&D expenditure decreased by 2.3%, following a decrease of 8.8% in 2009.The expenditure on R&D in development centers of multi-national companies amounted to NIS 12.1 billion in 2009, compared to NIS 11.0 billion in 2008. All the R&D performed in these companies, was designated to be used abroad.The Government sector's expenditure on R&D decreased by 4.0% in 2010, after stability in 2009 and a decrease of 0.1% in 2008.
 
In higher education institutions, R&D expenditures decreased by 0.4 % in 2010, following a decrease of 0.1% in 2009. The expenditures in non-profit institutions increased by 1.4% in 2010, following an increase of 4.1% in 2009.