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Markel Tax

23 Jan 2019

The EU Industrial R&D Investment Scoreboard- 2018

The 2018 edition of the EU Industrial R&D Investment Scoreboard was released in December and it shows that R&D investment was up during the year. The Scoreboard is comprised of the 2,500 companies who invested the most in R&D during 2017/18 - these companies are based in 46 countries around the world investing a total of €736.4bn. 
The top R&D investor for the period is the company SAMSUNG (€13.44bn) from South Korea. The 2nd position was obtained by the US Company ALPHABET (€13.39bn) and 3rd was the German Company VOLKSWAGEN (€13.14bn). 

As expected, the biggest sectors for R&D investment were ICT producers at 23.7%, Health Industries at 21% and Automobiles and transport at 17.6%.
Worldwide ICT services increased their R&D share from 10.8% to 14.2% and ICT producers from 23.0% to 23.7% however EU countries reinforced their specialisation in medium-high tech sectors, considerably increasing their R&D contribution to the global R&D of Automobiles and Aerospace to a lesser extent. These Industries saw a decrease in investment across the rest of the world. 

Although this report focusses on the biggest companies in the R&D field the tax relief it generates applies to companies of all sizes and can be very generous wherever your company is in the supply chain. The companies shown above are clearly market leaders in their respective industries but they rely on all sorts of different components and the work done to design and manufacture these components or processes could qualify for R&D tax relief.  

R&D does not always need to be the creation of a new technology – replicating an existing technology by making something faster, lighter, stronger or even more efficient could constitute an advance in technology.  A company might be approached by an automotive manufacturer to engineer new mechanical parts using a different material or asked to reduce emissions in the manufacturing process – both may qualify for R&D tax relief.   
For further information please contact Markel Tax on 0345 223 2727 and ask for Zoe Barraclough.
Tagged R&D tax relief
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