Energy, health, aerospace, and defense drive the growth of investments in R&D, against the backdrop of intensifying global competition.
Brussels, December 22, 2025 – Companies in the European Union recorded a solid increase in research and development (R&D) investments in 2024 across several strategic sectors, according to the EU Industrial R&D Investment Scoreboard 2025, published by the European Commission. The most dynamic developments were reported in energy, health, aerospace, and defense, in a global context characterized by increasingly intense technological competition.
In short
EU companies significantly increased their investments in R&D in 2024.
Energy is the sector with the fastest growth in investments (+19.8%).
The health sector recorded a growth of 13%.
Investments in aerospace and defense increased by 4.8%.
Global competition remains intense, especially in the ICT sector.
According to the report, major European companies in the electricity and renewable energy sectors increased their R&D investments by 19.8% in 2024, while capital expenditures rose by 17.8%. This development is considered by the Commission to be an important step towards achieving the objectives set out in the Clean Industrial Deal, which aims to strengthen the EU's green industrial base.
In the health sector, investments in research and development increased by 13%, a significantly faster pace than in other major global economies. At the same time, European companies in the aerospace and defense sectors increased their R&D investments by 4.8%, reflecting the Union's emphasis on strengthening defense capabilities and increasing strategic autonomy.
However, the Scoreboard highlights that global competitive pressure remains high, especially in the information and communications technology (ICT) sector, where investments are growing at a faster pace in the United States and other regions of the world. Globally, the top 2,000 companies invested €1,442.6 billion in R&D in 2024, an increase of 6.3% compared to the previous year. Growth was more pronounced in the US (+7.8%), in the rest of the world (+8.1%), and in Japan (+7.1%), while the EU (+2.9%) and China (+3.9%) recorded more moderate rates.
The report also highlights the concentration of investments in strong innovative ecosystems. The majority of R&D investments by the top 800 companies in the EU are made in countries classified as "strong innovators," such as Austria, Belgium, Estonia, France, Germany, Ireland, and Luxembourg, confirming the essential role of innovation-friendly ecosystems in the development of research-intensive companies.
In terms of sectoral structure, four areas – ICT software, ICT hardware, health, and the automotive industry – account for over 80% of global R&D investments. American companies dominate investments in ICT and health, while European firms remain global leaders in the automotive industry.
Against the backdrop of these developments, the European Commission emphasizes the need to accelerate European initiatives to strengthen innovation capacity, within the EU Competitiveness Compass. These include the EU Strategy for Startups and Scale-ups, the upcoming European Innovation Act, and the "28th" regime, expected for 2026, the European strategy for research and technology infrastructures, as well as the European strategy for the use of artificial intelligence in science (RAISE).
"The 2025 Scoreboard is clear: we must ensure that new technologies are developed, implemented, and scaled across the entire economy. Energy is today the sector with the fastest growth in R&D investments in the EU," said Ekaterina Zaharieva, European Commissioner for Startups, Research, and Innovation.
The EU Industrial R&D Investment Scoreboard has been published annually since 2004 and analyzes the financial data of the largest 2,000 companies in the world and the top 800 companies based in the EU, which together represent over 90% of global R&D investments funded by the private sector. The report is a reference tool for European policies in the fields of research, innovation, and industrial competitiveness.
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