The European Union increased its research and development spending in 2024, while Cyprus remained among the weakest performers, according to new figures released by Eurostat.

The EU’s total R&D expenditure reached €403.1 billion in 2024, rising from €389.2 billion in 2023, an increase of 3.6 per cent that continued a decade of steady expansion. 

In 2014, spending stood at €248.6 billion, meaning the bloc has lifted its investment by 62.2 per cent over ten years as member states sought to strengthen their innovation capacity.

R&D intensity across the EU, defined as expenditure as a share of GDP, held steady at 2.2 per cent in 2024, a level that has shifted only modestly since 2014, when it was lower by 0.1 percentage points. 

Despite this stability, major disparities remain, with a number of member states significantly outperforming others in their commitment to research.

Cyprus maintained one of the lowest R&D intensities in the Union, recording 0.7 per cent in 2024. 

Only Romania and Malta reported lower levels at 0.5 per cent, while Bulgaria registered 0.8 per cent, Latvia reached 0.9 per cent, and Slovakia and Luxembourg each posted one per cent. 

The figures underlined the ongoing struggle for Cyprus to strengthen its research base even as the EU continues to pour resources into innovation.

At the opposite end of the spectrum, six countries achieved or surpassed the European Council’s target of three per cent. 

Sweden led the bloc with an R&D intensity of 3.6 per cent, followed by Belgium at 3.4 per cent, Austria at 3.3 per cent, and Finland at 3.2 per cent. 

Germany and Denmark also met the target, registering 3.1 per cent and 3.0 per cent respectively. 

These results highlighted the widening divide between research leaders in northern Europe and those still developing their innovation systems.

Between 2014 and 2024, nineteen member states increased their R&D intensity, with Belgium showing the most significant rise at one percentage point. 

Greece followed with an improvement of 0.7 percentage points, while Estonia and Croatia each advanced by 0.6 percentage points, reflecting strong momentum among several mid tier member states.

Eurostat also reported that the business enterprise sector remained the driving force behind R&D investment in the EU. 

Companies accounted for 66.5 per cent of total expenditure, equal to €268.1 billion. 

Higher education institutions contributed €86.1 billion or 21.4 per cent, while government bodies allocated €43.5 billion, amounting to 10.8 per cent. 

Private non profit organisations represented the smallest share with €5.4 billion or 1.3 per cent of total spending.

The data painted a clear picture of an EU deepening its investment in science and innovation while facing persistent imbalances across the bloc. 

For Cyprus, the results underscored the urgent need for stronger national policies capable of lifting its R&D performance, as the gap between the island and higher performing member states continued to widen.