Research and development
 28. Nov 2024
Survey: Comparing Faroese R&D to other countries

For the second consecutive year, Statistics Faroe Islands looks at how much research and development (R&D) is carried out by Faroese businesses and institutions. The survey is recurring and now covers R&D conducted in 2023.

Research and experimental development (G&M) encompasses creative and systematic work undertaken to expand the frontiers of knowledge and develop new applications for existing knowledge.

Um Føroyar framhaldandi skulu vera við í altjóða granskingar-, menningar- og nýskapanarverkætlanum, er krav at hava álítandi almenn hagtøl á økinum. 

Reliable public statistics are crucial for continued Faroese participation in international research, development and innovation projects.

The Faroese version of the survey uses the same OECD approach as in other countries. This ensures internationally comparable statistics that benchmark the Faroes against other nations.

All business enterprises and institutions that are considered to carry out R&D are included in the survey, as required pursuant to Parliamentary Act no. 33 of 7 May 1991.

The survey is carried out in collaboration with the Faroese Research Council.

Objective

The objective of the survey is to examine the extent to which businesses engage in R&D. It looks at where funding comes from, how much labour is used and within which scientific areas the R&D occurs.

R&D expenditure relative to GDP at 1.5% in 2022

The survey covering 2022 revealed that the Faroes spent DKK 376 million on R&D, equivalent to 1.5% of its GDP. In 2003, this figure was 0.9% of GDP – an increase of 0.6 percentage points. It should be noted that the Faroese GDP has increased considerably since 2003.

In 2022, the Faroes ranked last among Nordic countries in this context. Norway had R&D expenditure relative to GDP at 1.6%. Iceland had 2.7%, Denmark 2.9%, Finland 3.0% and Sweden 3.4%.

Útreiðslur til gransking og menning, sum partur av BTÚ

Businesses account for more than half

Business enterprises account for more than two-thirds of expenditures for R&D in the Faroes, representing 1.1% of GDP. The public sector and higher education contribute 0.3% and 0.1% of GDP, respectively.

This marks a significant shift from 2003, when the total R&D expenditure relative to GDP was at 0.9%. Business enterprises accounted for 0.2% of GDP and the public sector and higher education represented 0.7%.

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All tables (Statbank)