Survey shows a link between EUREKA and growth in sales and employment

The Israeli Chairmanship of Eureka, the largest pan-European network for market-oriented industrial R&D, has released data that it says demonstrates a positive financial impact on companies participating in Eureka programmes.

Surveys previously conducted on various European R&D programmes, including Eureka, were based largely on interviews with managers and/or technical summary reports of the project, which naturally focused on the tools of R&D and less on financial results, said Israel Shamay, Director of the Israeli Chairmanship of Eureka. “Since the Israeli Chairmanship does not consider industrial R&D an end in it of itself, but rather as a means to advance industry and economic growth through innovation and international cooperation, we decided to measure the financial effect of participation.”

The survey was conducted by Kalman Gayer, and the economic and strategic consulting firm Applied Economics Ltd., to mark the completion of Israel’s Chairmanship year and Eureka’s 25th anniversary.

Gayer's study measured the impact of taking part, based on a sample of 350 companies which participated in Eureka projects between 1996 and 2005. The study compares pairs of companies nearly identical in their parameters: size, country, field of technology, sales revenue, number of employees, with the key difference between them being that one company participated in at least one Eureka project, and the other company did not.

The research examined individual cooperation projects that were performed mostly by two partners from two countries, and that focused on industrial R&D on products close to market. Shaul Freireich, Deputy Chief Scientist of Technology, oversaw the execution of the survey on behalf of the Israeli Chairmanship.

The study focused on changes in sales volume and number of employees at the company, showing on average, companies participating in Eureka recorded sales up by 28 per cent annually during the three years from the completion of the project. Additionally, there was an annual increase in employment in these companies of 20 per cent or more.

Overall, approximately two-thirds of companies that participated in Eureka projects outperformed similar but non-participating companies, in terms of both sales and employment.

The positive impact of Eureka was significant for both small and large companies.

Luuk Borg, Director of the Eureka Secretariat in Brussels, said the survey shows that the total annual increase in sales among companies participating in Eureka projects is approximately Euro 2.8 billion. In addition, 25,000 jobs are created each year - while the annual investment from the 40 governments of Eureka member countries is about Euro140 million.