Reviving innovation in Europe.

In this group, while European automotive players dominate, European companies' R&D spending by software and computer services firms was only about 8 percent of the global total, well below 11 percent for Chinese companies and far behind the 77 percent for US-based companies in 2018 (Exhibit 3). Over the past five years, the global share of European companies' total R&D spending has declined by more than two percentage points, while the share of US companies climbed by more than two percentage points and the share of Chinese companies by six percentage points. The share of European companies among those newly joining the ranks of the 2,500 largest R&D investors decreased to about 12 percent, only about half the share of Chinese firms and one-third the share of US companies. Europe could build on its strong industrial companies and this track record of collaboration to foster cooperation across industry boundaries and even among competing companies in the same industrial sectors. [Extracted from the article]