EU industrial R&D investment growth slowed in 2024

The EU's growth rate for industrial R&D investment fell to 2.9% in 2024, the lowest since the Covid-19 pandemic (-2.2% in 2020).

A report published in December 2025 by the Joint Research Centre (JRC) found that global industrial R&D investment reached €1,446 billion in 2024, representing a nominal growth rate of 6.3%. Companies based in the rest of the world (i.e. excluding the EU, the US, Japan and China) recorded the highest annual growth at 8.1%, followed by US firms at 7.8% and Japanese firms at 7.1%. Growth was more moderate among EU-based companies at 2.9% and Chinese firms at 3.9%, according to the JRC.

Bernard Magenhann, Director-General of the JRC, and Marc Lemaître, Director-General of the Commission's department for research and innovation, DG RTD, said: "Europe’s companies still face difficulties when it comes to attracting investment in the areas where they are needed most. For instance, Europe is lacking the ICT companies that are needed to lead our digital transition and protect our digital sovereignty".

The two highlighted a structural challenge in the automotive…