Portugal’s R&D Spend is on a 6-Year Growth Streak
Following the trend of recent years, Portugal’s total spend on R&D has hit another new high in 2021, rising to €3.6 billion according to final government data. This record high beats their 2020 record of €3.2 billion.
According to a document released by the government, the 2021 total is the highest since records began in 1982 and reflects a now 6-year consecutive rise in spending.
Their analysis shows that growth was driven primarily by the business sector in 2021, with a growth of 16.8% over the previous year. Other sectors and spending categories have also seen growth.
Portugal still spent just 1.68 per cent of its GDP on R&D in 2021, below the EU average of 2.19 per cent. While the bloc has continuously aimed to reach a target of 3%, they have not yet made this mark. However, consistent growth shows a promising trend towards their goal.
The government wants Portugal’s public spending on R&D to hit 1 per cent of GDP by 2030, and private spending to hit 2 per cent, to meet the EU target.
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Research and development is the engine of economic growth in an increasingly knowledge-based global economy, however more investment is needed to help boost human creativity, innovation and economic output.
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To find out more about R&D or to determine the eligibility of your business for receiving an R&D tax credit, contact a Swanson Reed R&D Tax Advisor today.
