(CHEManager Inernational 6-7/2014)´    Capital Spending     In absolute figures, chemical industry investment in the EU had been increasing from 2004 to 2008, registering a positive trend at a consistent pace. Investment during 2009, however, experienced a steep decline compared to 2008, down by 22.5%. Investment remained relatively stable in 2010. The chemicals sector registered a significant increase in 2011, moving up from €16.7 billion in 2010 to €18.5 billion in 2011 and further up in 2012 to reach €19 billion. Chemical industry capital spending in the EU reached the level of €19 billion in 2012. It represents 9.4% of the €203.3 billion spent by the eight largest chemicals-investing countries.

Capital Intensity     In relative terms, the ratio of capital spending to sales, or capital intensity, of the EU chemical industry has been declining since 1999 and reached the value of 3.4% in 2012, down from 5.7% in 1996. Capital spending intensity in China and other emerging economies is far higher than in the rest of the world. Capital intensity for China increased considerably from 11.5% in 2006 to 14.1% in 2012. All major chemicals producing countries increased their chemicals spending intensity from 2006 to 2012 apart from two regions: South Korea and the EU. The EU continues to lag behind leading chemicals-producing regions and has been registering a constant decline during the past ten years.

R&D Spending     In absolute figures, spending on research and development in the chemical industry was valued at an average annual level of €8.3 billion in the EU during the period from 1996 to 2012. In relative terms, the ratio of R&D spending to sales, or R&D intensity, of the European chemical industry has been declining, down from 2.2% registered in 1996 to 1.6% in 2012. In absolute figures, R&D spending in the EU chemical industry was valued at an average annual level of €8.3 billion during the period from 2006 to 2012. In the U.S., the average value of R&D spending per year was €6.6 billion during the same 7-year period and €6 billion for the Japanese chemical industry.

R&D Intensity     Wide variations in research and development (R&D) efforts are observed across the world chemical industry. Turning R&D into innovation is becoming increasingly important for a region's competitiveness. Analysing the ratio of R&D spending to sales of the chemical industry, the R&D intensity level in the EU was far below that of Japan and slightly lower than in the U.S. during the 7-year time period from 2006 to 2012. Japan chemicals R&D intensity was more than double U.S. and EU levels in 2012. The EU R&D intensity was 1.6% on average during the years 2006 to 2012, while the same ratio equalled 4.1% in Japan. China R&D intensity remains still far below U.S. and EU levels.



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