Private companies increase research and development
Public institutes and private companies in the Faroe Islands spend considerably higher amounts on research and experimental development today than 20 years ago.
New figures produced by Statistics Faroe Islands in collaboration with Research Council Faroe Islands show that research and development for DKK 376 million was carried out in the Faroe Islands in 2022. This corresponds to 1.5 percent of the gross domestic product (GDP).
The figures are 0.6 percentage points higher than in 2003 when the last survey of expenditure on research and development was conducted.
Despite the growth, expenditure on research and development in the Faroe Islands as a share of GDP is lower than in the other Nordic countries. In Denmark the expenditure is 2.9 percent, in Iceland 2.7 percent, in Norway 1.6 percent, and in Sweden 3.4 percent.
In 2000 the Council of Europe recommended that all European countries should spend 3 percent of GDP on research and development in 2010. The Faroe Islands are still far from this goal.
Private companies have highest growth
Private companies account for more than two thirds of the research and development expenditure in the Faroe Islands. Companies conduct research for 1.1 percent of GDP while public institutions conduct research for 0.4 percent.
This is much higher than in 2003 when private companies accounted for 0.2 percent of the research and the public sector for 0.7 percent.
More than half of the research and development in the private sector takes place in the resource industries. Within these industries aquaculture is accounting for almost all the research and development.
Manufacturing and service industries account for 7 percent and 35 percent of the private research and development expenditure.
The Council of Europe has recommended that the private sector should spend 2 percent and the public sector 1 percent of GDP.
Number of researchers has doubled
The number of researchers in the Faroe Islands has more than doubled over the past 20 years. In 2022 research and development covered a total of 276 years´ work. In 2003 the years´ work were 131.
Approximately the same number of women and men are researchers, 153 men and 123 women. However, there are more male technicians and scientific assistants.
Still a long way to go
Annika Sølvará, Director of Research Council Faroe Islands, is pleased that figures on expenditure on research and development in the Faroese islands are now available.
- The situation is better than 20 years ago but there is still a long way to go to reach the 3 percent of GDP which is also recommended by the Council for Research, Culture and Innovation.
- The private sector has made a big leap since 2003. The public sector is drawing out, however, in spite of relatively large investments in the University of Faroe Islands during this period.
- Both public and private sectors should make greater investments in research and development, she says.
- It is not until we have statistics for several years in a row that we will see a clear trend but the figures for 2022 correspond to what the research environment has been claiming for several years: There is a need for more investment - higher funding - in research and development if we want to develop our society on level with EU countries, Annika Sølvará says.
Figures for the Faroe Islands: Statistics Faroe Islands
Figures for other countries: Eurostat