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Policy Department A: Economic and Scientific Policy ____________________________________________________________________________________________ The reference report of the JRC also provides interesting and detailed information on the composition of this reduction. The chart below, taken from the report, suggests that this drop in public R&D budgets for energy was largely due to a steep decline in nuclear spending. At the same time, stagnation and even a fall in funding for other energy areas should be underlined. It has only been recently that modest (relative to what is at stake here) increases in funding for R&D in non-nuclear research areas were recorded. This is probably the “missing link” identified previously between ambitious targets and insufficient corporate R&D activities. Indeed, insufficient public spending on R&D fails to create an environment that is attractive enough for companies to invest in, which at least partly explains the disappointing R&D intensity of the private sector in those areas. Figure 19: Evolution of EU Member States public R&D research expenditure energy technologies (1985-2007, excluding EU funds) with a detailed breakdown for the year 2007 Source: [JRC-IPTS 2009c] This trend is all the more worrying for the new generation of renewable energy technologies that are being studied in the present report and characterized by a lack of maturity, higher risks (political, regulatory, technological and market risks), longer lead times and high capital investment. It tends to discourage private investments, especially in R&D activities. Overcoming those barriers will require a sustained and high level of public support in order to lower the risk for companies and attract private money. In the next section, the R&D investment trends in each technological segment of interest in this report will be investigated. IP/A/ITRE/ST/2009-11 & 12 50 PE 440.278PDF Image | Policy Department Renewable Technologies
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