Innovation
To improve its overall sustainability performance, the chemical industry, an innovation-driven sector par excellence, identified the need for disruptive technologies as well as for further improvement of existing technologies. To achieve this, investments in research and innovation (R&I) are essential. Investments can come from European innovation funding programs as well as from the sector itself, stimulating all relevant stakeholders.
R&I is the driving factor to maintain the sector’s competitiveness. In addition, R&I will enable the industry to provide solutions for challenges society is facing across the value chain of the products it manufactures.
R&I spending by the EU chemical industry
Capital spending on R&I in the EU chemical industry increased annually with an average of 1.7% between 2000 to 2020. In 2020, R&I spending reached €9.4 billion, the highest since 1991. However, the added value of the chemical industry increased by 2.2% annually over the same period, which indicates that there is a relative decrease in R&I investment compared to the industry’s added value created.
Key levers for promoting the sector’s innovation are:
- Improving sustainability performance
- Research on breakthrough low carbon and circular technologies, e.g.
- Scaling up renewable hydrogen production with an innovative membrane
- Inspired by nature: replicating photosynthesis to produce chemicals
- Involvement in international & intercompany research projects
- Increased collaboration in innovation ecosystems
- Digital transformation of industrial processes and operations
- Anticipating on emerging market trends and customer demands
Delivering the EU Green Deal
Becoming the world’s first climate-neutral continent by 2050 is a unique opportunity to modernise the EU’s economy and society and re-orient them towards a just and sustainable future.
Research and innovation will play a leading role in:
- Accelerating and navigating the necessary transitions
- Deploying, demonstrating and de-risking solutions
- Engaging citizens in social innovation
In the EU Green Deal, R&I are regarded as the engine for green transformation with the chemical industry emerging as a sector that will play a crucial role in achieving these targets.
R&I spending in the Greek chemical industry
In Greece, the chemical industry is among the manufacturing sectors with the highest business R&D spending. In 2017, R&D spending by the chemical industry reached €24.3 million, which accounts for 8.3% of the overall R&D spending in manufacturing and 2.4% of total business R&D spending in Greece. In terms of R&D spending, the chemical industry holds one of the top positions, just behind the pharmaceutical and food and beverage sectors.
R&D spending by the chemical industry in Greece is rather low compared to more advanced chemical industries in Europe, where relevant spending ranged from €268 million (Spain) to €4.0 billion (Germany) in 2017.
Even if one takes into account the differences in the development of their economies – or specifically of the chemical industry between these countries – Germany continues to occupy the chemical industry’s top position in R&D spending intensity, either spending is adjusted for GDP (0.13%) or for the industry’s added value (8.16%), followed by the Netherlands. R&D spending, adjusted for added value, is 4 times higher in Germany compared to Greece and more than 2 times higher in France and the Netherlands.
The increasingly outward-looking Greek economy in which the sector plays a leading role, the achievement of sustainability objectives in combination with the need for human resources development and modernising education create a dynamic environment for innovative solutions in terms of sustainability.