Construct Prosperity & Competitiveness

Economic competitiveness is an integrated part of sustainability. Economic competitiveness is needed to create a healthy business environment with room for continuous innovation, supporting sustainable transition and creating prosperity for society.

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Contribution to the EU Green Deal

The European Green Deal is the EU’s new growth strategy, aiming to transform the EU into a fairer and more prosperous society, with a modern, resource-efficient, and competitive economy.

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

R&I spending in the EU chemical industry

To improve the sustainability performance of the chemical industry it is important to identify disruptive technologies and further improve existing ones. To achieve this, investments in research and innovation (R&I) are essential.  R&I is one of the driving factors to maintain competitiveness of the sector. This is in line with SDG 9 and 12: ensuring sustainable production patterns by R&I. Also in the EU Green Deal, R&I is regarded as the engine of green transformation.

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. Additional investments are crucial to drive innovation and can come from European innovation funding programmes.

Key levers for industry activity & company example

1. Improving sustainability performance

2. Research on – breakthrough low carbon and circular technologies

• Scaling up renewable hydrogen production with an innovative membrane
• Inspired by nature: replicating photosynthesis to produce chemicals

3. Involvement in international & intercompany research projects

4. Increased collaboration in innovation ecosystems

5. Digital transformation of industrial processes and operations

6. Anticipating on emerging market trends and customer demands

Associated SDG targets

Value added as a proportion of GDP

The chemical sector is growing in absolute numbers, but not relatively to the EU GDP. The absolute added value of the chemical sector increased continuously and by 35% in the last 10 years, while the share of added value of the chemical sector to the European economy’s GDP has decreased from 1995 to 2008 and remains relatively stagnant after that. More economical data of the European chemical industry can be found in the Cefic Facts & Figures.

Associated SDG targets