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European Software R&D Investment Is Increasing Says Truffle

EUROPE: SAP tops rankings again as European software R&D investment continues to rise

On by Steve McCaskill 0

Investment in research and development once again increased in the 2012 edition of the ‘Truffle 100 Europe’ ranking of European software firms.

R&D spending by the top 100 companies rose by 14 percent from 2010 to €5.7 billion, a figure which has contributed to 71 percent growth in investment in the last six years. The number of people employed in R&D roles increased from 55,268 to 59,636.

Research and development spending

Europe cloud - Shutterstock: © BMJ“The Commission recently surveyed some of Europe’s companies that invest the most in R&D, and they told us that they expect their investments in research and development to grow by an average of 4 percent annually over the period 2012 to 2014,” said Máire Geoghegan-Quinn, European Commissioner for Research, Innovation and Science.

“The front runner in this group is the software and computer services sector, which expects R&D investment to grow by a very impressive 11 percent per year on average,” she added. “This is a welcome call to arms in the fight for growth and jobs.

“In the Commission’s new research and innovation programme for 2014-2020, We have proposed a budget of €80 billion, in a framework for R&D and innovation that is more flexible and integrated, with less red tape. The Commission will continue to do its part to help you innovate and prosper.”

SAP once again topped the rankings, fending off competition from Dassault Systems and Sage who finished second and third. Autonomy finished sixth last year, but has vanished from the list this year: having been acquired by HP last year it is no longer a European software company.

Truffle 100 Europe rankings

The big risers were Hexagon, which moved from 33rd to fifth in the Truffle  list, which is compiled by private equity firm Truffle Capital, with the support of Neelie Kroes, European Commissioner for the Digital Agenda, and in collaboration with IDC and CXP Group.

Total revenues rose by 20 percent in 2011 to €32.7 billion, compared with €30.9 billion in 2010 and €27.1 billion in 2009, although 76 percent of this was generated by the top 25 companies. Profits increased from €5.8 billion in 2010 to €6.6 billion last year.

The top five countries accounted for 86 percent of software revenues in the list. Germany alone contributed 48.8 percent, ahead of the UK in second place with 14.8 percent and France in third position with 10.9 percent, ahead of the Netherlands and Sweden. The UK, however, had the most companies in the top 100 with 22.

“The Truffle 100 report shows that the European software sector remains a force to be reckoned with, despite the current economic difficulties,” said Geoghegan-Quinn. “Europe depends now more than ever on its innovative sectors in order to be competitive.”

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Steve McCaskill
Author: Steve McCaskill
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