While Luxembourg ranked seventh in the EU for R&D intensity, 12% of firms dropped or suspended their projects. Seven out of ten companies polled cited lack of qualified staff to take the project further. And half of those that didn’t innovate said that it was because they had other priorities.

Investment in innovation was most common in Luxembourg’s industrial sector. Indeed, one in ten jobs in industry were R&D-related. Larger employers were also most likely to invest in innovation. The most-common innovations cited by firms covered in the report were in relation to the handling of information and communications (53.6% of respondents), accounting and administrative tasks (35.2%) and HR and organizational functions (34.4%).