The figure of the week. Of the $3.8 trillion invested globally in R & D in 2024, OECD countries accounted for two-thirds. According to the latest estimates from the OECD, global expenditures on research and development (R & D) reached $3.8 trillion in 2024. The most economically developed countries accounted for nearly two-thirds of the amount ($2.3 trillion), with $1.009 trillion for the United States and $611 billion for the European Union, while they amounted to $1.028 trillion in China.
The “R & D intensity”, a key indicator that measures R & D expenditure as a percentage of GDP, remained at 2.7% worldwide in 2024, unchanged since 2020. Israel had the highest R & D intensity at 6.8%, followed by South Korea (5.1%), Taiwan (4.1%), Japan and Sweden (3.6%), and the United States (3.5%).
On average, R & D intensity in the European Union was 2.1%, with rates of 3.1% in Germany, 2.2% in France, 1.5% in Spain, and 1.4% in Italy.
Growing contribution from businesses. The growth of domestic expenditures on experimental research and development (Dird) averaged 2.6% in OECD countries in 2024. They increased by over 5% in Japan and South Korea, 3.4% in the United States, but only progressed by 0.4% in the European Union, even decreasing by 0.4% in Germany.
Businesses were the main contributors to R & D expenses in the OECD area, accounting for 73% of Dird, compared to 67% in 2010. Meanwhile, public budget credits allocated to R & D (CBPRD) decreased by 4.1% in the area, with a significant drop (8%) seen in the energy and environment sector. However, they increased by 1.2% in the defense sector, showing substantial increases of 17.9% in Japan and 11.5% in the European Union.
