A report by the Organization for Economic Co-operation and Development (OECD) shows that many countries plan to maintain or increase their R&D budgets in upcoming years. However, because of public debt, projected to peak in 2015, the increases may be mainly from corporate investment. R&D investment is focused on climate-change mitigation; aging, health and food security; information and communication management; and new manufacturing processes. Governments are prioritizing innovation and providing incentives for private funding of R&D. They are attempting to attract foreign R&D and strengthening capacity for their research and education systems. They are also promoting more technology transfer, openness in science, and increased competition in funding and support for more high-risk programs. The OECD’s share of worldwide R&D expenditures fell from 90% to 70% between 2002 and 2012. Chinese R&D spending doubled from 2008 to 2012, and China is expected to surpass the US as the top R&D spender by 2019. In 2012, Korea became the most R&D-intensive country, at 4.4% of GDP, and Taiwan had the most growth in R&D intensity at 0.91%. EU member states will vary in meeting their goal of 3% of GDP by 2020. Brazil, Russia, India, Indonesia and China are working to increase R&D capacity by shifting to higher value-added activities in global value chains.

Source: OECD