Global R&D spending is expected to grow 4.0% in 2010 to $1,156.5 billion, following a 1.0% decline in 2009, according to Battelle and R&D Magazine. China’s R&D spending rose 21.0% to account for 11.1% of worldwide R&D spending in 2009, while R&D expenditures in India increased 5.2% to account for 2.5%. R&D spending in Asia rose 3.7% to make up 33.5% of worldwide R&D expenditures. In contrast, R&D spending in the Americas, the US, Japan, Europe and Rest of World all declined in 2009. Next year, R&D spending in the eight geographic areas is forecasted to increase, led by 18.5% and 14.3% increases in India and China, respectively. Surveys conducted by R&D Magazine between June and October that had an average of 500 responses found that a limited R&D budget was the biggest R&D challenge facing respondents in 2010. Development time and cost-saving requirements were cited by 46% and 44% of respondents as the biggest challenges, respectively. Survey results show the following distribution of R&D spending in 2010: 42% for salaries, 16% for supplies/consumables, 14% for overhead, 13% for capital equipment, 8% for outsourcing and 7% for “other.”

Source: R&D Magazine