Global R&D is forecast to grow 4.14% in 2018 to reach $2.2 trillion in purchasing power parity for 116 countries that have R&D investments of over $20 million. Twenty-four Asian countries lead this group, with a predicted 44% share of total global R&D spending, followed by 12 North American countries, which are forecast to account for 27% of total world R&D spending. The US is estimated to represent 25% of total R&D spending, or 2.84% of its GDP. Thirty-four European countries have a total share of 21%; Germany is at 5%, or 2.84% of its GDP. China’s 2018 global R&D investment share is expected to be 22% in 2018 to represent 1.97% of its GDP. Japan is forecast to account for 9% of world R&D totals, making up 3.50% of its GDP.

The US is expected to invest approximately $553 billion in R&D, including basic research, applied research and development functions, an increase of 2.9%. Generally, US and European R&D expenditures as a share of total global R&D have been steadily decreasing over the past decade, while R&D investments in Asia, specifically China, have been on the rise. China’s significant annual R&D investments have been increasing 7% or more per year, and this trend is forecast to continue for the next five years, at minimum. Another trend is the progressive cuts to R&D by federal governments around the world, which, according to the OECD, has declined 2.4% since 2010. During this same time period, business increased R&D spending 2.5%. These trends are also expected to continue over the next five years. R&D investments in science and technology organizations are growing at approximately 4% per year.

Source: R&D Magazine