Since 2000, global R&D expenditures have increased 170% in current dollars to $1.821 trillion. US R&D expenditure peaked in the latter half of the 21^st century, representing almost 70% of global R&D funding in 1960. However, by 2016, the share of US global R&D expenditures had dropped to represent approximately 28%, not necessarily due to lessened US R&D investments, but because of increased R&D investments in other countries.

In 2016, the US funded the most R&D worldwide, investing $511.1 billion. China followed closely with $451.2 billion in R&D funding, while Japan, Germany and South Korea rounded out the top 5, spending $168.6 billion, $4118.5 billion and $79.4 billion, respectively. The 10 leading countries to invest in R&D, which also included France, the UK, Russia, Taiwan and Italy, respectively, accounted for 85% of the world’s total R&D expenditures in 2016.

Although countries like China, France, Germany, Italy, Japan, the UK and the US contributed the most to R&D funding, their share of global R&D expenditures have fallen. In contrast, China, Russia, South Korea and Taiwan’s shares of global R&D expenditures have increased. In 2000, China, Japan, South Korea and the US represented approximately 5% of global R&D. By 2016, China’s share of global R&D had spiked from 5% to 25%. During the same period, the US’ share of global R&D dropped from 40% to 28%, and Japan’s share declined from 15% to 9%.

Source: Congressional Research Service