How the world invests in R&D

The changing face of public and private funding.

The latest analysis from the US National Science Board (see Map) confirms that Israel leads the world in its economic devotion to research and development (R&D). Its civilian R&D spending in 2005 accounted for 4.71% of gross domestic product (GDP), more than twice the average among members of the Organisation for Economic Co-operation and Development (OECD).

Although US R&D investment was the world's largest ? $340 billion ? and in 2004, it was more than that of the rest of the G7 nations combined, the report offers some evidence of a slight decline in its standing. Its 2.57% share of GDP is comfortably above the OECD average of 2.25%, but both South Korea and Switzerland have leap-frogged ahead of the United States by this measure since the board's previous report in 2006. Germany could now be poised to do the same.

Most countries are investing more in R&D than they were, says Arden Bement, director of the National Science Foundation, which published the report. For example, although China ranks 23rd in GDP share ? just 1.34% ? it has pulled ahead to third in total R&D investment with an estimated $115 billion in 2005.

Box 1: R&D investments

The latest analysis from the US National Science Board confirms that Israel leads the world in its economic devotion to research and development (R&D). Its civilian R&D spending in 2005 accounted for 4.71% of gross domestic product (GDP), more than twice the average among members of the Organisation for Economic Co-operation and Development (OECD).

Although US R&D investment was the world's largest ? $340 billion ? and in 2004, it was more than that of the rest of the G7 nations combined, the report offers some evidence of a slight decline in its standing. Its 2.57% share of GDP is comfortably above the OECD average of 2.25%, but both South Korea and Switzerland have leap-frogged ahead of the United States by this measure since the board's previous report in 2006. Germany could now be poised to do the same.

Most countries are investing more in R&D than they were, says Arden Bement, director of the National Science Foundation, which published the report. For example, although China ranks 23rd in GDP share ? just 1.34% ? it has pulled ahead to third in total R&D investment with an estimated $115 billion in 2005.