These Are The Countries With Highest R&D Spending In 2020

These Are The Countries With Highest R&D Spending In 2020
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Investing in research and development (R&D) is one sure-shot way for companies to succeed. It has often been seen that companies spending big in R&D are among the top companies as well, both in terms of revenue and popularity. Along with companies, the government also plays a significant role in fostering an environment conducive to R&D spending. We have already discussed the companies with the highest R&D, and now let’s check out the countries with the highest R&D spending in 2020.

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Q4 2020 hedge fund letters, conferences and more

Countries with highest R&D spending in 2020

We have used the data from Statista to come up with our list of countries with the highest R&D spending. Following are the countries with the highest R&D spending in 2020:

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  1. Brazil ($39.4 billion)

Over the past decade or so, Brazil has emerged as one of the top countries when it comes to innovation. The steps taken by the government since the 1990s toward fiscal sustainability and to liberalize and open the economy, has boosted the country’s competitiveness along with creating a healthy business environment. Even though the country ranks high when it comes to GDP size, income inequality is also high in Brazil.

  1. United Kingdom ($53.17 billion)

The R&D spending in the UK has risen steadily over the past few decades. In 1981, the country’s R&D spending was £18.5 billion, and it increased to £37.1 billion in 2018. However, the country’s R&D spending has dropped as a percentage of GDP. For instance, the R&D expenditure was 2% of the GDP in 1981, while in 2018, it was 1.7% of the GDP.

  1. Russia ($61.43 billion)

Russia is the fifth-largest economy in Europe with a vast amount of natural resources. The country has a massive arms industry that gets a significant portion of the R&D. As of 2019, the country was the third-largest exporter of arms globally. Russia’s economy fared better than expected during the coronavirus pandemic last year.

  1. France ($69.08 billion)

For France, GERD (gross domestic expenditure on research and development) as a percentage of GDP has grown from 2000 to 2018. France has a highly developed and free-market-oriented economy. It is the third-largest European economy after Germany and the United Kingdom. In 2020, France was the biggest recipient of FDI (Foreign Direct Investment) in Europe.

  1. South Korea ($90.27 billion)

South Korea is among the world’s most innovative nations. The country is second only to Germany in Bloomberg’s 2020 Innovation Index. Moreover, South Korea is at number 11 (among 129 countries) in the 2019 Global Innovation Index, which is published by Cornell University, INSEAD and the World Intellectual Property Organization. South Korea’s ranking in these indexes is a good indicator of its outstanding performance in research and development.

  1. India ($95.79 billion)

India has also been increasing its R&D spending over the past few years. The country was ranked 48th among 131 innovating countries in the Global Innovation Index (GII) 2020, compared to 81st in 2015. Further, the survey noted that the government contributes more in R&D, and thus, there is a need for businesses to contribute more to the sector. In terms of R&D as a percentage of GDP, India ranks lower than the top economies.

  1. Germany ($128.32 billion)

Germany is one of the few European countries that has been able to grow its R&D spending following the 2008 financial crisis. Between 2005 and 2018, the Federal Government’s expenditure on R&D has increased from 9 billion euros to 17.3 billion euros. In the European Union, Germany accounts for about 30% of all R&D expenditures. Also, the country is home to six of the ten most innovative companies in the EU.

  1. Japan ($190.65 billion)

Japan is projected to maintain an R&D investment to GDP ratio of 3.2%. This ratio is higher when compared to other G7 members, such as the U.S., UK and Germany, according to the research firm Oxford Economics. As per the 2018 data, R&D accounts for about 15% of gross fixed capital formation in GDP. In all, 75% of Japan’s R&D investment comes from manufacturing.

  1. China ($532.8 billion)

Chinese R&D has been increasing consistently over the past few years. As per the figures by China’s National Bureau of Statistics, the country’s spending on research and development increased by 10.3% to 2.44 trillion Chinese yuan in 2020. Further, the bureau said R&D spending accounts for 2.4% of China’s gross domestic product. As per the bureau, China will have 350 “national engineering research centers” and 522 “national key laboratories” in operation by the end of 2020.

  1. United States ($596.58 billion)

The U.S. is home to some of the world’s biggest and most popular companies, such as Apple, Google, Microsoft and more. The U.S. has been the undisputed leader in scientific research and development, and U.S. companies rule the list of companies with the highest R&D spending. China, however, is closing the gap quickly. Overall, China and the U.S. account for almost half the world’s global R&D spending.

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