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Global research and development (R&D) spending has seen exponential growth over the past two decades, nearly tripling in real terms from $1 trillion in 2000 to $2.75 trillion in 2023.

At the heart of this transformation is China—which has rapidly narrowed the innovation gap with the United States, long the global R&D leader.

In this graphic we show the top countries by annual R&D spending between 2000 and 2023. The data comes from the World Intellectual Property Organization.

The Rise of China in Global R&D

In 2000, China accounted for just 4% of global R&D. By 2023, that share surged to 26%, a more than sixfold increase. In fact, this equates to a 1,663% jump in R&D.

For context, the U.S. led all countries in R&D spending in 2023, but China was just $61 billion behind.

• China (2023): $723 billion
• United States (2023): $784 billion

The Global R&D Landscape in 2023

Together, the U.S. and China accounted for over half of the world’s R&D spending in 2023.

Beyond the U.S. and China, a steep drop-off follows in terms of national spending.

Why It Matters

Massive R&D investment powers a country’s long-term productivity, technological leadership, and national security. China’s surge reflects its strategic push into sectors like AI, semiconductors, biotech, and renewable energy—areas where leadership could shape the future of global power dynamics.

Meanwhile, other economies like Japan, Germany, and the EU face mounting pressure to keep pace in an era increasingly defined by innovation-driven competition.

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