Global spending on research and development (R&D) has reached a historic milestone. According to the Global Innovation Index 2025, released by the World Intellectual Property Organization, total R&D expenditure stood at $2.87 trillion in 2024, showing nearly 3% annual growth. The biggest highlight is that China has overtaken the United States to become the world’s largest R&D spender. India has also strengthened its position, securing a place among the top 10 countries by R&D spending.
Global R&D Spending Trend: A Long-Term Shift
- Global R&D spending has nearly tripled since 2000, reflecting the growing importance of innovation-driven growth.
- Asia now accounts for around 45% of total global R&D expenditure, signalling a structural shift away from traditional Western dominance.
- Emerging economies are steadily increasing investments in science, technology, and innovation.
- This global trend highlights how countries are competing through research capabilities rather than just natural resources or manufacturing scale.
China Overtakes the US in R&D Spending
- China emerged as the largest R&D spender in the world in 2024, allocating $785.9 billion to research and development.
- This marks an almost 20-fold increase since 2000, making China the biggest gainer in global R&D share with a rise of over 23 percentage points.
- The rise reflects China’s sustained focus on advanced manufacturing, artificial intelligence, semiconductors, and strategic technologies, positioning it as a global innovation powerhouse.
United States Slips to Second Position
- The United States ranked second with $781.8 billion in R&D spending in 2024.
- While US spending has doubled over the last 24 years, its share of global R&D declined by 9.7 percentage points.
- Despite remaining a global leader in cutting-edge research, the relative slowdown highlights increasing competition from Asia and emerging economies in innovation and technology leadership.
Japan, Europe, and Emerging Economies
- Japan ranked third, though it also witnessed a decline in its global R&D share.
- European economies like Germany, the United Kingdom, and France remain major R&D investors but recorded falling shares in global spending.
- In contrast, emerging economies such as India, Türkiye, Saudi Arabia, and Thailand increased their presence.
- This shows a broader diffusion of innovation capacity across regions rather than concentration in a few developed economies.
India’s Rank in Global R&D Spending
- India ranked seventh globally, with $75.7 billion spent on R&D in 2024.
- Though this is about one-tenth of China’s spending, it represents a more than threefold rise from $20.8 billion in 2000.
- India’s steady growth reflects increased focus on innovation, startups, higher education, and strategic technologies.
- While India still lags behind top spenders, its rising investment trend signals long-term potential in science and technology.
Top 10 Countries by R&D Spending (2024-25)
| Rank | Country | R&D Spending (USD) |
| 1 | China | $785.9 billion |
| 2 | United States | $781.8 billion |
| 3 | Japan | $186.0 billion |
| 4 | Germany | $132.2 billion |
| 5 | Republic of Korea | $126.4 billion |
| 6 | United Kingdom | $86.5 billion |
| 7 | India | $75.7 billion |
| 8 | France | $65.8 billion |
| 9 | Türkiye | $43.2 billion |
| 10 | Brazil | $38.4 billion |
What Is the Global Innovation Index?
- The Global Innovation Index (GII) is an annual ranking published by the World Intellectual Property Organization.
- It evaluates countries based on innovation inputs like R&D spending, education, and institutions, as well as outputs such as patents and high-tech production.
- The index is widely used by governments and researchers to assess national innovation performance and policy effectiveness.
Question
Q. According to the Global Innovation Index 2025, which country became the world’s largest R&D spender in 2024?
A. United States
B. Japan
C. China
D. Germany