Global research and development spending has expanded sharply over the past two decades, with several emerging economies outpacing traditional innovation powerhouses in growth rates. According to data from the World Intellectual Property Organization, global R&D expenditure reached nearly 3 trillion in 2024, up from less than 1 trillion in the year 2000, all in constant 2015 purchasing power parity adjusted U.S. dollars. The analysis ranks countries by the compound annual growth rate of gross R&D expenditure between 2000 and 2024, revealing how the geography of innovation investment is shifting.
China is at the center of this transformation. China tops the ranking, with R&D spending growing at a 13.1% annual rate since 2000. Over this period, China’s gross expenditure on R&D surged from just 40.8 billion in 2000 to nearly 786 billion in 2024, accounting for 27% of the global total. The article notes that since 2000, China has accounted for more than 36% of all patent applications worldwide, and it also leads in Artificial Intelligence patent filings globally, underscoring how sustained funding has translated into innovation outputs. Other fast risers include Saudi Arabia, where R&D spending has grown at 13% annually since 2000, the fastest rate among high income countries, and Egypt, where expenditure has risen at an annual rate of nearly 12% from 2000 to 2024.
The detailed ranking highlights a broader shift toward emerging markets as engines of R&D growth. Economies such as Indonesia, Thailand, Vietnam, the Philippines, and Morocco appear among the top 20, often starting from low baselines but growing quickly in percentage terms. Several smaller countries, including Malta, Namibia, Estonia, Cyprus, Uruguay, and Burkina Faso, also show rapid compound growth even where total spending remains modest. In contrast, the U.S. is described as the world’s second largest R&D spender in absolute terms, but American R&D expenditure has grown at just 3.3% annually from 2000 to 2024, placing it 69th worldwide. The article argues that sustained investment in non defense R&D is correlated with higher long term productivity, stronger manufacturing and technological leadership, and better positioning to develop advanced industries and attract skilled talent as global competition increasingly revolves around innovation rather than low cost labor.
