How China Caught Up to the U.S. in Innovation

Key Takeaways 

• Global R&D spending in real terms nearly tripled from approximately $1 trillion in 2000 to over $2.75 trillion in 2023.

• China's share of global R&D rose dramatically from 4% in 2000 to 26% in 2023, closing the gap with the United States.

• The United States led global R&D spending in 2023 with nearly $784 billion.

• China followed closely at $723 billion.

• The gap between the U.S. and China and all other countries is significant:
• Japan: $183 billion
• Germany: $131 billion

• The European Union spent approximately $410 billion on R&D in 2023—just over half the level of the U.S. and China.