Interactive: Where Companies Spend Their R&D Money

Comparing R&D spending in 2007 and 2015 reveals the new geography of innovation. See also “Innovation’s New World Order.”

by Barry Jaruzelski, Kevin Schwartz, and Volker Staack

October 27, 2015

Corporate R&D has become overwhelmingly global. According to the 2015 Global Innovation 1000 study, 94 percent of the world’s biggest innovators now conduct parts of their R&D programs abroad. But where they spend their R&D money has changed dramatically. Asia is now the top destination for corporate R&D spending, followed by North America and Europe. In 2007, the three regions were ranked in reverse order.

Notes: All spending figures are in U.S. dollars. Totals may not equal sums due to rounding. Totals exclude spending in other regions. Grey circles represent total spending in each region.

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Notes: All spending figures are in U.S. dollars. Totals may not equal sums due to rounding. Totals exclude spending in other regions. Grey circles represent total spending in each region.

North American companies’ R&D Spending in North America

2007			2015
Country	Spending	% of Total	Country	Spending	% of Total
U.S.	$66.2	92.3%	U.S.	$92.8	92.5%
Canada	$4.7	6.5%	Canada	$6.9	6.9%
Rest of NA	$0.8	1.2%	Rest of NA	$0.7	0.7%
Total	$71.7	100%	Total	$100.4	100%

North American companies’ R&D Spending in Europe

2007			2015
Country	Spending	% of Total	Country	Spending	% of Total
U.K.	$8.4	21.0%	U.K.	$10.5	23.4%
Germany	$6.8	16.9%	Germany	$8.3	18.5%
France	$3.3	8.2%	Ireland	$4.1	9.2%
Russia	$3.3	8.1%	Russia	$3.3	7.2%
Ireland	$3.2	7.9%	France	$2.8	6.2%
Italy	$2.2	5.6%	Spain	$2.5	5.6%
Spain	$1.9	4.8%	Italy	$1.9	4.2%
Belgium	$1.9	4.7%	Switzerland	$1.9	4.1%
Switzerland	$1.7	4.4%	The Netherlands	$1.8	4.1%
Sweden	$1.6	3.9%	Belgium	$1.6	3.6%
Rest of Europe	$5.8	14.5%	Rest of Europe	$6.3	14.0%
Total	$40.1	100%	Total	$45.0	100%

North American companies’ R&D Spending in Asia

2007			2015
Country	Spending	% of Total	Country	Spending	% of Total
China	$7.9	31.6%	India	$18.7	35.4%
India	$7.4	29.7%	China	$18.3	34.6%
Japan	$4.4	17.5%	Japan	$6.6	12.5%
South Korea	$1.8	7.2%	South Korea	$3.2	6.1%
Singapore	$1.6	6.5%	Singapore	$3.1	5.9%
Rest of Asia	$1.9	7.5%	Rest of Asia	$2.9	5.5%
Total	$24.9	100%	Total	$52.8	100%

European companies’ R&D Spending in North America

2007			2015
Country	Spending	% of Total	Country	Spending	% of Total
U.S.	$24.3	86.9%	U.S.	$33.1	91.4%
Canada	$3.6	12.8%	Canada	$2.6	7.1%
Rest of NA	$0.1	0.3%	Rest of NA	$0.6	1.6%
Total	$28.0	100%	Total	$36.2	100%

European companies’ R&D Spending in Europe

2007			2015
Country	Spending	% of Total	Country	Spending	% of Total
Germany	$16.9	25.1%	Germany	$20.6	30.0%
France	$15.3	22.7%	France	$11.6	16.9%
U.K.	$9.2	13.7%	Italy	$8.3	12.0%
Sweden	$5.6	8.3%	Switzerland	$6.0	8.8%
Italy	$5.1	7.6%	U.K.	$6.0	8.8%
Switzerland	$3.6	5.4%	SwEden	$3.8	5.6%
Spain	$2.0	2.9%	Spain	$2.1	3.0%
Belgium	$1.6	2.4%	Denmark	$1.8	2.6%
Austria	$1.4	2.1%	Russia	$1.4	2.1%
Finland	$1.3	1.9%	Belgium	$1.2	1.8%
Rest of Europe	$5.3	7.9%	Rest of Europe	$5.9	8.6%
Total	$67.4	100%	Total	$68.8	100%

European companies’ R&D Spending in Asia

2007			2015
Country	Spending	% of Total	Country	Spending	% of Total
China	$10.0	25.1%	China	$13.4	30.0%
India	$4.3	22.7%	Japan	$8.0	16.9%
Japan	$4.3	13.7%	India	$5.3	12.0%
Singapore	$1.2	8.3%	Singapore	$3.3	8.8%
Rest of Asia	$1.7	7.6%	South Korea	$2.0	8.8%
			Rest of Asia	$1.5	5.6%
Total	$21.5	100%	Total	$33.5	100%

Asian companies’ R&D Spending in North America

2007			2015
Country	Spending	% of Total	Country	Spending	% of Total
U.S.	$17.8	96.1%	U.S.	$17.8	96.1%
Canada	$0.7	3.7%	Canada	$0.7	3.7%
Rest of NA	$0.04	0.2%	Rest of NA	$0.04	0.2%
Total	$18.6	100%	Total	$19.7	100%

Asian companies’ R&D Spending in Europe

2007			2015
Country	Spending	% of Total	Country	Spending	% of Total
U.K.	$5.8	43.5%	U.K.	$5.8	32.8%
Germany	$4.1	31.1%	Germany	$2.9	16.5%
France	$1.1	8.5%	France	$1.3	7.3%
Rest of Europe	$2.2	16.9%	Russia	$1.2	6.9%
			Poland	$1.1	6.3%
			Sweden	$1.1	6.2%
			Rest of Europe	$4.2	24.1%
Total	$13.2	100%	Total	$17.6	100%

Asian companies’ R&D Spending in Asia

2007			2015
Country	Spending	% of Total	Country	Spending	% of Total
Japan	$31.7	64.0%	Japan	$35.4	44.6%
China	$6.9	14.0%	China	$22.8	28.8%
South Korea	$4.2	8.5%	South Korea	$8.0	10.1%
Malaysia	$1.5	3.0%	India	$4.2	5.3%
Thailand	$1.5	3.0%	Taiwan	$3.8	4.7%
Rest of Asia	$3.7	7.4%	Rest of Asia	$5.2	6.5%
Total	$49.6	100%	Total	$79.4	100%

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