R&D IN THE REST OF THE WORLD
As a group, the “Rest of the World” (ROW) countries—those other
than the U.S., those in Europe and China—are expected to see
moderate growth in their R&D investments in 2014, with leadership
from countries like South Korea, Russia and Taiwan. Most Asian
countries are projected to experience significant economic growth in
2014. When GDP momentum is paired with national commitments
to increase research intensity, robust R&D funding growth typically
results (as is the case in China). However, some countries elect to
deploy resources against other priorities, and in other cases, the lack
of well-developed research infrastructure inhibits the impact of
R&D spending that does take place.
Highlights of R&D funding prospects in ROW countries include:
• Russia’s economy is expected to grow 3%, with R&D
growth exceeding that rate. Russia’s strong infrastructure
for scientific research positions it better than other CIS
affiliates, which should also see positive GDP growth, but
will likely not advance R&D funding to the same degree.
• Most Middle East countries will experience strong GDP
growth in 2014, but they are constrained by weak R&D
infrastructure. The exceptions include Israel and Qatar,
which invest in R&D at globally competitive levels.
• Africa is expected to see strong GDP growth, but is also
limited by under-developed R&D capabilities—the exception is South Africa.
• Strong GDP growth is expected in South America, but this
region also lags in R&D capacity—even Brazil appears to
be under-performing expectations.
The U.S., China, Japan and Europe ( 34 countries) account for
about 78% of the $1.62 trillion which we forecast to be invested in
R&D around the world in 2014. ROW countries (74 of which are
included in this forecast) account for the remaining 22%, or $350
2014 GLOBAL R&D FUNDING FORECAST
billion. Among this group are innovation-driven economies like
South Korea (where $63 billion will be invested in R&D in 2014), to
significant nations with relatively low emphasis on R&D (e.g., India),
to entire continents where R&D funding is traditionally weak and
can be forecast in the aggregate (e.g., Africa).
China, South Korea, Japan and Taiwan, in addition to their regional
proximity, all have strong R&D programs that support development
of science and technology (S&T) in the public and private sectors.
Like China, Korea has established aggressive five-year plans for
S&T. The objectives involve national competitiveness in innovation-intensive industries in which each country also has a strong manufacturing stake. Contribution to scientific discovery is also valued,
with publications being among the measures of success. As the
global R&D funding rankings indicate, each of these countries is
expected to see substantial R&D growth in 2014.
2007 2008 2009 2010 2011 2012 2013 2014
BRIC countries—except India—are increasing research intensity; South Korea is second only to Israel in level of commitment
proportional to GDP.
Research Intensity Trends in BRIC and Other Key Nations