China became the world’s top spender on research and development, surpassing the United States for the first time, according to an annual report released by Japan’s National Institute of Science and Technology Policy (NISTEP). The analysis, based on the most recently available complete data from 2022, places Japan third in global R&D expenditure.
The report, which tracks science and technology indicators, provides a detailed comparison of R&D investment among major economies. According to the findings, China’s total R&D spending, including from both private and public sectors, reached an estimated ¥85.1 trillion. This figure, calculated using purchasing power parity by the Organisation for Economic Co-operation and Development (OECD), reflects a significant and sustained increase in the country’s investment in science and technology.
The United States ranked second with an estimated R&D expenditure of ¥81.7 trillion for the same period. This marks the first time the U.S. has not held the top position since such comparative data became available.
Japan maintained its third-place ranking, with its total R&D spending increasing by 8.4% year-over-year to ¥22.1 trillion. The report notes this as a substantial rise for the nation’s science and technology budget. Germany and South Korea followed in the fourth and fifth positions, respectively, rounding out the top five global spenders.
NISTEP’s analysis relies on official statistics provided by each country to international bodies like the OECD. The institute converts these figures to a common currency standard and adjusts for purchasing power parity to enable a more direct comparison of the scale of investment across different economies.
The data reflects long-term trends in global R&D funding. Official government policies in China have prioritized increased investment in technology and innovation as part of its national economic strategy. In recent years, the U.S. government has also initiated programs aimed at boosting domestic research and manufacturing, particularly in high-tech sectors.
The report provides statistics on R&D investment as a percentage of gross domestic product (GDP) for each nation. It also details the number of researchers and published academic papers, offering a broader view of the global science and technology landscape. The findings are used by policymakers and analysts to track international trends in innovation and economic competitiveness.
