Chart of the Week
Chart: The Global Leaders in R&D Spending, by Country and Company
Chart: The Global Leaders in R&D Spending
The countries and firms that put the most into R&D
The Chart of the Week is a weekly Visual Capitalist feature on Fridays.
Given a choice of being the disruptor or the disrupted, many would prefer to choose the former.
But it’s not as easy as just flipping a switch and subsequently reaping the benefits of a forward-looking vision, new product categories, and forthcoming patents. Instead, an organization has to proactively acquire this innovation and intellectual capital from somewhere.
For many established companies, there is no other choice but to buy innovative startups through M&A to get their innovation fix, though this typically comes at a marked up price. On the flipside, especially for companies in tech, auto, and pharmaceutical spaces, innovation likely has to be in the DNA of the company culture, managerial decisions, and any new talent hired.
Global Leaders in R&D Spending
For those companies that aim to innovate internally, money needs to go into the research and development (R&D) line of their income statement.
Today’s chart looks at the countries that put the most into R&D (in % of GDP terms, and absolute $ terms), as well as the companies that have spent the most on R&D in the last 12 months trailing.
It’s also worth noting that money put into R&D is like any other investment – the money can be used wisely or simply squandered into initiatives that don’t pay off. Despite this, R&D spending is a loose approximation for global innovation.
R&D by Country
Global R&D spending is heavily concentrated in the G20 countries. In total they account for 92% of all R&D spending, and 94% of all patents granted at the U.S. Patent and Trademark office.
Here is a breakdown of R&D spending by GDP of select G20 countries:
| Country | R&D Spending (% GDP) |
|---|---|
| South Korea | 4.23% |
| Japan | 3.29% |
| Germany | 2.93% |
| United States | 2.79% |
| France | 2.22% |
| Australia | 2.11% |
| China | 2.07% |
| Canada | 1.71% |
| United Kingdom | 1.70% |
| Italy | 1.33% |
| Russia | 1.10% |
| Turkey | 0.88% |
| South Africa | 0.73% |
| Argentina | 0.63% |
| Mexico | 0.53% |
By total dollar spend, however, massive economies like the United States, China, and the EU take their rightful place.
| Rank | Economy | R&D Spending ($) in 2015 |
|---|---|---|
| #1 | United States | $463 billion |
| #2 | China | $377 billion |
| #3 | European Union | $346 billion |
| #4 | Japan | $155 billion |
| #5 | South Korea | $74 billion |
R&D by Company
On a company basis, the top five R&D spenders today are mostly technology companies.
| Rank | Company | R&D Spending (Last 12 months) |
|---|---|---|
| #1 | Amazon | $17.4 billion |
| #2 | Volkswagen | $15.1 billion |
| #3 | Alphabet | $14.5 billion |
| #4 | Intel | $12.8 billion |
| #5 | Samsung | $12.8 billion |
Interestingly, that wasn’t always the case – even as short as 10 years ago, the largest R&D spenders tended to be pharmaceutical companies like Pfizer, or automobile manufacturers like GM and Volkswagen.
A final note: Amazon doesn’t list R&D on its income statement directly, and instead classifies everything under a “Technology and Content” line which includes R&D. While it is likely Amazon is an R&D leader, there isn’t an exact number for it as of now.
COVID-19
The Road to Recovery: Which Economies are Reopening?
We look at mobility rates as well as COVID-19 recovery rates for 41 economies, to see which countries are reopening for business.
The Road to Recovery: Which Economies are Reopening?
COVID-19 has brought the world to a halt—but after months of uncertainty, it seems that the situation is slowly taking a turn for the better.
Today’s chart measures the extent to which 41 major economies are reopening, by plotting two metrics for each country: the mobility rate and the COVID-19 recovery rate:
- Mobility Index
This refers to the change in activity around workplaces, subtracting activity around residences, measured as a percentage deviation from the baseline. - COVID-19 Recovery Rate
The number of recovered cases in a country is measured as the percentage of total cases.
Data for the first measure comes from Google’s COVID-19 Community Mobility Reports, which relies on aggregated, anonymous location history data from individuals. Note that China does not show up in the graphic as the government bans Google services.
COVID-19 recovery rates rely on values from CoronaTracker, using aggregated information from multiple global and governmental databases such as WHO and CDC.
Reopening Economies, One Step at a Time
In general, the higher the mobility rate, the more economic activity this signifies. In most cases, mobility rate also correlates with a higher rate of recovered people in the population.
Here’s how these countries fare based on the above metrics.
| Country | Mobility Rate | Recovery Rate | Total Cases | Total Recovered |
|---|---|---|---|---|
| Argentina | -56% | 31.40% | 14,702 | 4,617 |
| Australia | -41% | 92.03% | 7,150 | 6,580 |
| Austria | -100% | 91.93% | 16,628 | 15,286 |
| Belgium | -105% | 26.92% | 57,849 | 15,572 |
| Brazil | -48% | 44.02% | 438,812 | 193,181 |
| Canada | -67% | 52.91% | 88,512 | 46,831 |
| Chile | -110% | 41.58% | 86,943 | 36,150 |
| Colombia | -73% | 26.28% | 25,366 | 6,665 |
| Czechia | -29% | 70.68% | 9,140 | 6,460 |
| Denmark | -93% | 88.43% | 11,512 | 10,180 |
| Finland | -93% | 81.57% | 6,743 | 5,500 |
| France | -100% | 36.08% | 186,238 | 67,191 |
| Germany | -99% | 89.45% | 182,452 | 163,200 |
| Greece | -32% | 47.28% | 2,906 | 1,374 |
| Hong Kong | -10% | 97.00% | 1,067 | 1,035 |
| Hungary | -49% | 52.31% | 3,816 | 1,996 |
| India | -65% | 42.88% | 165,386 | 70,920 |
| Indonesia | -77% | 25.43% | 24,538 | 6,240 |
| Ireland | -79% | 88.92% | 24,841 | 22,089 |
| Israel | -31% | 87.00% | 16,872 | 14,679 |
| Italy | -52% | 64.99% | 231,732 | 150,604 |
| Japan | -33% | 84.80% | 16,683 | 14,147 |
| Malaysia | -53% | 80.86% | 7,629 | 6,169 |
| Mexico | -69% | 69.70% | 78,023 | 54,383 |
| Netherlands | -97% | 0.01% | 45,950 | 3 |
| New Zealand | -21% | 98.01% | 1,504 | 1,474 |
| Norway | -100% | 91.87% | 8,411 | 7,727 |
| Philippines | -87% | 23.08% | 15,588 | 3,598 |
| Poland | -36% | 46.27% | 22,825 | 10,560 |
| Portugal | -65% | 58.99% | 31,596 | 18,637 |
| Singapore | -105% | 55.02% | 33,249 | 18,294 |
| South Africa | -74% | 52.44% | 27,403 | 14,370 |
| South Korea | -4% | 91.15% | 11,344 | 10,340 |
| Spain | -67% | 69.11% | 284,986 | 196,958 |
| Sweden | -93% | 13.91% | 35,727 | 4,971 |
| Switzerland | -101% | 91.90% | 30,796 | 28,300 |
| Taiwan | 4% | 95.24% | 441 | 420 |
| Thailand | -36% | 96.08% | 3,065 | 2,945 |
| U.S. | -56% | 28.20% | 1,768,346 | 498,720 |
| United Kingdom | -82% | 0.05% | 269,127 | 135 |
| Vietnam | 15% | 85.02% | 327 | 278 |
Mobility data as of May 21, 2020 (Latest available). COVID-19 case data as of May 29, 2020.
In the main scatterplot visualization, we’ve taken things a step further, assigning these countries into four distinct quadrants:
1. High Mobility, High Recovery
High recovery rates are resulting in lifted restrictions for countries in this quadrant, and people are steadily returning to work.
New Zealand has earned praise for its early and effective pandemic response, allowing it to curtail the total number of cases. This has resulted in a 98% recovery rate, the highest of all countries. After almost 50 days of lockdown, the government is recommending a flexible four-day work week to boost the economy back up.
2. High Mobility, Low Recovery
Despite low COVID-19 related recoveries, mobility rates of countries in this quadrant remain higher than average. Some countries have loosened lockdown measures, while others did not have strict measures in place to begin with.
Brazil is an interesting case study to consider here. After deferring lockdown decisions to state and local levels, the country is now averaging the highest number of daily cases out of any country. On May 28th, for example, the country had 24,151 new cases and 1,067 new deaths.
3. Low Mobility, High Recovery
Countries in this quadrant are playing it safe, and holding off on reopening their economies until the population has fully recovered.
Italy, the once-epicenter for the crisis in Europe is understandably wary of cases rising back up to critical levels. As a result, it has opted to keep its activity to a minimum to try and boost the 65% recovery rate, even as it slowly emerges from over 10 weeks of lockdown.
4. Low Mobility, Low Recovery
Last but not least, people in these countries are cautiously remaining indoors as their governments continue to work on crisis response.
With a low 0.05% recovery rate, the United Kingdom has no immediate plans to reopen. A two-week lag time in reporting discharged patients from NHS services may also be contributing to this low number. Although new cases are leveling off, the country has the highest coronavirus-caused death toll across Europe.
The U.S. also sits in this quadrant with over 1.7 million cases and counting. Recently, some states have opted to ease restrictions on social and business activity, which could potentially result in case numbers climbing back up.
Over in Sweden, a controversial herd immunity strategy meant that the country continued business as usual amid the rest of Europe’s heightened regulations. Sweden’s COVID-19 recovery rate sits at only 13.9%, and the country’s -93% mobility rate implies that people have been taking their own precautions.
COVID-19’s Impact on the Future
It’s important to note that a “second wave” of new cases could upend plans to reopen economies. As countries reckon with these competing risks of health and economic activity, there is no clear answer around the right path to take.
COVID-19 is a catalyst for an entirely different future, but interestingly, it’s one that has been in the works for a while.
Without being melodramatic, COVID-19 is like the last nail in the coffin of globalization…The 2008-2009 crisis gave globalization a big hit, as did Brexit, as did the U.S.-China trade war, but COVID is taking it to a new level.
—Carmen Reinhart, incoming Chief Economist for the World Bank
Will there be any chance of returning to “normal” as we know it?
-
Central Banks1 week agoCharted: Public Trust in the Federal Reserve
-
Visual Capitalist3 weeks agoCalling All Data Storytellers to Enter our Creator Program Challenge
-
Technology6 days agoRanked: The World’s Top 25 Websites in 2023
-
Misc3 weeks agoRanked: Top 10 Cities Where International Travelers Spend the Most
-
Technology5 days agoVisualizing the Top U.S. States for AI Jobs
-
VC+3 weeks agoComing Soon: Here’s What’s Coming to VC+ Next
-
Energy2 days agoMapped: Renewable Energy and Battery Installations in the U.S. in 2023
-
Markets2 weeks agoVisualizing the American Workforce as 100 People