OECD overall R&D growth stable; government R&D budgets decline and reorient towards defence

Growth in R&D investment remained stable across the OECD in 2024, accompanied by tightening public budgets for R&D and a growing emphasis on defence, according to the latest estimates published in the OECD Main Science and Technology Indicators.

Growth in inflation-adjusted expenditure on Research and Experimental Development (GERD) in the OECD area remained at 2.6% in 2024, unchanged from 2023. R&D expenditure rose in the United States by 3.4%, while growth in the European Union stood at 0.4%. Germany, its largest economy, recorded a 0.4% decline. In contrast, Japan, Korea and Türkiye reported growth rates of over 5%.

The business sector continued to account for the largest share of OECD R&D expenditure with 73% of total GERD, up from 67% in 2010 but unchanged since 2023. Growth rates in R&D spending across different sectors have converged after well over a decade in which R&D in the business sector significantly outpaced other sectors. While R&D expenditure in government organisations has recently grown by over 3%, this has not been sufficient to reverse its long-term decline in relative importance. Growth in higher education R&D stood at close to 2%. 

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