A snapshot of global trends, challenges and drivers of success in Research & Development (R&D)

A recent publication by Battelle provides a global overview and forecast of R&D spending as well as related challenges and drivers of success.

What follows is a summary of key messages (text and figures), extracted from the Battelle report (2014 Global R&D Funding Forecast):

The world share of R&D spend doesn’t change significantly within a 3-year observation window (2012-2014) (Fig. 1).
In comparison to the Americas, Asia, and Europe, the Rest-of-World’s (RoW) share in global R&D spend is minute (5.4% in 2012) (Fig. 1).
South Africa trails other nations (n=40 in the report) at position 29 in GERD (Gross Expenditure on R&D) as a percentage of GDP (Gross Domestic Product) and in absolute terms (1.0% in 2012 and 6 bn PPP*-adjusted USD in 2012, respectively) (Fig. 2).
Smaller economies (e.g. Israel, Denmark and Austria) outperform South Africa ito GERD as a percentage of GDP (4.3%, 3.1% and 2.8%, respectively) (Fig. 2).
An average USD 127.000,- is spent per R&D job in the US (Fig. 3).
Every R&D job creates a multiple of 3.2 indirect and induced jobs (Fig. 3).
Every 1 USD spent on R&D creates 2.9 USD in indirect economic impact (Fig. 3).
71% of R&D spend in the US is contributed by industry (Fig. 4).
China will exceed Europe and the US in absolute R&D spending in the early 2020s (Fig. 4).
China is a nation that prioritises spending on development efforts over basic and applied research (Fig. 4).
Most BRIC nations (except India, South Africa not included in the analysis) are increasing their R&D intensity (Fig. 4).
Publications and patents remain key lead indicators of innovation. Patents are more relevant than publications (Fig. 5).
China is gaining rapidly in number of publications and patent applications (Fig. 5).
Fostering R&D requires the creation of a comprehensive eco-system (Fig 6).
It takes four key efforts to build a successful R&D eco-system: (i) large investments in human capital; (ii) partnering science with commercial vision and entrepreneurial efforts; (iii) making capital available to all stages of R&D; (iv) having a supportive and responsive government.