According to the latest estimates published in April 2026 in the OECD Main Science and Technology Indicators, research and development investment across OECD countries in 2024 maintained steady 2.6% growth (inflation-adjusted), even as government R&D budgets tightened and shifted toward defense priorities.

The United States led major economies with 3.4% R&D growth, while the European Union managed just 0.4% expansion. Germany, Europe’s economic powerhouse, saw R&D spending decline by 0.4%, contrasting sharply with robust growth exceeding 5% in Japan, Korea, and Turkey.

Private sector dominance in R&D funding continues to solidify, accounting for 73% of total OECD research expenditure—up from 67% in 2010. This business-led investment pattern reflects a fundamental shift in how innovation is financed globally.

Government R&D organizations showed signs of recovery with over 3% growth, though this hasn’t reversed their long-term decline in relative importance. Higher education R&D grew at a more modest 2% pace.

The convergence of growth rates across sectors marks a significant change from the previous decade, when business R&D dramatically outpaced other sectors. As geopolitical tensions drive defense-focused R&D priorities, companies and universities will likely need to adapt their research strategies to remain competitive in an increasingly fragmented funding landscape.