How much of the government budget is R&D?
President Biden's budget proposal for FY2024 includes approximately $209.7 billion for R&D, $8.9 billion (4.4%) above the FY2023 estimated level of $200.8 billion. Adjusted for inflation to FY2024 dollars, the President's FY2024 R&D proposal represents a constant-dollar increase of 2.4% above the FY2023 actual level.
The 2022 Budget proposes $171.26 billion, a 9 percent increase, in total research and development across the Federal Government.
In 2021, India's gross expenditure on research and development (R&D) as a share of GDP stood at 0.8 percent, this was a significant decrease compared to the previous year. The gross expenditure on R&D was forecast to reach 65.2 billion U.S. dollars, a share of 0.65 percent of the total GDP in 2022.
Businesses performed $609 billion of R&D or 77% of total 2021 U.S. R&D. The U.S. R&D system consists of the activities of a diverse group of R&D performers and sources of funding.
The announcement in the interim Budget for 2024-25, of a corpus of ₹1 lakh crore to bolster the research and innovation ecosystem within the country, has sparked enthusiasm within the scientific and research communities.
The budget makes critical investments to revitalize the defense industrial base, drive innovation, and take care of the Department's personnel. The FY 2025 budget request includes $143.2 billion in research, development, test, and evaluation (RDT&E), and would also fund $167.5 billion for procurement.
Amazon spent the most on research and development in the fiscal year 2022, with over 73 billion U.S. dollars. Meta, Alphabet, Apple, and Huawei rounded out the top five of companies with the highest R&D spending that year.
Consumption expenditure by households is the largest component of GDP, accounting for more than two-thirds of the GDP in any year. It consists of services, such as medical services and haircuts, nondurable goods like food and clothing, and durable goods like cars or furniture.
| 2023: | 22.42128 |
|---|---|
| 2022: | 24.36775 |
| 2021: | 28.91605 |
| 2020: | 30.73505 |
| 2019: | 20.66294 |
After deducting price factors, China's R&D spending in 2022 rose 8 percent year on year, said the NBS. China's total spending on R&D accounted for 2.55 percent of its gross domestic product last year, up 0.12 percentage points from the previous year.
Who invests the most in R&D?
| Rank | Name | R&D Spend in 2022* (Billions) |
|---|---|---|
| 1 | Amazon | $73.2 |
| 2 | Alphabet | $39.5 |
| 3 | Meta | $35.3 |
| 4 | Apple | $27.7 |
Apple's total R&D expenditure for the 2023 fiscal year stands at nearly US$30 billion, a nearly 14% increase from the previous year's US$26.251 billion, and a substantial 36.5% growth compared to 2021.
Contrary to popular belief that Apple has stagnated in innovation, the company has increased its R&D spending to an estimated 7.8% of revenues in 2023, signaling a strong commitment to new technologies.
Most of the R&D funded by the federal government is performed in support of the unique missions of individual funding agencies. The federal R&D budget is an aggregation of the R&D activities of these agencies.
From an industry perspective, technology companies are the most R&D intensive. On average, leading software companies invest between 10–15% of their revenue in R&D. In a report by Crunchbase that analyzed 108 companies provides some in-depth granularity.
The best known framework for R&D spend for companies that have found product-market fit is the 70–20–10 rule, where 70% of spend goes toward investment in the core product, 20% toward new product feature development or smaller products in their nascency, and 10% toward more speculative new products (sometimes called ...
They characterize the source of funding for each researcher's grants, finding that the federal government provided 82 percent of funding and the private sector provided 11 percent (the rest is from other sources).
The United States spent $766 billion on national defense during fiscal year (FY) 2022 according to the Office of Management and Budget, which amounted to 12 percent of federal spending. Defense spending in 2022 was less than the average for the last decade, which was 15 percent of the budget.
Nearly half of mandatory spending in 2022 was for Social Security and other income support programs such as the Child Tax Credit, food and nutrition assistance, and federal employee benefits (figure 3). Most of the remainder paid for the two major government health programs, Medicare and Medicaid.
Research and development (R&D) expenses have grown every year since the start of 2013 and total just over $175 billion through the end of the fiscal first quarter of 2024 (Dec.
Is R&D profitable?
R&D spending by itself doesn't guarantee profitability and strong stock performance. Some companies see a payoff from spending heavily on R&D when projects are deemed to be successful. On the other hand, companies can also suffer from poor performance losses even after investing a great deal of money each year in R&D.
There are two factors. Human cost and capital cost. Human cost is because research is a labor intensive activity, only it is done by highly educated and skilled workers, to whom you cannot pay minimum wages.
CBO: U.S. Federal spending and revenue components for fiscal year 2023. Major expenditure categories are healthcare, Social Security, and defense; income and payroll taxes are the primary revenue sources.
The economic strength of a country is determined by its gross domestic product (GDP). In other words, the amount of all income generated in the country from the sale of goods and services. With a GDP of 25.44 trillion dollars, the USA is by far the world's largest economy in this ranking for 2022.
By the numbers: In the last century, the U.S. federal debt has risen from an inflation-adjusted $403 billion in 1923 to $33.17 trillion in 2023. The U.S. debt-to-GDP ratio surpassed 100% in 2013 and currently stands at 123%, according to the International Monetary Fund (IMF).
