Introduction
Businesses drive innovation that transforms industries and markets. Business enterprise R&D spending reflects the private sector's commitment to developing new products, processes, and technologies — from pharmaceuticals to software, from aerospace to finance.
Using OECD's ANBERD (Analytical Business Enterprise R&D) database, this analysis explores how companies across OECD countries invest in research and development, which industries lead in innovation spending, and how these investments shape competitiveness and long-term economic growth.
Total Business R&D Expenditure
Business enterprise R&D expenditure varies significantly across OECD countries, reflecting differences in economic structure, industrial specialization, and innovation ecosystems. The charts below show how total business R&D expenditure has evolved across major OECD economies, highlighting both long-term trends and recent shifts in private-sector innovation investment patterns.
All values are expressed in US dollars adjusted for purchasing power parity (PPP) at current prices.
Manufacturing
The manufacturing sector remains a cornerstone of business R&D investment, driving innovation in production processes, advanced materials, and industrial technologies. Manufacturing R&D spending supports development of new products, improved manufacturing techniques, and enhanced industrial competitiveness across diverse subsectors from automotive to electronics. Manufacturing still accounts for the largest share of total BERD in most OECD countries.
Services
R&D in services has expanded rapidly, driven by digital transformation and the growing importance of service-oriented business models. Services R&D spending supports development of service delivery technologies, business process innovations, and customer experience solutions that transform how businesses operate and serve customers. Services now represent a growing share of business R&D, reflecting the digitalisation of economies.
Information and Communication
The information and communication technology (ICT) sector represents one of the most dynamic areas of business R&D investment, driving innovation in software, telecommunications, and digital services. ICT R&D spending supports development of new platforms, applications, and communication technologies that shape the digital economy. This sector has consistently shown strong R&D growth, outpacing traditional manufacturing in many advanced economies.
Financial and Insurance Activities
Financial and insurance services have emerged as an increasingly important sector for business R&D investment, particularly in fintech, digital banking, and risk management technologies. Financial services R&D spending supports development of new financial products, payment systems, and analytical tools that transform how financial institutions operate. The sector's R&D intensity has grown significantly as traditional banking adapts to digital competition.
Pharmaceuticals
Computer, Electronic and Optical Products
The computer, electronic and optical products industry represents a cornerstone of high-technology R&D investment, driving innovation in semiconductors, consumer electronics, and optical technologies. Electronics R&D spending supports development of new devices, components, and technologies that power the digital economy. Semiconductor R&D, in particular, has seen exceptional growth as demand for advanced chips continues to accelerate across multiple industries.
Motor Vehicles
The motor vehicles industry represents a major sector for business R&D investment, particularly in automotive technologies, electric vehicles, and autonomous driving systems. Automotive R&D spending drives innovation in vehicle design, powertrain technologies, and mobility solutions. The industry is undergoing a significant transformation, with R&D shifting from traditional combustion engines toward electric powertrains and autonomous driving technologies.
Aerospace
Frequently Asked Questions
BERD (Business Enterprise R&D) measures actual R&D expenditure by businesses, including both intramural (in-house) and extramural (contracted) R&D activities. Unlike GBARD (Government Budget Allocations for R&D), which reflects planned government spending, BERD captures real R&D spending by private companies across all industries. BERD data help track private sector innovation investment, reveal which industries prioritize R&D, and show how business innovation spending compares across countries and over time.
Business R&D investments drive innovation that creates new products, improves processes, and enhances productivity. Companies that invest heavily in R&D tend to develop competitive advantages, capture market share, and achieve higher growth rates. Countries with strong business R&D spending often build stronger innovation ecosystems, attract high-tech industries, and maintain competitive positions in global markets. BERD data reveal which nations and industries are leading in private sector innovation, helping policymakers and analysts understand the drivers of economic competitiveness and technological advancement.
As of the latest available data, business R&D expenditure varies significantly across OECD countries:
- United States: 581,603,837,691 million US dollars (PPP)
- Japan: 143,254,965,535 million US dollars (PPP)
- Germany: 86,581,361,076 million US dollars (PPP)
- France: 41,842,038,066 million US dollars (PPP)
- Korea: 94,976,313,859 million US dollars (PPP)
- United Kingdom: 60,452,257,049 million US dollars (PPP)
These differences reflect varying economic sizes, industrial structures, and innovation ecosystems. Countries with strong manufacturing and high-tech sectors typically show higher business R&D spending.
BERD (Business Enterprise R&D) measures actual R&D spending by businesses, while GBARD (Government Budget Allocations for R&D) measures planned government spending on R&D as reflected in budgets. BERD captures real expenditure by the private sector across all industries, classified by industrial sectors such as manufacturing, services, and ICT. GBARD reflects government intentions and strategic priorities, classified by socio-economic objectives such as health, energy, and defense. Together, BERD and GBARD provide complementary views of a country's R&D landscape: BERD shows what businesses actually invest in innovation, while GBARD shows what governments plan to fund in research and development.
OECD compiles ANBERD (Analytical Business Enterprise R&D) data annually based on national R&D surveys and business enterprise statistics provided by member countries. The database incorporates estimations that extend national submissions to provide more comprehensive coverage across industries and countries. ANBERD data are typically updated within several months of the reference period, once national statistical offices publish their final business R&D statistics. The database covers historical data going back to the 1980s for many countries, allowing for long-term trend analysis and cross-country comparisons of business innovation investment patterns.
Business R&D Spending in Countries
Compare business enterprise R&D expenditure across OECD countries to explore regional trends and national innovation priorities.
Methodology and Data Sources
All charts and indicators update automatically based on OECD's Analytical Business Enterprise R&D (ANBERD) database, which presents annual data on R&D expenditures by industry according to the International Standard Industrial Classification (ISIC) Revision 4. The ANBERD database incorporates estimations that build upon and extend national submissions of business enterprise R&D data by industry, providing comprehensive coverage across OECD member countries. The data are expressed in US dollars adjusted for purchasing power parity (PPP) at current prices, ensuring meaningful cross-country comparisons. ANBERD reflects actual R&D spending by businesses, classified by industrial sectors such as manufacturing, services, information and communication, and financial activities. The data cover annual expenditures from the 1980s to the present, updated in real time as OECD member countries publish their business R&D statistics, typically within several months of the reference period. The OECD updates this database annually as member countries publish their final business enterprise R&D statistics.