The business-financed gross domestic expenditure on R&D as a percentage of GDP is forecasted to slightly increase from 2.5% in 2024 to 2.6% by 2028. This demonstrates a modest growth trajectory with an average annual increase of 0.01 percentage points. Since 2023, where the value stood at 2.48%, there has been a steady, albeit slow, upward trend. Over the past two years, we've seen small increments of 0.04% (2024 to 2025) and 0.02% (2025 to 2026), contributing to an anticipated CAGR of approximately 0.004% over the forecast period.
Future trends to watch for include:
- The potential impact of emerging technologies on increasing R&D investments.
- The influence of policy changes in R&D tax credits and incentives.
- Growing industry collaborations between corporations and academia.
- The effect of geopolitical tensions on global R&D expenditure allocations.
