The recently passed CHIPS and Science Act of 2022 contains the largest investment in research and development (R&D) in US history and helps American businesses compete with China in technology and innovation.
In the 1960s, the United States accounted for over two-thirds of global R&D spending. However by 2019, this share fell to about 30 per cent, with the US largely maintaining its R&D spending at 2.5 per cent of GDP for the past 20 years.
Meanwhile, several of the US global tech competitors have rapidly increased their spending. Leading the charge is China, who's global share of R&D spending climbed from 4.9 per cent in 2000 to 23.9 per cent by 2019, representing 2.2 per cent of the nation’s GDP. For more information, read USSC Research Associate Victoria Cooper’s explainer here.
Gross domestic spending on R&D as a proportion of total GDP, 2000-2020
Source: https://data.oecd.org/rd/gross-domestic-spending-on-r-d.htm