A comparative analysis of public R&I funding in the EU, US, and China

Jan-Tjibbe Steeman, Océane Peiffer-Smadja () and Julien Ravet ()
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Océane Peiffer-Smadja: European Commission, Directorate-General for Research and Innovation
Julien Ravet: European Commission, Directorate-General for Research and Innovation

EU research and innovation paper series from Directorate General for Research and Innovation (DG RTD) of the European Commission

Abstract: Research and innovation (R&I) are essential for countries’ competitiveness, prosperity, and societal resilience. Therefore, governments around the globe have established extensive R&I programmes to enhance R&I funding. This paper compares public R&I funding across the EU, US, and China - the world's largest R&I spenders – over recent years and identifies five key findings and their policy implications for the EU. First, all three economies have implemented strong R&I policies to boost investments in strategic areas, maintaining global leadership and safeguarding national interests, urging the EU to keep pursuing a strategic and balanced approach in line with 'promoting, protecting and partnering’. Second, China and the US have surpassed the EU in leveraging public R&D investments into private sector funding, suggesting the EU should reflect on its economic structure and focus more on disruptive innovations and advanced technologies. Third, EU public R&D funding is fragmented, indicating a need for better coordination, simplification, and potential consolidation. Fourth, despite relying more on public funding, the EU allocates less in absolute amounts to public R&D compared to the US, and EU’s Framework Programme (EU FP) budgets lag behind those of the US and Chinese counterparts, emphasising the need for EU R&D budget prioritisation. Fifth, R&D funding distribution varies: the EU emphasises research efforts, while the US and China invest more on later R&D stages, prompting policy reflections on aligning means with objectives.

Keywords: Research and Innovation funding; impact assessment; econometric methods; spillover effects; mediation analysis; policy evaluation (search for similar items in EconPapers)
JEL-codes: C18 O32 O38 (search for similar items in EconPapers)
Pages: 33 pages
Date: 2025-04
New Economics Papers: this item is included in nep-cna, nep-eec, nep-ino and nep-sbm
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Persistent link: https://EconPapers.repec.org/RePEc:eug:wpaper:ki-01-25-090-en-n

DOI: 10.2777/3869663

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