20 Most Advanced Countries in Science and Technology
In this article, we will look into the 20 most advanced countries in science and technology. If you want to skip our detailed analysis, you can go directly to the 5 Most Advanced Countries in Science and Technology.
In today's era of digital connectedness and innovation, science and technology act as catalysts for driving global economic progress. Science and technology have permeated every aspect of our lives, playing a pivotal role in redefining the economic front of countries. Over the past few decades, scientific progress and innovation, and increased investments in technology have led to great advancements in improving life.
Global Research and Development Outlook
According to a report by the National Center for Science and Engineering Statistics, the United States was the top spender on R&D in 2019. Global R&D spending increased from $726 billion in 2000 to $2.4 trillion in 2019. The R&D funding in Asia, particularly in Southeast Asia and South Asia surged compared to other regions with high R&D performance. Moreover, some small economies such as South Korea exhibited good R&D performance.
The R&D intensity of the US ranged from 2.5% to 3% for over two decades. According to the 2019 estimates, it surpassed 3% for the first time in history. South Korea and China also experienced significant growth in R&D intensity over the decade. Both countries reported a surge of 4.6% from 2.1% and 2.2% from 0.9%, respectively. Germany also showed substantial growth, reaching 3.2% in 2019.
The United States allocated a large share of R&D funding to basic research, whereas China focused on experimental development. The US spent a total of $607.5 billion on R&D activities in 2018. France also dedicated notable R&D funds to basic research compared to other countries. The business sector served as a major source of research and development funding in the top-performing countries, accounting for over 60% of total R&D funding in 2018. The business sector's contribution to R&D funding surged 75% in Asian economies including Japan, China, and South Korea. The business sector's R&D contributions accounted for over 60% in the United States and Germany.
Global Tech Outlook
According to the 2023 Global Tech report by KPMG, which assesses global technological advancements across the globe based on a survey of 2,100 executives from 16 countries, 63% of respondents reported a boost in performance as a result of their digital transformation efforts. According to the findings, global profitability and performance have increased by over 10% due to increased investments in technology in 2023.
Technologies that positively impacted profitability include AI, AR/VR, data analytics, and cyber security, among others. AI and automation technologies are evolving the future of industries and businesses. In 2023, investments in AI and automation resulted in a 27% increase in financial performance across various sectors including healthcare, financial services, education, retail, tech, manufacturing, and the government sector, among others. Businesses are now actively integrating AI into their operations.
According to a report by McKinsey and Company, generative AI is poised to generate $4.4 trillion in economic value. Despite the continuous developments in AI, businesses need to investigate the underlying potential of AI technologies. For instance, on October 15, Amazon.com, Inc. (NASDAQ:AMZN) announced that it had partnered with the Massachusetts Institute of Technology (MIT) to study the impact of automation and AI integration on work. The research would be focused on how AI and robotics have the potential to improve work efficiency while supporting employees in their daily tasks. Amazon.com, Inc. (NASDAQ:AMZN) has deployed over 750,000 mobile robots and it has helped the company create more than 700 new jobs.
Data and analytics are also becoming rapidly integrated into business operations. For instance, in America, 24% of organizations reported an increase in financial performance from investments in data and analytics. Whereas the Asia Pacific and Europe, Middle East, and Africa (EMEA) regions reported an increase of 35% and 28% respectively.
Major Players in Science and Technology
Some of the top names leading the global market with scientific and technological innovations include Microsoft Corporation (NASDAQ:MSFT), Apple Inc. (NASDAQ:AAPL), and Amazon.com, Inc. (NASDAQ:AMZN). Let's discuss what these companies have been up to.
On October 31, Microsoft Corporation (NASDAQ:MSFT) announced its partnership with Siemens Aktiengesellschaft (OTC:SIEGY) to expand generative AI offerings to industries globally. The companies have launched an AI-powered assistant called Siemens Industrial Copilot to enhance human-machine collaboration and boost productivity. Both companies will be working closely to develop further copilots for the manufacturing, infrastructure, transportation, and healthcare industries. The leading automotive supplier, Schaeffler AG (OTC:SCFLF) has adopted the Siemens Industrial Copilot. Moreover, the Siemens Teamcenter app will be available in 2023 and expedite innovation and development across the product lifecycle
Apple Inc. (NASDAQ:AAPL) is a leader in R&D and technological innovation, which explains the company's strong financial performance. On November 2, Apple Inc. (NASDAQ:AAPL) announced earnings for the fiscal fourth quarter of 2023. The company reported an EPS of $1.46 and outperformed estimates by $0.07. Apple Inc. (NASDAQ:AAPL) reported a revenue of $89.50 billion and beat estimates by $131.13 million.
Here are some of the comments from Apple Inc.'s (NASDAQ:AAPL) Q4 2023 earnings call:
"We’re continuing to innovate at a tremendous pace. And our industry-leading lineup of personal computers just got even better. The new MacBook Pro lineup brings our most advanced technology to our Pro users, while iMac, the world’s best-selling all-in-one, just got faster and more capable. And according to the latest data from Student Monitor, nearly two out of three college students chose a Mac. We couldn’t be more excited about the future. Turning to iPad. Revenue for the September quarter was $6.4 billion. iPad sets the gold standard for tablets and our competitors are unable to match the iPad experience that is enabled by our seamless integration of hardware and software. iPad is also our most versatile product. In classrooms around the world, it’s helping educators bring lessons to life, while giving students a window into the world around them."
Amazon.com, Inc. (AMZN) is leading the market with a commitment to scientific research and technological advancements. On November 16, the company announced its partnership with Hyundai Motor Company (OTC:HYMTF) to sell vehicles on Amazon's U.S. stores starting in 2024. The partnership will help Hyundai Motor Company (OTC:HYMTF) become more data-driven with a cloud-first technology strategy. Hyundai Motor Company (OTC:HYMTF) will utilize Amazon Web Services (AWS) as its cloud provider. Moreover, the next generation of Hyundai Motor Company (OTC:HYMTF) vehicles will have built-in Alexa, which will help the customers control their cars and smart homes.
Now that we have talked about developments in science and technology across the globe and discussed the prominent names working at the forefront of innovation, let's have a look at the 20 most advanced countries in science and technology.
20 Most Advanced Countries in Science and Technology
Methodology
To compile our list of the most advanced countries in science and technology, we utilized metrics including High Technology Exports in US$, Digital Adoption Index (DAI), R&D Expenditure, and High Technology Exports as % of Manufactured Exports. We sourced the data for our metrics from the World Bank.
First, we sorted our list based on High Technology Exports in US$ and collated a list of 60 countries. Then, we employed our other three metrics to further refine the list. To calculate the score, we allocated weights to each metric: 40% to the Digital Adoption Index, 40% to R&D Expenditure, and 20% to High Technology Exports as % of Manufactured Exports. Finally, we calculated our weighted average and listed the countries in ascending order of the calculated score.
Please note that we have ranked the United States 1st on our list because the US is a global powerhouse of innovation and technology. The US is the largest economy in the world, boasting a GDP of $26.95 trillion, as of 2023. It is a global leader in scientific research and development and is home to businesses and institutes that foster innovation and technology.
20 Most Advanced Countries in Science and Technology
20. Lithuania
High Technology Exports in US$ (2021): $3.10 billion
Digital Adoption Index (2016): 0.793
R&D Expenditure as % of GDP (2020): 11.74%
High Technology Exports as % of Manufactured Exports (2016): 1.15%
Insider Monkey Rating: 34.54 out of 100
Lithuania is ranked among the most advanced countries in science and technology with high technology exports of $3.10 billion as of 2021. According to the World Bank, Lithuania reported a DAI of 0.793 in 2016. The R&D expenditure in Lithuania was 11.74% of its GDP in 2020.
19. Belgium
High Technology Exports in US$ (2021): $52.27 billion
Digital Adoption Index (2016): 0.780
R&D expenditure as % of GDP (2020): 12.53%
High Technology Exports as % of Manufactured Exports (2016): 3.45%
Insider Monkey Rating: 35.10 out of 100
Belgium is ranked 19th on our list, reporting high technology exports of $52.27 billion as of 2021. According to the World Bank, Belgium reported a DAI of 0.780 in 2016. Belgium spent 12.53% of its GDP on R&D in 2020.
18. Finland
High Technology Exports in US$ (2021): $5.49 billion
Digital Adoption Index (2016): 0.806
R&D expenditure as % of GDP (2020): 8.44%
High Technology Exports as % of Manufactured Exports (2016): 2.91%
Insider Monkey Rating: 35.13 out of 100
Ranked 18th on our list, Finland reported high technology exports of $5.49 billion as of 2021. According to the World Bank, Finland reported a DAI of 0.806 in 2016. Finland spent 8.44% of its GDP on R&D in 2020.
17. United Kingdom
High Technology Exports in US$ (2021): $66.70 billion
Digital Adoption Index (2016): 0.764
R&D expenditure as % of GDP (2020): 21.83%
High Technology Exports as % of Manufactured Exports (2016): 1.72%
Insider Monkey Rating: 35.61 out of 100
The United Kingdom is ranked 17th on our list, reporting high technology exports of $66.70 billion as of 2021. According to the World Bank, the UK reported a DAI of 0.764 in 2016. The UK spent 21.83% of its GDP on R&D in 2020.
16. Denmark
High Technology Exports in US$ (2021): $12.35 billion
Digital Adoption Index (2016): 0.791
R&D expenditure as % of GDP (2020): 15.67%
High Technology Exports as % of Manufactured Exports (2016): 2.96%
Insider Monkey Rating: 35.96 out of 100
Denmark reported high technology exports of $12.35 billion as of 2021. According to the World Bank, Denmark reported a DAI of 0.791 in 2016. Denmark spent 15.67% of its GDP on R&D in 2020.
15. Estonia
High Technology Exports in US$ (2021): $2.68 billion
Digital Adoption Index (2016): 0.833
R&D expenditure as % of GDP (2020): 10.34%
High Technology Exports as % of Manufactured Exports (2016): 1.75%
Insider Monkey Rating: 36.09 out of 100
Estonia is ranked 15th on our list, reporting high technology exports of $2.68 billion as of 2021. According to the World Bank, Estonia reported a DAI of 0.833 in 2016 and spent 10.34% of its GDP on R&D in 2020.
14. Malaysia
High Technology Exports in US$ (2021): $108.68 billion
Digital Adoption Index (2016): 0.686
R&D expenditure as % of GDP (2020): 42.97%
High Technology Exports as % of Manufactured Exports (2016): 0.95%
Insider Monkey Rating: 36.42 out of 100
Ranked 14th on our list, Malaysia reported high technology exports of $108.68 billion as of 2021. According to the World Bank, Malaysia reported a DAI of 0.686 in 2016 and spent 8.44% of its GDP on R&D in 2020.
13. France
High Technology Exports in US$ (2021): $97.53 billion
Digital Adoption Index (2016): 0.753
R&D expenditure as % of GDP (2020): 26.67%
High Technology Exports as % of Manufactured Exports (2016): 2.34%
Insider Monkey Rating: 36.43 out of 100
France is ranked among the most advanced countries in science and technology with high technology exports of $97.53 billion as of 2021. According to the World Bank, France reported a DAI of 0.753 in 2016. The R&D expenditure in France was 26.67% of its GDP in 2020.
12. Luxembourg
High Technology Exports in US$ (2021): $806 million
Digital Adoption Index (2016): 0.863
R&D expenditure as % of GDP (2020): 7.6%
High Technology Exports as % of Manufactured Exports (2016): 1.12%
Insider Monkey Rating: 36.50 out of 100
Luxembourg reported high technology exports of $806 million in 2021. According to the World Bank, Luxembourg reported a DAI of 0.863 in 2016 and spent 7.6% of its GDP on R&D in 2020.
11. Norway
High Technology Exports in US$ (2021): $4.75 billion
Digital Adoption Index (2016): 0.804
R&D expenditure as % of GDP (2020): 19.28%
High Technology Exports as % of Manufactured Exports (2016): 2.27%
Insider Monkey Rating: 36.93 out of 100
Norway is ranked 19th on our list, reporting high technology exports of $4.75 billion as of 2021. According to the World Bank, Norway reported a DAI of 0.804 in 2016. Norway spent 19.28% of its GDP on R&D in 2020.
10. Israel
High Technology Exports in US$ (2021): $16.08 billion
Digital Adoption Index (2016): 0.787
R&D expenditure as % of GDP (2020): 18.38%
High Technology Exports as % of Manufactured Exports (2016): 5.35%
Insider Monkey Rating: 37.33 out of 100
Ranked 10th on our list, Israel reported high technology exports of $16.08 billion as of 2021. According to the World Bank, Israel reported a DAI of 0.787 in 2016 and spent 18.38% of its GDP on R&D in 2020.
9. Sweden
High Technology Exports in US$ (2021): $18.96 billion
Digital Adoption Index (2016): 0.831
R&D expenditure as % of GDP (2020): 14.28%
High Technology Exports as % of Manufactured Exports (2016): 3.48%
Insider Monkey Rating: 37.52 out of 100
Sweden reported high technology exports of $18.96 billion in 2021. According to the World Bank, Sweden reported a DAI of 0.831 in 2016. Sweden spent 14.28% of its GDP on R&D in 2020.
8. Japan
High Technology Exports in US$ (2021): $116.51 billion
Digital Adoption Index (2016): 0.834
R&D expenditure as % of GDP (2020): 16.22%
High Technology Exports as % of Manufactured Exports (2016): 3.27%
Insider Monkey Rating: 37.94 out of 100
Japan is ranked 8th on our list, reporting high technology exports of $116.51 billion as of 2021. According to the World Bank, Japan reported a DAI of 0.834 in 2016 and spent 16.22% of its GDP on R&D in 2020.
7. Netherlands
High Technology Exports in US$ (2021): $101.16 billion
Digital Adoption Index (2016): 0.838
R&D expenditure as % of GDP (2020): 17.77%
High Technology Exports as % of Manufactured Exports (2016): 2.30%
Insider Monkey Rating: 38.01 out of 100
The Netherlands reported high technology exports of $101.16 billion in 2021. According to the World Bank, the Netherlands reported a DAI of 0.838 in 2016. According to the World Bank, the Netherlands spent 17.77% of its GDP on R&D in 2020.
6. Germany
High Technology Exports in US$ (2021): $209.74 billion
Digital Adoption Index (2016): 0.839
R&D expenditure as % of GDP (2020): 16.90%
High Technology Exports as % of Manufactured Exports (2016): 3.11%
Insider Monkey Rating: 38.21 out of 100
Germany is ranked among the most advanced countries in science and technology with high technology exports of $209.74 billion as of 2021. According to the World Bank, Germany reported a DAI of 0.839 in 2016. The R&D expenditure in Germany was 16.90% of its GDP in 2020.
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Disclosure. None. 20 Most Advanced Countries in Science and Technology is originally published in Insider Monkey.