China invested 2.05% of its GDP on research and development, passing its target of 2%, the OECD said. In comparison, EU member states spent 1.94% of GDP, short of its 3% budget.
According to the OECD, China's R&D spending has risen from 0.57% of GDP in 1995. EU R&D spending has only risen from 1.60% of GDP in 1995.
Korea has the world’s largest R&D intensity, at 4.3% of GDP in 2014 for the second year in a row, ahead of Israel at 4.1%, the report said.
The most recent data suggest that spending grew by 2.1% in 2014, a slower pace compared to the previous year which saw growth of 2.8%. This has been mainly driven by a steady increase in R&D performed by business, up 2.8%, the OECD said.
R&D expenditure in government institutions rose 1% after a previous fall but higher education fell by 0.2%. As a percentage of GDP, spending across the OECD remained unchanged at 2.4%, the report said.