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Every additional 10 million dollars (PPP) spent on research and development result in 2 patent applications per annum in average. The implication is based on the statistics on gross domestic R&D expenditures and number of patent applications to the EPO (European Patent Office) among European countries. Strong positive correlation between these two indicators shows that the more you spend on research and development the more considerable result you get. Thus, Germany, France, UK and Italy are leading countries both by R&D spending and number of patent applications. Moreover, it is significant both current R&D expenditures and expenditures incurred in the past providing evidence that R&D expenditures have lagged effect. Although patent applications statistics cannot be regarded as a perfect proxy of the country's knowledge power (as patent application itself may turn out to be unsuccessful) it, in some measure, is positively related with the wealth of a country.

Sources: UNESCO Institute for Statistics data, 2013Patent applications to the EPO by priority year and NUTS 3 regions, March 2013

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Research and development expenditure

R&D Expenditures

The USA has the highest research and development expenditures in the world. In 2008 it was almost $400 billions or 2.8% of GDP. The gap between the U.S. and other countries is essential. The rest from the top five (Japan, China, Germany and France) only taken together spend as much as the U.S. The model of R&D expenditures differs from country to country. For example, expenditures on basic research account for 17% in total R&D expenditures in the U.S. compared to only 5% in China. Click on the country name in the table to explore the structure of R&D expenditures of certain country.

Private R&D Expenditures on Agriculture Worldwide

Growing world population, global food demand and the lack of extensive factors of production push food and agriculture producers to find a new ways to increase output. According to USDA, private agriculture research and development (R&D) expenditures, increased from $6.9 billions in 2000 to $11 billions in 2010. R&D expenditures for crop seed & biotechnology, crop protection chemicals and farm machinery account for about 85% of total private R&D expenditures in the world. Try Agriculture 101 Quiz to check your knowlege of agriculture industry.

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