While U.S. R&D intensity (R&D as a share of GDP) increased by a paltry 10.4 percent from 1995 to 2008, it increased substantially more in most other nations, including Germany (20.5 percent), Korea (42.2 percent), and China (170.2 percent).

Leading countries increasingly recognize the importance of coordinated R&D strategies in driving growth and spurring the competitiveness of their enterprises. These countries are also investing heavily in R&D. But while U.S. R&D intensity (R&D as a share of GDP) increased by a paltry 10.4 percent from 1995 to 2008, it increased substantially more in most other nations, including Germany (20.5 percent), Korea (42.2 percent), Finland (65 percent), Singapore (135.1 percent), and China (170.2 percent). To restore federal support for research as a share of GDP to 1987 levels, the United States would have to increase federal support for R&D by almost $60 billion-per year.