China's research and development (R&D) investment has ranked first globally, surpassing the United States, according to a new report released from Japan's science and technology authorities on Friday.

The Science and Technology Indicators 2026 report, compiled by Japan's National Institute of Science and Technology Policy (NISTEP), tracks innovation data through roughly 160 measures including research investment, talent and research output.

China's R&D spending reached 97.1 trillion yen (about $615 billion) in 2024, up 13.1% year on year, surpassing the United States' 95.3 trillion yen, which rose 6.7%. Japan ranked third with 22.1 trillion yen, followed by Germany, South Korea, the UK and France.

The report pulls data from national statistics agencies and international organizations. 

The United States' National Science Foundation estimated its 2024 R&D performance at around $993 billion, while China's official statistics put national R&D spending at 3.63 trillion yuan (about $500 billion) in the same year – differences that can arise from varying statistical methods and currency conversion.

There were also different estimates of data from other institutions. The Organisation for Economic Co-operation and Development (OECD) in March this year put China's R&D spending of 2024 at $1.03 trillion, while the US figure at $1.01 trillion, adjusted for purchasing power. Experts told sicence.org in an April story that the OECD report indicated a long-runing trend of China's catch-up, if not a "sudden overtaking moment."

China's R&D growth has been largely business-driven, the Japanese report said. Chinese companies' R&D spending reached 75.4 trillion yen in 2024, up 13% year on year, also exceeding the US figure.

Investment growth has been particularly strong in high-tech manufacturing, including computers, electronics and optical products, reflecting a heightened focus on advanced technologies.

The report also shows a shift in published research globally. China has produced more scientific papers than the US since 2017, and has led in the most cited research since 2018.

The figures point to a wider trend: research funding is increasingly linked to real-world industry and emerging tech. As companies pour more into R&D, the gap between lab and market is narrowing and reshaping how nations build their technological edge.