25 Most Developed Nations within the World

On this article, we check out the 25 most developed nations on the earth. You possibly can skip our detailed evaluation of the state of technological improvement in numerous nations and go on to 5 Most Developed Nations within the World

There’s a constructive correlation between GDP per Capita and technological innovation, with high-income developed nations taking the highest rankings in innovation. Nonetheless, a notable exception to that is the Gulf nations, which will be considered an instance of useful resource curse — the concept that nations wealthy in natural-resources usually lag behind in innovation to drive financial progress.

Information and Know-how Intensive Trade

In line with the Nationwide Science Basis, 31% of the world’s financial output is produced by industries that closely incorporate new data and technical developments into their manufacturing. They’re principally concentrated within the developed world, with 15 developed economies alone answerable for 76% of worldwide output in Information and Know-how Intensive (KTI) Industries.

Many developed nations are due to this fact in a pure race to innovate and extract economically viable and sensible purposes from promising excessive applied sciences which are at present within the analysis part, to achieve geopolitical in addition to financial benefits. 

IT Domination

In terms of excessive know-how, it’s more and more dominated by the IT sector and the behemoths that dominate this sector embrace corporations like Microsoft Company (NASDAQ:MSFT), Amazon.com, Inc. (NASDAQ:AMZN), Alphabet Inc. (NASDAQ:GOOG), Meta Platforms, Inc. (NASDAQ:META) and Apple Inc. (NASDAQ:AAPL). 

In line with information from Statista, the knowledge know-how and digitally remodeled enterprises represent 45% of the worldwide GDP in 2022. It’s because of the exponential improve within the variety of transistors that might match onto a chip, bringing down price whereas growing computing energy. Nonetheless, this development is about to succeed in its finish within the close to future, as transistor sizes method atomic scale, a elementary barrier. 

Decline and stagnation in lots of technological areas however, a few of the technological fields are comparatively nonetheless progressing quickly and plenty of nations are spending billions of {dollars} to get forward in these applied sciences. In line with the 2021 International Startup Ecosystem Report,  the 4 quickest rising technological industries embrace Blockchain, Robotics, Synthetic Intelligence and New Meals. 

Picture by Ant Rozetsky on Unsplash

Innovation in AI can be one of many key aggressive battlegrounds between lots of the superior economies just like the US and fast-growing economies like China. So which of them are the technologically most developed nations on the earth? We’re set to search out out. 

Our Methodology

For our checklist of the 25 most developed nations on the earth, we’d be rating them based mostly on our core metric — the share of GDP taken up by R&D relative to GDP measurement. 

Keep in mind although that there’s numerous nuance concerned with the rating. As an illustration, a rustic with a greater performing KTI output could rank over one with the next R&D share of GDP however with a decrease performing KTI output.

We’d be utilizing information from the World Financial institution for R&D spending and GDP, and Nationwide Science Basis for KTI outputs for the highest nations. We’d even be utilizing information from World Mental Property Indicators 2021 for patents.

25. Luxembourg

R&D Spending : 1.1%

Luxembourg is a rustic in western Europe. Its financial measurement in 2021 was $87 billion and R&D spending was 1.1% of the GDP nevertheless it has persistently declined since 2003. It has to do with the truth that Luxembourg’s economic system closely weighs across the monetary sector. Due to this fact, personal R&D spending is barely 0.6% in comparison with the EU’s common of 1.5%. Nonetheless, the small personal spending is offset by public spending by way of increased schooling.

Among the high know-how corporations working in Luxembourg embrace Amazon.com, Inc. (NASDAQ:AMZN) and Microsoft Company (NASDAQ:MSFT).

24: New Zealand

R&D Spending : 1.4%

New Zealand has a GDP of $250 billion as of 2021. Which means the nation’s R&D spending is over $2 billion. In 2021, 330 patent resident-applications had been filed within the nation. 

The primary half of 2021 noticed 78% improve in early-stage investments from the primary half of the earlier yr in New Zealand. Excessive know-how startups took 42% of this funding based on PwC.

The nation is maybe finest identified for Rocket Lab, an aerospace producer that was based in New Zealand.

23. Hong Kong (S.A.R, CHINA)

R&D Spending : 1%

Hong Kong spent 1% of its GDP on Analysis and Improvement in 2020, with a 2020 GDP measurement of $345 billion. In 2021, 3,261 patents had been filed by residents of Hong Kong. 

Main tech corporations have a footprint in Hong Kong. Most outstanding of those embrace Apple Inc. (NASDAQ:AAPL), Amazon.com, Inc. (NASDAQ:AMZN), Microsoft Company (NASDAQ:MSFT), Alphabet Inc (NASDAQ:GOOG) and Meta Platforms, Inc. (NASDAQ:META).

22. Australia

R&D Spending : 0.5%

Australia reserves its spot among the many most developed nations on the earth. Nonetheless, their spending in R&D is the bottom on the checklist. However provided that the dimensions of the economic system is $1.7 trillion, 0.56% continues to be substantial. As well as, their KTI industries for medium-high-R&D make-up 3.8% of their GDP. 

The nation has a high-skill workforce and its know-how sector is value $167 billion as of 2021. There’s numerous high-tech corporations to be present in Australia. It’s dwelling to the outstanding Atlassian Company (NASDAQ:TEAM), which instructions a market cap of $65 billion.

21. Singapore

R&D Spending : 1.9%

Singapore is an island nation in Southeast Asia. It spent 1.9% of its $375 billion GDP in 2019 in Analysis & Improvement. Regardless of its small measurement, Singapore is technologically aggressive, with over 2,000 patent purposes filed by residents in 2021. 

It’s also utilizing applied sciences like driverless taxi techniques, patrolling police bots and good properties at scale. In line with a Reuters report, Singapore has 605 bots for each 10,000 human staff within the manufacturing trade.

20. Norway

R&D Spending : 2.3%

Norway is a Northern European nation within the Scandinavian area. It’s dwelling to many tech corporations, with probably the most outstanding being the telecommunications large Telenor ASA (OSLO:TEL.OL). Norway spent 2.3% of its 2020 GDP of $362 billion on Analysis & Improvement. So far as patents go, near 1,600 patents had been filed by residents within the nation.

19. Finland

R&D Spending : 3%

Finland spent 3% of its GDP on Analysis & Improvement in 2020. Its general GDP within the yr was $272 billion. The nation maintains a technological edge with a extremely expert working inhabitants. It had over 3,600 patent purposes from residents in 2021. 

Aside from having overseas tech giants like Alphabet Inc. (NASDAQ:GOOG) and Apple Inc. (NASDAQ:AAPL),  Finland is dwelling to its personal native corporations like Nokia Oyj (NYSE:NOK).

18. Denmark

R&D Spending : 3%

Denmark spent 3% of its 2020 GDP of $352 billion on pursuing R&D. It had over 3,700 patent purposes from residents, of which roughly 1,414 had been granted. 

Insofar as native tech corporations go, Denmark is finest identified for IO Interactive, the developer of Hitman video-game collection.

17. Austria

R&D Spending : 3.2%

Austria is located in Central Europe. The nation’s 2020 expenditures for R&D had been 3.2% of its GDP whose measurement amounted to $433 billion in the identical yr. It had 4,427 patent purposes from its residents in 2020. 

16. Belgium 

R&D Spending : 3.8%

Belgium is among the many technology-frontier nations, with 3,285 patent purposes from residents in 2021, given a inhabitants of  solely 11.5 million individuals. Its R&D expenditures, which have doubled since 1996, had been 3.8% of its GDP of $522 billion in 2020.

Among the most outstanding Belgian corporations embrace Barco NV (OTCMKTS:BCNAF), an imaging know-how developer, Larian Studios, a online game developer identified for Divinity collection, and Possibility, a wi-fi know-how firm.

15. Israel

R&D Spending : 5.4%

Israel is positioned within the Center East. Its 2020 R&D expenditures amounted to five.4% of its then $407 billion economic system which grew to $481 billion in 2021. 

Given a small inhabitants of solely 9 million, Israel nonetheless managed to have 1,592 patent purposes from residents in 2021. Israel can be identified for some know-how corporations making the headlines. A notable one is NSO Group, identified for the spyware and adware Pegasus.

14. Russia

R&D Spending : 1.1%

Russia has a GDP of $1.7 trillion as of 2021. It’s identified for some main corporations like Yandex. Russian aerospace and navy know-how can be usually leading edge. The nation has already mastered hypersonic know-how whereas the US continues to be struggling to transition from the experiment part. 

Its S-400 Triumf, an air protection system, has additionally been described by Stratfor as the perfect air protection system on the earth. It was developed and manufactured by state owned corporations Almaz Antey and Fakel MKB.

13. Sweden

R&D Spending : 3.5%

Sweden is positioned within the Scandinavian area of Northern Europe. It’s the fourth Scandinavian nation to make it to the checklist of 25 most developed nations on the earth. The nation has a extremely educated workforce and a knowledge-based economic system. In 2021, near 7,000 patent purposes had been filed within the nation. Sweden’s R&D spending accounted for 3.5% of its $541 billion GDP in 2020. 

12. The Netherlands

R&D Spending : 2.3%

Positioned in Northwestern Europe, the Netherlands is among the most developed nations on the earth. The nation’s R&D expenditures for 2020 had been 2.3% of the $913 billion of their then GDP. Almost 70% of The Netherlands’ economic system is pushed by companies, a closely digitized sector, whereas 18% of it’s pushed by manufacturing trade. 

Patents-wise, the nation had over 8,600 patent purposes from residents, virtually half of which had been granted.

11. Switzerland

R&D Spending : 3.1%

Switzerland, formally often called the Swiss Confederation, is often identified for banking and the Alps. Their technological prowess alternatively usually goes unacknowledged in well-liked discourse. Switzerland is dwelling to a few of the largest niche-technology companies like SITA, which develops know-how for airport operations, and Logitech, a computer-peripherals and software program developer. The nation’s 2019 GDP of $752 billion associated to three.1% in R&D expenditures.

10. Taiwan

R&D Spending : 3.6%

Taiwan is positioned in Southeast Asia. Taiwan’s 2021 R&D expenditures accounted for 3.6% of its $775 billion GDP for a similar yr.  

It’s best identified for Taiwan Semiconductor Manufacturing Firm Restricted (TSMC), the world’s largest semiconductors foundry, accounting for a 53% world market share. It’s at present pushing in direction of the three nm fabrication course of and is anticipated to mass-produce 2 nm chips by 2025, taking Moore’s Legislation to its limits.

9. Italy

R&D Spending : 1.5%

Italy had an R&D spending of 1.5% of its 2020 GDP of $1.9 trillion. The nation has an energetic tech scene, with main tech corporations like Apple Inc. (NASDAQ:AMZN), Meta Platforms, Inc. (NASDAQ:META), Amazon.com, Inc. (NASDAQ:AMZN) and Microsoft Company (NASDAQ:MSFT) working there. In 2021, over 15,000 patent purposes had been filed in Italy by residents.

8. Canada

R&D Spending : 1.7%

Canada is among the most technologically developed nations on the earth. It spent 1.7% of its $1.6 trillion economic system in 2020 on KTI industries. Residents filed 4710 patent purposes within the nation in 2021. Canada had a KTI industries’ output of 6.8% between 2019 and 2020 based on the Canadian ICT Sector Profile 2020. 

Data know-how is the key high-tech trade in Canada, with Shopify Inc. (NYSE:SHOP) being the largest Canadian know-how firm.

7. The UK

R&D Spending : 1.7%

The UK spent 1.7% of its 2019 $2.8 trillion GDP on R&D. It elevated by $2.5 billion in 2020 to $73 billion in whole expenditures. The biggest proportion of this expenditure was the enterprise sector, at 71%, adopted by the upper schooling sector at 22% based on the UK’s Workplace for Nationwide Statistics. 

The UK accounted for 3% of worldwide KTI manufacturing in 2019, which was the sixth highest on the earth. Shifting on, 17,000 patent purposes had been filed within the nation by residents in 2021. Its outstanding know-how corporations embrace Endava plc (NYSE:DAVA), The Sage Group plc (OTCMKTS:SGPYY) and AVEVA Group plc (OTCMKTS:AVEVF) amongst others.

6. France

R&D Spending : 2.3%

France is dwelling to some main tech corporations on the earth. These embrace corporations like Atari SA (PONGF), a online game holding firm and Dassault Systèmes (OTCMKTS:DASTY), a software program developer for 3d printing. 

France spent 2.3% of its 2020 GDP of $2.63 trillion on Analysis & Improvement. In 2021, the variety of patent purposes that had been filed by residents amounted to over a whopping 24,000.

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Disclosure: none. 25 Most Developed Nations within the World is initially printed on Insider Monkey.

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