Looking at Historical R&D GDP Spending for The United States and Beyond
May 16, 2023
Welcome to Wealth Enhancement & Preservation’s Market Minute, where we get to update you on everything that happened in the financial markets this week. My name is Darrin Cohen, and I am the CEO of Wealth E&P.
Last week was a mixed week in the market, with the S&P 500 and the DOW down just a little bit. However, the NASDAQ was up with technology stocks driving the way. I want to share some of what I consider to be good news, some of which I've been talking about for a number of years. Eventually, as we get through the uncertainty of these current economic conditions, I believe innovation and research & development are going to drive us out of this.
Above is an OECD Data long-term chart going back to 2000 showing us historically what percentage of GDP is spent on research & development. You can see it tends to be in the mid-2% range. Some of the numbers show around the world expenditures, but the United States is generally above the rest. The United States tends to be in the 2.5%+ range, and in the last few years, you see a spike to over 3% to 3.5%. This is excellent news for the future of our innovation technology and our economy.
What is not so good is China, which is a little bit above us. Korea is a good bit above us, going all the way up to almost 5%. Not surprisingly, Israel is at the top; they have always been on top of innovation. I’d expect all of this to continue.
All in all, I believe innovation is going to eventually drive us into a strong raging bull market for a strong decade! If you have any questions about this topic, your portfolio, the economy, or if you want a risk profile or a retirement projection, please feel free to reach out, visit www.wealthep.com, or give us a call at (678)-739-0175. Otherwise, stay tuned for our Market Minute next week!
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