Taiwan Will Reach Eighth in Global R&D Spending by 2028
Operators should track these shifting R&D investments as regional powers ramp up spending in tech and defense sectors.
Updated on Sept. 28, 2026 in Economic Indicators
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Taiwan is projected to reach $111 billion in research and development spending by 2028, effectively overtaking France in global rankings. This shift highlights how localized industrial policies and surging demand for advanced hardware are accelerating innovation budgets internationally.
Why it matters
Rising R&D intensity in these markets signals a pivot toward high-value domestic manufacturing that will alter global supplier landscapes. Businesses in sectors like semiconductors, defense, and memory hardware must anticipate shifts in competitive capacity as these nations prioritize self-sufficiency.
Taiwan's R&D intensity climbed to 4.1% in 2024, up from 3.16% in 2015, while Türkiye expects to surpass Brazil in spending by 2027. Notably, private firms now drive 81.4% of South Korea's R&D and 57.8% of Poland's research funding.
The players
Taiwan
An island economy with a globally dominant semiconductor manufacturing sector.
Türkiye
An emerging industrial power prioritizing domestic defense and aerospace capabilities.
South Korea
A top-tier technology market heavily invested in memory chips and artificial intelligence.
Poland
A European economy experiencing significant growth in private-sector led innovation.
The details
Growth in these regions is largely tethered to targeted industrial sectors, such as Taiwan’s semiconductor manufacturing, which represents half of its total R&D spend. In South Korea, profits from high-bandwidth memory for AI are funding record innovation cycles. Meanwhile, Türkiye’s strategy centers on domestic defense manufacturing, supported by tax credits covering 25.1% of private sector R&D expenses.
Timeline
2009: Poland R&D intensity was 0.66%.
2013-2023: Türkiye R&D spending grew 10.9% annually.
2024: Taiwan R&D intensity reached 4.1%.
2027: Türkiye is projected to pass Brazil in R&D spending.
2028: Taiwan is projected to overtake France in R&D ranking.
Market Landscape
The current global R&D surge follows the pattern of the post-2020 Turkish defense manufacturing pivot, where geopolitical necessity drives heavy investment into domestic industrial capacity. These shifts indicate a broader departure from reliance on foreign imports toward sovereign tech ecosystems.
Operators should re-evaluate their reliance on specific regional suppliers as these nations bolster their own technical self-sufficiency. Monitor R&D intensity metrics in your primary manufacturing hubs to predict future cost advantages or shifts in competitive landscape.
The takeaway
Innovation is increasingly a function of targeted domestic industrial policy rather than broad-based market growth. Track the private-sector funding percentages within your target markets to identify which regions are building the most sustainable long-term competitive moats.
Further reading
For more data on how international capital flows affect competitive positioning, read our latest updates in Economic Indicators.
Source note: This article includes information reported by Research & Development World.
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