Title page 1

Contents 2

KEY TAKEAWAYS 1

INTRODUCTION 2

ALL ADVANCED SECTORS 4

SOFTWARE AND COMPUTER SERVICES 12

TECHNOLOGY HARDWARE AND EQUIPMENT 14

GENERAL INDUSTRIALS 16

INDUSTRIAL ENGINEERING 18

ELECTRONICS AND ELECTRICAL EQUIPMENT 20

AUTOMOBILES AND PARTS 22

AEROSPACE AND DEFENSE 24

PHARMACEUTICALS AND BIOTECHNOLOGY 26

ALTERNATIVE ENERGY 28

RECOMMENDATIONS AND CONCLUSION 30

APPENDIX: CAVEATS ABOUT THE DATASET 30

ENDNOTES 31

Figures 4

Figure 1. Number of U.S. and Chinese firms investing in R&D by industry, 2024 (global total in parentheses) 4

Figure 2. 10-year change in U.S. and Chinese firms' global shares of R&D in advanced industries 5

Figure 3. 10-year change in advanced industry R&D controlling for GDP 5

Figure 4. 10-year change in U.S. and Chinese firms' wage-adjusted shares of global R&D in advanced industries 6

Figure 5. 10-year change in U.S. and Chinese firms' wage-adjusted R&D in advanced industries as a share of GDP 7

Figure 6. 10-year change in U.S. and Chinese firms' global shares of R&D in advanced industries, excluding pharmaceuticals and biotech,... 8

Figure 7. 10-year change in advanced industry R&D controlling for GDP, excluding pharmaceuticals and biotech, and software and services 8

Figure 8. 10-year change in U.S. and Chinese firms' wage-adjusted shares of global R&D in advanced industries, excluding pharmaceuticals and biotech,... 9

Figure 9. 10-year change in U.S. and Chinese firms' wage-adjusted R&D in advanced industries as a share of GDP, excluding pharmaceuticals and biotech,... 10

Figure 10. 10-year change in U.S. and Chinese firms' shares of global R&D and LQ for all advanced sectors 11

Figure 11. 10-year change in U.S. and Chinese firms' shares of global R&D and LQ for all advanced sectors with Chinese firms' R&D adjusted for wage 11

Figure 12. U.S. and Chinese firms' R&D investment in software and computer services, 2024 12

Figure 13. 10-year change in U.S. and Chinese firms' shares of global R&D and LQ for software and computer services 13

Figure 14. U.S. and Chinese firms' R&D investments in technology hardware and equipment, 2024 14

Figure 15. 10-year change in U.S. and Chinese firms' shares of global R&D and LQ for technology hardware and equipment 15

Figure 16. U.S. and Chinese firms' R&D investments in general industrials, 2024 16

Figure 17. 10-year change in U.S. and Chinese firms' shares of global R&D and LQ for general industrials 17

Figure 18. U.S. and Chinese firms' R&D investment in industrial engineering, 2024 18

Figure 19. 10-year change in U.S. and Chinese firms' shares of global R&D and LQ for industrial engineering 19

Figure 20. U.S. and Chinese firms' R&D investment in electronic and electrical equipment, 2024 20

Figure 21. 10-year change in U.S. and Chinese firms' shares of global R&D and LQ for electronic and electrical equipment 21

Figure 22. U.S. and Chinese firms' R&D investments in automobiles and parts, 2024 22

Figure 23. 10-year change in U.S. and Chinese firms' shares of global R&D and LQ for automobiles and parts 23

Figure 24. U.S. and Chinese firms' R&D investment in aerospace and defense, 2024 24

Figure 25. 10-year change in U.S. and Chinese firms' shares of global R&D and LQ for aerospace and defense 25

Figure 26. U.S. and Chinese firms' R&D investments in pharmaceuticals and biotechnology, 2024 26

Figure 27. 10-year change in U.S. and Chinese firms' shares of global R&D and LQ for pharmaceuticals and biotechnology 27

Figure 28. U.S. and Chinese firms' R&D investments in alternative energy, 2024 28

Figure 29. 10-year change in U.S. and Chinese firms' shares of global R&D and LQ for alternative energy 29