The total R&D expenses of Amazon, Google, Meta, Apple, and Microsoft are more than the total of all Japanese companies and research institutions
Major technology companies such as Amazon, Google, Meta, Apple, and Microsoft spend huge amounts of money on research and development, and the total R&D expenditure of the five companies far exceeds Japan's gross research and development expenditure (GERD). .
Ministry of Internal Affairs and Communications | Information and Communications White Paper 2020 | Status of research and development expenses
Research and Development: US Trends and International Comparisons | NSF - National Science Foundation
https://ncses.nsf.gov/pubs/nsb20225/cross-national-comparisons-of-rd-performance
Big Tech's Big R&D bill
https://www.trendlinehq.io/p/research-and-development-spend-of-big-tech
The Reiwa 5th edition of the Information and Communications White Paper reports that the total amount of research and development expenses by Japanese companies, non-profit organizations, public institutions, universities, etc. in fiscal 2021 is 19,740.8 billion yen. The graph below is compiled by the U.S. National Science Foundation of the top 17 countries in terms of total research and development expenditure (GERD) in 2019. Although Japan is far behind the United States in first place and China in second place, it ranks third in the world. It can be seen that the company spends on research and development expenses.
The figure below is a ``diagram summarizing the top 10 companies that spent the most R&D expenses in 2022 among NASDAQ-listed companies'' created by
According to Trendline, Amazon, Alphabet, Meta, Apple, and Microsoft's research and development costs will total $202 billion (approximately 29.5 trillion yen). In other words, just five companies, Amazon, Alphabet, Meta, Apple, and Microsoft, spend 1.5 times more on R&D than Japan as a whole.
In addition, the U.S. National Science Foundation reports that France's GERD in 2019 was $73,286.5 million (approximately 10.7 trillion yen). In other words, Amazon alone spends the same amount of R&D expenses as France, a member of the G7. In addition, Alphabet's R&D expenditure is $39.5 billion (approximately 5.77 trillion yen), which is higher than Italy's GERD of $39.2794 billion (approximately 5.74 trillion yen) and ranks 10th. PepsiCo also spends national-class research and development costs of 800 million dollars (about 117 billion yen), which is comparable to Nigeria's GERD of 829.5 million dollars (about 121 billion yen).
It is startling to see how much of the world's R&D spending comes from (mostly American) tech giants.
— Ethan Mollick (@emollick) January 13, 2024
The R&D spending of Amazon is greater than the R&D spending of all companies and government in France. Alphabet beats Italy.
Pepsi's R&D spending beats all sources in Nigeria. pic.twitter.com/ztzIHkOw7l
Furthermore, the Reiwa 5th edition of the Information and Communications White Paper states that ``Japan's R&D expenditures are on a flat trend, and the gap with the top major countries is widening,'' indicating that The current situation where the gap continues to widen is a concern.
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