2025

Edition

TrendCompendium2050

Megatrend5

Technology&Innovation

TheRolandBergerTrendCompendium2050focusesonstable,long-term

developments…

2050

?TheRolandBergerTrendCompendium2050isaglobaltrendstudycompiledbyRolandBergerInstitute(RBI),thethinktankofRolandBerger.OurTrend

Compendium2050describesthemostimportantmegatrendsshapingtheworldbetweennowand2050

?Ourtrendviewsarebasedonmostrecentstudies,dataandanalyses.

Wecriticallyexaminetheresultsforrelevance,plausibilityandreliability

?Wedeliberatelyusepubliclyavailablesourcestomakeouranalysesverifiable

?Toincorporatetoday'suncertaintiesintostrategicplanning,werecommendcombiningthemegatrendsoftheRolandBergerTrendCompendium2050

withtheRolandBergerscenarioplanningapproach

IsitworthdealingwithmegatrendswhengloballyimpactfuleventssuchastheCOVID-19pandemicorthewarinUkrainearetakingplace?

Ofcourse!ThecoronaviruspandemicandthewarinUkrainehadfar-reachingconsequencesanddeeplyaffectedpeople,economies,andpoliticsbutneithereventhasderailedthemegatrendsanalyzedherein–suchistheinherentnatureofmegatrends:climatechange,societal

aging,ortechnologicalinnovationsdonotlosetheirmomentum,theirdirection,ortheirimportance.Tocopewithsuchchallengesandtomasterresultingopportunities,ourawarenessandourunderstandingofmegatrendsisvital–notleasttodevelopsustainableanswers.

RolandBerger|2

…andcoverssixmegatrendsthatshapethefuturedevelopmentofourworldto2050

5

Technology&Innovation

Valueof

Innovation

Frontier

Technologies

Humans&

Machines

1

People&Society

2

Politics&Governance

3

Environment&Resources

4

Economics&Business

6

Health&Care

Population

Migration

Education&Labor

Values

GlobalRisks

Geopolitics

FutureofDemocracy

ClimateChange&Pollution

Biodiversity

Water

Resources&RawMaterials

GlobalHealthChallenges

GlobalEconomics

HealthcareoftheFuture

PowerShifts

Caregiving

Energy

Transformation

DebtChallenge

RoRlnladneBrregrer||33

Innovationisthekeytosustainablegrowth-Frontiertechnologiespromisevastfuturepotentialwhileraisingconcernsabouthumanvalues

Subtrendsofmegatrend"Economics&Business"

1

2

3

Valueof

Innovation

Frontier

Technologies

Humans&

Machines

RolandBerger|4

Technology&Innovation

5.1

Valueof

Innovation

5.2

Frontier

Technologies

5.3

Humans&Machines

Technology&Innovation

Thevalueofinnovationcanbeseeninvariousimportantareas-Economically,socially,andintermsofsustainability

Keyareaswhereinnovationaddsvalue

welfare

social

Drives

Drivesthe

Reducesinequality.Wheninnovationsarewidelyaccessible(lowprices,goodavailability),they

havethepotentialtoimprovethelivesofpoorpeople(e.g.microcredit,smartphones,solarenergysystems)

5.1

Valueof

Innovation

economy

Attractsconsumersandcreatesnew

markets.Throughnewofferings/newwaysofpayment

Drivesprosperity.Economicgrowth(drivenbyinnovation,notpopulationgrowth)increaseswelfare(GDPpercapita).Innovation-driven

Transformsbusinessmodels.Withanewproduct-/marketapproach,valuechain,revenuemodel

companiescanprovidemoreandbetterjobopportunitieswithhigherpay

5.2

Frontier

Technologies

Drivesthefoundationofstart-ups.An

innovativeideaisacorepillarofastart-up

Innovation

Attractsinvestors.Innovationshavethepotentialtogeneratehighreturns

Increasesproductivity.Byoptimizingprocesses

5.3

Humans&Machines

Driveseconomicgrowth.Inadditionto

increasesinthefactorsofproductionlaborandcapital,technologicalprogressisthe

thirddriverofeconomicgrowth

LowersGHGemissions.Greeninnovationscanreducegreenhousegasemissionsfromallsectors(energyproduction,industry,transportation,buildings),thuscontributingsignificantlytothefightagainstclimatechange

Decouplesoutputfromresource-intensiveinputs.Innovationscanlowertheamountof(natural)resourcesneededthroughoutthevaluechain

Drivessustainability

Enablescircularity.Innovationisacornerstonetoadvancingtheprinciplesofthecirculareconomy:reduce,reuse,recycle

RolandBerger|5

Source:RolandBerger

Technology&Innovation

Innovationcombinesvalue-addinginventionswithsuccessfulmarketpenetration,andcanbecategorizedintodifferenttypes

Typesofinnovation

5.1

Valueof

Innovation

Offering

Configuration

Productsystem

Businessmodel

?Innovationistheprocessofturningnewideasintovalue,intheformofnewofferings,anewconfigurationoranewuserexperience

?Innovationiscomplexandgoesbeyondmerecreativeinventiveness;innovationincludes

Product

performance

Network

essential,practicalstepstofacilitateadoptionandmarketpenetration

5.2

Frontier

Technologies

?Innovationscanbecategorizedintodifferenttypes

Technologicalbreakthroughs

comprise

combinationsof

thesetypesof

innovation

–Productofferinginnovationscanbe

subdividedintoproductperformanceand

Customer

engagement

Structure

productsysteminnovation,leadingtomoredifferentiatedproductsand–potentially–toanecosystemofassociatedservicesand

5.3

Humans&Machines

products

–Innovationregardingtheconfigurationofacompanycanbesubdividedintobusiness

model,network,structure,andprocess

BrandProcess

innovation.Suchinternalinnovationsprovidecrucialdownstreameffects,enabling

innovationinotherareas

–Innovationsinuserexperienceaffect

customersdirectly,suchaspublic

ExperienceChannelService

appearanceorreputationofacompany.Innovationsinareasofservice,channels,branding,andcustomerengagementfallunderthiscategoryofinnovation

RolandBerger|6

Source:WEF;RolandBerger

TechnologyTohaveanimpactonthesocietyandtheeconomy,innovationsneedto&Innovationreachcriticalmass

DiffusionofinnovationsaccordingtoRogers

5.1

Valueof

Innovation

Reachingcriticalmass(earlymajority):

Overcomingthe"marketingchasm"

100

5.2

Frontier

Technologies

75

50

5.3

Humans&Machines

25

0

2.5%

Innovators

13.5%

Early

adopters

34%

Early

majority

34%

Late

majority

16%

Laggards

Shareofadopters[%]Marketshareoftheinnovation[%]

Marketshare%

?In1962,EverettRogers,aUS

communicationtheoristand

sociologist,producedastillwidelyusedtheoryoftheadoptionof

innovationsamongindividualsandorganizations

?Rogersidentifiedfivekindsof

adopters:innovators(willingtotakerisks),earlyadopters(opinion

leaders),earlymajority(having

contactwithearlyadoptersand

aboveaveragesocialstatus),late

majority(highdegreeofskepticism),andlaggards(aversiontochange-agents)

?Toreachcriticalmass,aninnovationmustmakethetransitionfromearlyadopterstotheearlymajority

(overcomingthe"marketingchasm")

?Thefivestagesofadoptionare

knowledge/awareness,persuasion,decision,implementation,and

confirmation

?Thequestionwhetherthediffusion

ofinnovationhasacceleratedover

thetimeisstillopen.Someanalysessuggestthatthisisthecase,buttheyhaveanalyticalweaknesses

RolandBerger|7

Source:Rogers,E.;RolandBerger

Technology&Innovation

Innovationishard:Topinnovatingcountriesremainbroadlythesameoverthepastdecade-SouthKoreaandGermanyaretheonlytop10newcomers

5.1

Valueof

Innovation

Country20142024Country

?Theinnovationprocessiscomplex,hardandtimeintensive:changescanbeslow

?Atfirstglance,themostinnovative

countriesinthetopsegmentappear

broadlythesameoverthepastdecade–

withfewexceptions.OnlySouthKoreaandGermanyhaveadvanced(inGermany's

caseitisacomeback)intothetop10of

theWIPO'sglobalinnovationindexranking

?Belowthetop10,thereismoreroomformovement:theonestowatchinclude

FranceandEstonia–theformerhas

gainedmomentum,upfrom22ndplacetenyearago,nowin12thplace,whilethelatterhasrisenthroughtheranks,from

24thplacein2014to16thinthecurrentranking.Japanisalsobackinthisgroup

?Overall,Chinahasmadeincredible

progress,slowlyrisingfrom29thto11thplace,whileHongKong(China)haslost8places,juststayingintheglobaltop20

?Bycontrast,LuxembourgandIrelandjustmanagetoclingontotheirpositions

amongthetop20,whileNorwayhasfallenoutofthisgroup–instarkcontrasttoits

Nordicneighbors,whichhavesolidlybeenpartofthemostinnovativetop10

countriesfordecades

5.2

Frontier

Technologies

5.3

Humans&Machines

Globalinnovationindexranking,bycountryrank,2014vs2024

Switzerland

1

Switzerland

UK

2

Sweden

Sweden

3

USA

Finland

4

Singapore

Netherlands

5

UK

USA

6

SouthKorea

Singapore

7

Finland

Denmark

8

Netherlands

Luxembourg

9

Germany

HongKong(China)

10

Denmark

Ireland

11

China

Canada

12

France

Germany

13

Japan

Norway

14

Canada

Israel

15

Israel

SouthKorea

16

Estonia

Australia

17

Austria

NewZealand

18

HongKong(China)

Iceland

19

Ireland

Austria

20

Luxembourg

Japan

21

Norway

France

22

Iceland

...

China

RolandBerger|8

Source:WIPO;RolandBerger

Technology&Innovation

Acountry'sabilitytoinnovateisdeterminedbyacomplexcombination

ofenablingfactors-Top10innovativecountriesareadvancedeconomies

WIPOGlobalInnovationIndex(GII)rankingsoverallandbyinnovationpillar,20241)

5.1

Valueof

Innovation

Knowledge&technology

outputs

Business

sophistication

Creativeoutputs

Country

InstitutionsHuman

GII

InfrastructureMarket

capital&

sophistication

(overall)

research

3

4

5

4

1

1

7

Sweden

Switzerland1

9

1

6

2

1

16

3

US

2

12

1

2

4

8

30

17

5.2

3

9

1

2

7

3

19

11

Singapore4

UK

Frontier

3

5

26

7

18

3

14

Technologies

5

2

10

24

1

15

9

5

4

6

2

11

8

6

17

7

SouthKorea6

5.3

Humans&Machines

9

34

18

41

12

7

30

15

Finland

Netherlands

8

9

14

25

14

7

8

7

Germany

9

19

5

27

13

18

11

5

Denmark

10

2

9

8

21

12

13

10

China

11

44

22

5

16

11

3

14

France

12

29

16

19

10

17

16

4

Japan

13

23

19

13

8

6

12

22

(e)Canada

14

14

11

21

4

13

20

25

Israel

1)ThepillarsoftheGIIaremeasuredinthefollowingcategoriesandcontain78indicatorsintotal.Institutions:Politicalenvironment,Regulatoryenvironment,Businessenvironment;Humancapital&research:Education,Tertiaryeducation,R&D;Infrastructure:ICTs,Generalinfrastructure,Ecologicalsustainability;Marketsophistication:Credit,Investment,Trade&diversification&marketscale;Businesssophistication:Knowledgeworkers,Innovativelinkages,Knowledgeabsorption;Knowledge&technologyoutput:Knowledgecreation,

Knowledgeimpact,Knowledgediffusion;Creativeoutputs:Intangibleassets,Creativegoodsandservices,Onlinecreativity

RolandBerger|9

Source:WIPO;RolandBerger

Technology&Innovation

Innovationdrivestheprosperityofnations-Manydevelopingcountrieslackthecapacitytoinnovate

WIPOGlobalInnovationIndex(GII)andGDPpercapitaPPP,2024[Index,USD]

5.1

Valueof

Innovation

5.2

Frontier

Technologies

5.3

Humans&Machines

GDPpercapitaPPPnominal[USD]

140,000

120,000

100,000

80,000

60,000

40,000

20,000

0

SingaporeLuxembourg

Ireland

Qatar

Norway

BruneiDarussalam

UAEUSSwitzerland

Denmark

NetherlandsGermany

Canada

SaudiArabia

Bahrain

SwedenFinland

Israel

France

Japan

Russia

SouthKoreaUK

Türkiye

ArgentinaAngola

Nigeria

Brazil

China

SouthAfricaIndia

10152025303540455055606570

GlobalInnovationIndex

Advancedeconomies●Emergingmarkets&developingeconomies

?Anation'sinnovativenessisakeydriverofproductivity,growth,andprosperity

?TheGlobalInnovationIndex(GII)scorescountriesfrom0to100basedontheirabilitytoinnovate.Theindexanalyzescountriesonavarietyofmetrics,includingR&Dintensity,patent

applications,tertiaryeducationefficiency,regulatory

environment,productivity,high-techdensity,andresearcherconcentration

?LookingattheGlobalInnovationIndexfromaGDP/capita

perspective,themessageisclear:thehigher(lower)countriesscoreoninnovationthehigher(lower)theirGDP/capita.Chinaisanexceptioninthatithassuccessfullybuiltupitsinnovation

strength,butstillhasalowerGDP/capitathandevelopedcountries

?Manydevelopingcountrieslackthecapacityandaccessto

institutionsandskillstobetterpositionthemselvesintheglobalinnovationrace.Provennetworksofhighereducationand

researchinstitutions,aswellastechnologycompanies

engagedinR&D-bothwellestablishedindevelopedcountries-areparticularlylacking

?Togainacomprehensivepictureofacountry'sinnovation

capabilities,differentinnovationindicesshouldbeused.In

additiontotheGII,the"InnovationIndicator",aninnovation

indexjointlydevelopedbyBDI,FraunhoferISI,ZEW,andRolandBerger,delvesdeeperintothistopic.Itmeasurestheinnovationcapabilityof35developedandemergingmarkets.Thecriteria

includetheabilitytofosterinnovations,thepositioninkeytechnologies,andthestrengthintermsofsustainability1)

RolandBerger|10

1)SeeBDI/FraunhoferISI/ZEW/RolandBerger:InnovationIndicator2024Source:WIPO;WorldBank;OxfordEconomics;RolandBerger

Technology&Innovation

Innovationstrengthimpactsproductivity-Again,advancedeconomiesareinthelead,butimportantEMshavecaughtupoverthepastthreedecades

Productivity:RealGDPperhourworked,1995and2023[USDPPP,%]

+53.6%

87

5.1

Valueof

Innovation

?Productivitymeasurestheefficiencywithwhichinputssuchaslabor,

+26.6%

capital,andtechnologyare

78

convertedintooutputs,namelygoodsandservices

+74.2%

?Laborproductivity,measuredbyGDPperhourworked,showshow

5.2

Frontier

Technologies

62

+139.6%

51

59

efficientlylaborinputsareutilizedintheproductionprocess

57

?Basedontheirleadineconomic

structuresanddrivenbytheir

innovationstrength,advanced

economieshavebuiltupmost

efficientproductionprocesses

5.3

Humans&Machines

34

leadingtotheirhighlaborproductivity

+15.7%

?Inthelastthreedecadesemerging

+716.4%

markets(EMs)inAsiaandEurope

+106.8%

22

21

19

+347.2%

9

18

havecaughtupbyoutperformingtheproductivitygrowthratesof

15

advancedeconomiesbyfar

7

?Despitethecatch-upprocess,the

gapbetweenadvancedand

22

emergingeconomiesisstill

significant.Thisisnotonlyduetoa

USAdvancedAdvancedEmerging

EuropeAsiaEurope

Latin

America

andthe

Caribbean

SoutheastAsia

China

India

gapininnovationstrengthsbutalso

duetoalargenumberofjobswithlowproductivityinemergingmarkets

19952023

(e.g.inagriculture)

RolandBerger|11

Source:TheConferenceBoard;RolandBerger

Technology&Innovation

HumancapitalandR&Dareparticularlyimportantleversfortheimprovementofacountry'sinnovationperformance

5.1

Valueof

Innovation

5.2

Frontier

Technologies

5.3

Humans&Machines

HumancapitalandR&D:Selectedleversandmeasuresforimprovement

Schooleducation

Highereducation

Research&development

Lever

Exampleof

measures

Lever

Exampleof

measures

Lever

Exampleof

measures

Government

expenditureoneducation

Shiftbudgetpriorities,focusonfunding

education

Tertiaryschoolenrolment

Improvetransitionfromsecondarytotertiaryeducation(e.g.,bysupportingpoorerstudents)

Researcherspermillionpopulation

MakeR&Das

attractiveaspossible,e.g.,byloweringlegalbarriers,reducing

administrative

burdens,providingsufficientfunding

Schoollifeexpectancy

Increasethenumberofyearsof

compulsoryeducation

Graduatesinscienceandengineering

Attractmorestudentstothesedisciplines;

raisethe

attractivenessofthesecourses

GrossexpenditureonR&D

Introducetax

incentivesforbusinessR&Dinvestment,

increasegovernmentfunding

PISAscalesin

mathematics,

readingandscience

Setprioritiesforcoreschoolsubjects

Tertiaryinboundmobility

Attractandsupport

foreignstudents,e.g.,byfindingaflat,

learningthelanguageandculture

Averagescoreofacountry'stop3

universities

(accordingtobest-in-classrankings)

Promoteacademicexcellence

(e.g.,through

excellenceinitiatives)

Pupilteacherratio

Trainandrecruitmoreteachers;makethe

professionmoreattractive(e.g.

throughbetterpay)

RolandBerger|12

Source:WIPO;RolandBerger

TechnologyWinningatinnovationstartsintheclassroom–Becomingafutureleader&Innovationininnovationrequiresinvestmentineducation…

WIPOGlobalInnovationIndex(GII)2024andaveragePISAoutcomescore2022[Indices]

5.1

Valueof

Innovation

5.2

Frontier

Technologies

5.3

Humans&Machines

GlobalInnovationIndex

70

65

60

55

50

45

40

35

30

25

20

15

10

Switzerland

UK

Finland

Canada

SwedenUS

Singapore

ChinaJapan

GermanyFrance

Israel

Ireland

Italy

Cyprus

UAE

Spain

Malaysia

Poland

SaudiArabiaIndonesia

Greece

Brazil

Slovakia

Mexico

Albania

CambodiaAzerbaijan

Guatemala

556065707580859095100

PISAoutcome1)

▲Advancedeconomies●Emergingmarkets&developingeconomies

?Innovationisdrivenbyavarietyoffactors,oneofwhichistheeducationalbaseofacountry

?Innovationrequireshigh-

qualityhumancapitalthat

canthinkbeyondthelimitsofexistingtechnologiesandcreativelyturnideasinto

reality

?Modelsofeconomicgrowthsuggestthatcountrieswithbettereducationsystems

havebetterinnovationcapabilities

?Empirically,countrieswithhigherscoresinthe2022

PISAstudyhave,on

average,higherscoresin

theGlobalInnovationIndex

?Improvingacountry'sfutureabilitytoinnovatethereforestartsintheclassroomandrequiresthebestpossible

educationalresourcesaswellassufficient

investmentinstudents,teachers,andfacilities

1)Thevaluerepresentsthecountry'saverageoutcomeinthePISAstudy(OECDProgrammeforInternationalStudentAssessment)inallthreedisciplinesofreading,mathematics,andsciencerelativetoSingapore'soutcome(Singapore=100)in2022andwereeditedassuchbyWIPO

RolandBerger|13

Source:WIPO;RolandBerger

Technology…aswellasinvestmentinR&D–Asakeydriverofbest-in-classinnovation,&InnovationR&Dexpenditurelevelssignalconfidenceinthefuture

WIPOGlobalInnovationIndex2024andGrossExpenditureonR&D2022[%ofGDP,Index]

5.1

Valueof

Innovation

5.2

Frontier

Technologies

5.3

Humans&Machines

GlobalInnovationIndex

70

60

50

40

30

Sweden

Netherlands

USFinland

Germany

Denmark

ChinaCanadaFrance

Japan

Israel

Austria

Ireland

Belgium

Italy

Bulgaria

SpainLithuania

Hungary

Poland

Latvia

Slovakia

Romania

0.00.51.01.52.02.53.03.54.04.55.05.56.06.5

GERDasapercentageofGDP

Advancedeconomies●Emergingmarkets&developingeconomies

?Investingfinancial

resourcesinR&Dseemsasobviousasitisessentialforacountrytoremainor

becomemoreinnovative

?Innovationprocessesareresourceintensiveand

subjecttouncertaintiessuchasfailureandsunkcosts

?However,R&Dinvestmentandinnovationare

positivelycorrelated:

fundingandfostering

innovationyieldsfuturerewards

?Lookingattheprocessatamicroeconomiclevel,

investmentdecisionssignal

expectationsabouttheimpactofinnovationandpotentialfuturereturns:

highlyfundedinnovative

ideassignalfuturepromisetostakeholdersand

confidenceinthesuccessfulcompletionofthe

innovationprocess

RolandBerger|14

1)Here,weusetheGIIresultsfrom2024andGERDdataforthelatestavailableyearof2022Source:WIPO;OECD;RolandBerger

Technology&Innovation

TheUSandChinaaretheleadingplayersregardingR&Dexpenditure-EUlackssimilargrowthrates

GrossdomesticexpenditureonR&Dofselectedeconomies,2002-2022[USDm,constant2015PPPprices]

5.1

Valueof

Innovation

800

US

700

China

5.2

Frontier

Technologies

600

500

400

EU

5.3

Humans&Machines

300

200

Japan

Germany

100

SouthKoreaUK

France

0

20022007201220172022

?WhiletheEUisexperiencingslowgrowthinR&D

spending,theUSand

especiallyChinaare

allocatingincreasing

resourcestoresearchanddevelopment

?Moreover,ChinawasabletocatchuptotheUSby

shrinkingtheinvestment

gapfrom16%ofUS

investmentsin2002to90%in2022,simultaneously

overtakingJapanandtheEU

?Incomparison,whileChinaincreasedtheirR&D

expenditureby13%

annually,theEUcouldonlyrecordayearlygrowthrateof2.6%from2002to2022

?TheUSremainsatthetopoftheR&Dexpenditure

rankingwithasignificantlysharpincreaseintheyearsafter2012

RolandBerger|15

Source:OECD;RolandBerger

Technology&Innovation

R&DexpenditureinOECDcountriesisdrivenbythebusinesssector,withprivateR&Dspendingoutpacingpublicfunding

GrossR&Dexpenditurein

OECDbysegment,2022[%]

5.1

Valueof

Innovation

Higher

education1)Government2)

Other

2%

9%16%

5.2

Frontier

Technologies

5.3

Humans&Machines

74%

Businessenterprise

RealgrossR&DexpenditureinOECDby

segment,growth2007-2022[Index,2007=100]

180

160

140

120

100

80

200720102013201620192022

TotalexpenditureBusinessenterprise

HighereducationGovernment

?InOECDcountries,the

businesssectoraccounts

fornearlythree-quartersofR&Dspending,makingitthemostimpactfuldriverof

innovation

?From2007to2022,all

sectorshaveincreasedtheirspending,with

businessinvestments

demonstratingthemostsubstantialgrowth

?GovernmentR&Dspendingexhibitedtheleastgrowth.Asignificantfactor

contributingtothistrendisthehighlevelof

governmentdebtinOECD

countries,restrictingthe

capacityofgovernmentstoraisetheirR&Dexpenditure

1)HigherEducationiscomposedof:alluniversities,collegesoftechnologyandotherinstitutionsprovidingformaltertiaryeducationprograms,whatevertheirsourceoffinanceorlegalstatus.Allresearchinstitutes,centers,experimentalstationsandclinicsthathavetheirR&Dactivitiesunderthedirectcontrolof,oradministeredby,tertiaryeducationinstitutions

2)Governmentisdefinedas:allunitsofcentral/federal,regional/stateandlocal/municipalgovernment,includingsocialsecurityfunds,exceptthoseunitsthatfitthedescriptionofhighereducationinstitutions

RolandBerger|16

Source:OECD;RolandBerger

Technology&Innovation

5.1

Valueof

Innovation

5.2

Frontier

Technologies

5.3

Humans&Machines

CompaniesintheICT,pharma,softwareandautomobilesectorsspendmostonR&Dasrevenuesgrow–Intensitytickedupwardsorstayedconstant

NominalR&Dspendings

byindustry,2017-20231)[USDbn]

320

300

300.5

280

260

240

220

200

180

160

140

120

100

80

60

40

20

0

259.9

241.6

175.5

44.4

30.3

21.3

2017201820192020202120222023

R&Dspendings/revenues

byindustry,2017-20231)[%]

18.9

19

18

17

16

15

14.3

14

13

12

11

10

9

8.1

8

7

6

5

4.4

3.6

3.4

1.9

4

3

2

1

0

2017201820192020202120222023

Software&ICTservices

Construction&industrialmetals

ICThardware&

electricalequipment

Pharma

&biotech

Travel,leisure&personalgoods

Automobiles

Healthcareequipment&services

?R&Dspendinginabsolute

termshasriseninalmostallsectorsbutparticularlyin

thosewithhigherrevenueinflows

?Asthereislittledynamisminspendingintensity,sectorsthathavebeenableto

attractmoreincome,as

reflectedinrisingrevenues,allocatemoremoney(butnotmoreoftheirrevenues)toR&Dspending

?Forexample,theICT

hardwareandelectrical

equipmentsector,accountsforthehighestexpenditureinabsoluteterms,while

investingonaverage

around8%ofitsturnoverinR&D

?Innovationismost

importantinthe

pharmaceutical&biotech

andsoftware&ICTservicessectors,whichspendthe

largestshareoftheirrevenuesonR&D

RolandBerger|17

1)BasedonR&Dspendingof1,700outofthebiggest2,500corporateR&DspendersgloballySource:WIPO;RolandBerger

Technology&Innovation

Majoreconomiesidentifyandfundcriticalandemergingtechnologiestohelpthemwintheglobalinnovationrace

5.1

Valueof

Innovation

5.2

Frontier

Technologies

5.3

Humans&Machines

Overviewofarepresentativeselectionofkeytechnologyareas,strategies,andgovernmentalsupportmeasuresinselectedcountriesandtheEU

USA

EU

China

Germany

SouthKorea

Japan

Number

ofkey

technologyareas

19"criticaland

emerging

technologies"with2—15"criticaland

emerging

technology

subfields"each

(103subfieldsintotal)

10"critical

technologyareas"with4-5

technologieseach(42technologies

intotal)

20"technologiesascriticalfields"

12"key

technologies"

12"strategic

technologies"

7"cutting-edge

areasofscienceandtechnology"with3—5specifications

each(28intotal)

Strategies"UnitedStates

governmentnationalstandardsstrategy

forcriticaland

emergingtechno-logy,"May2023

Commission

recommendationonsecurity-relevant

technologyareas,October20231

14thFive-yearPlan,March2021

Shapingthefuturewithtechnologicalconfidence,"BMBFimpulsepaper,April2021

"Nationalstrategictechnologynurture:plan,"October2022

Economicsecuritystrategy,"February2022

Selectedsupport

measures

USD369bnIRA

USD230bnforsemiconductorproduction

USD140bnfor

electricvehiclesandbatteries

USD20bnfor

biomanufacturing

USD294bnforthe

"Greenindustrialdeal"

USD141.5bnfor

"NextGenerationEU"

USD762mfor5Ginfrastructure

(Horizon2020)

USD980mforsmartnetworksandservices

US