United States leads OECD in defense R&D spending at $3.64 per $1,000 GDP

France: France is a major European economy, nuclear power, and the EU's leading defense R&D investor. It occupies fifth place in the OECD ranking of defense R&D budgets as a share of GDP. The country maintains strong national priorities in military research to support advanced capabilities. Germany: Germany is Europe's largest economy and a key EU member with a substantial industrial and defense capability. It ranks fourth in the OECD for defense R&D allocations measured against GDP. As one of the bloc's top two defense R&D spenders alongside France, it plays a central role in European security innovation. South Korea: South Korea is a major East Asian economy and rapidly expanding defense industrial base within the OECD. It holds the second-highest ranking in defense R&D allocations per unit of GDP. Sustained government focus has positioned the country as one of the fastest-growing arms producers and exporters globally. United States: The United States is the world's largest economy and leading military power among OECD nations. It ranks first in defense R&D budget allocations relative to GDP, outpacing all other listed countries by a wide margin according to the latest OECD data. The Trump administration's Department of War has outlined plans to expand such investments in the coming fiscal year. United Kingdom: The United Kingdom is a leading European economy and longstanding NATO ally with a developed defense sector. It places third among OECD countries in defense R&D spending intensity relative to GDP. Its Ministry of Defense has significantly scaled up net R&D expenditure in recent years. Department of War: The Department of War is the U.S. government entity responsible for national defense planning and budgeting. In April 2026 it announced a substantial increase in overall defense funding for fiscal year 2027, including dedicated growth in research and development programs focused on science and technology. Budget Trajectory: The U.S. Department of War is directing increased resources toward a general science and technology fund within its broader defense portfolio. Comparative Standing: The United States leads OECD peers by a substantial margin in defense R&D intensity, with the gap expected to widen under current policy plans. Innovation Spillover: Defense R&D investments have historically supported breakthroughs in civilian fields including computing, aerospace, satellites, medicine, and advanced materials.