The global R&D map is being redrawn, caught between forces of nationalism and the undeniable pull of international collaboration. While the aftershocks of the pandemic and shifting political winds have led some nations to turn inward, the race for innovation is driving a surprising surge in cross-border investment. For instance, South Korea’s Ministry of Science and ICT, Seoul, announced earlier this year that it would operate R&D centers in the U.S. and Europe to bolster its R&D initiatives. Tokyo and Shenzhen are also seeing an influx of capital from abroad.

As R&D infrastructure is strongest in the U.S., Asia, and Europe, it is no wonder that cities in these regions are looking outward to tap into the global pool of talent and capital in their quest capitalize on emerging technologies. This dynamic is apparent in the following exploration of some of the world’s most active R&D hubs, which are loosely ranked by the R&D spending of prominent companies based on data form The 2023 EU Industrial R&D Investment Scoreboard.  

Silicon Valley

Though the term “Silicon Valley” was coined in 1971, the region continues to be unique internationally for its innovation ecosystem, but the region has seen some struggles of late. VC investment in the region, although moderating, continues to lead nationally. While the average sales price per square foot for R&D space dropped to its lowest level since 2017, reaching $265.04 in 2024, asking rents for direct rentals hit all-time highs, according to Kidder Mathews.

Tokyo

Japan is aiming to revitalize its semiconductor industry. The Japanese government has established a 100 trillion yen target for foreign direct investment in Japan, as Nikkei reported. Among the leaders of the semiconductor revitalization is Tokyo Electron Ltd. (TEL), Japan’s largest chip company. Tokyo is also home to Sony and Toshiba. The latter invested roughly 34 billion yen in a new R&D site called Innovation Palette in Kawasaki.

Shenzhen

Shenzhen continues to solidify its position as an R&D trailblazer. In 2023, the city’s R&D investment reached 188.049 billion yuan (US$26.31 billion), representing 5.81% of its GDP, according to government figures. The private sector accounted for 94.9% of this total investment. The city’s digital economy is projected to account for more than 31% of GDP by 2025, according to South China Morning Post.

Boston

Boston and Cambridge continue to be a premier research hub internationally, especially in biopharma. The region has long excelled in its ability to attract substantial funding. The area was responsible for much of the state’s $7.67 billion in VC investment in 2023. While local VC funding has recently fallen, the region remains a leading life sciences hub. In 2023, Copenhagen-headquartered Novo Nordisk’s announced in 2023 that it would establish a major R&D hub in the area.

New York City

New York City’s biotech and life sciences sectors are thriving, driven by significant investments and a supportive policy environment. In 2023, the city’s biotech companies secured $2.91 billion in funding, averaging $96.96 million per firm, according to Drug Discovery Trends. The city is home to over 5,000 life science companies and is attracting top talent in the field, as reported by New York YIMBY.

Beijing

Beijing is seeing robust R&D growth, thanks to government incentives and a focus on high-tech and emerging industries, especially in AI. The city aims to become an international AI innovation hub by 2025, with the AI industry expected to reach a core scale of 300 billion yuan ($42.39 billion), as reported by Beijing E-Town. In addition, foreign funding to Beijing is on the rise. As of early 2024, the total number of foreign-funded R&D centers in Beijing hit 107.

Shanghai

Shanghai registered record-high foreign investment hitting $24 billion in 2023, according to English.www.gov.cn. In 2023, the city added 65 regional headquarters of multinational firms and 30 foreign-funded R&D centers, bringing the totals to 956 and 561, respectively, as China Daily reported. Biomedicine is a key industry in Shanghai, with the city signing 63 new foreign investment projects in 2023, totaling $6.47 billion.

London

London remains a central R&D hub with a prominent focus on fintech, healthtech, and AI. The ICT sector in London is also thriving. In 2023, AI-related companies in London captured £2.2 billion in investment, according to Grow London. In addition, pharma companies like GSK and AstraZeneca are also leading R&D investors globally. Causality in Healthcare AI with Real Data (CHAI) Hub are also notable investors in innovation in life sciences.

Paris

The Paris Region attracts substantial foreign direct investment (FDI) and excels in R&D, especially in health industries and renewable energy. The region accounted for 41% of France’s total R&D expenditure in 2021, with 37.9% of the country’s R&D workforce, according to Paris Region Facts and Figures 2024. The Paris Region’s R&D expenditure hovers around €21.7 billion while employing 182,772 full-time professionals.

Seoul

Seoul is witnessing record-high R&D investments from both government and corporate sectors, with a focus on maintaining its leadership in semiconductors and display technologies. The South Korean national R&D budget has grown to over 30 trillion won over the past six years, with a significant portion allocated to Seoul, according to Invest Seoul. In addition, the government committed 6.7 trillion won to science research in 2023, a 3.9% bump over 2021 levels.

Los Angeles

The City of Angels isn’t just home to Hollywood. Caltech, which manages the Jet Propulsion Laboratory, is based in the region while “Silicon Beach” is a budding innovation ecosystem along the coast. Los Angeles has also become a hub for “tech-tainment,” where technology and entertainment industries converge. The city is home to a range of tech sectors, including aerospace, electronics manufacturing, and internet research

San Diego

Long a biotech hub, San Diego continues to cement its reputation as a life sciences powerhouse. The city is attracting foreign companies seeking to establish or expand their R&D operations. ASML, a Netherlands-based semiconductor manufacturer, recently leased a 55,227 sq ft office and R&D facility in San Diego’s Rancho Bernardo submarket, according to The Registry SoCal. The city is also home to UCSD, the Salk Institute and Scripps Research Institute.

Tel Aviv

Private funding for Israeli tech in 2023 was estimated to reach nearly $10 billion, with disclosed funding standing at $7.9 billion, according to Startup Nation Central. In 2022, about 30% of investments by the Israel Innovation Authority were focused on life sciences, as Israel21c reported. Israel’s climate tech sector is also expanding, with 516 companies operating in this space, and fundraising growing from less than $500 million in 2018–2019 to over $2.5 billion in 2021.

Stockholm

With Stockholm leading the way, Sweden’s intramural R&D expenditure hit SEK 221.8 billion in 2023, a bump of SEK 5.9 billion from 2022, as Statistics Sweden noted. The country’s R&D intensity increased to 3.57% in 2023, with the automotive, ICT producers, and industrial sectors accounting for 78.8% of total Swedish R&D investment. Major companies like Atlas Copco AB and AB Volvo are innovators in the industrial and automotive sectors.

Munich

Munich continues to solidify its position as a leading R&D hub in Germany. The automotive industry remains a cornerstone, with BMW employing around 26,000 people in its Research and Innovation Center (FIZ). The city is also attracting major international tech companies, with Apple investing $2 billion in a new chip design center. Global tech giants including Google, Intel, IBM, Huawei, and NTT Docomo have established R&D outposts in the city.

Toronto

Toronto is emerging as a leader with a strong emphasis on AI and significant job growth in key sectors. AI job growth in Canada increased by almost a third in 2023, which was one of the highest growth rates across all industries. The city’s tech sector employs more than 300,000 people and attracting annual investments topping $5 billion. Unilever selected Toronto for its global AI hub in 2023.

Singapore

Singapore continues its strong commitment to R&D especiallyin deep tech, with a significant government budget supporting strategic growth. The government is investing more than S$11 billion in national research and development efforts, with a focus on AI, finance, and clean energy, according to Startup SG. Fixed asset investments in Singapore totaled S$12.7 billion in 2023, as The Straits Times noted.

Melbourne

Despite trends of declining R&D expenditure in Australia, Melbourne continues to attract investments in key sectors, focusing on digitalization and green technologies. The city has five universities ranked in the top 100 with Monash University especially renowned. According to Invest Victoria, the city is ranked as Australia’s most innovative city and the third most innovative city globally.

Berlin

Berlin benefits from Germany’s strong R&D landscape, with increased investments in the automotive, ICT, and pharmaceutical sectors. Germany’s R&D expenditure reached an all-time high of €121.4 billion in 2022, with businesses contributing more than two-thirds of the total, according to Germany Trade & Invest. Berlin has also launched the “Berlin Quantum Alliance” to strengthen R&D efforts related to quantum technologies.

Bangalore

Bangalore, the “Silicon Valley of India,” is experiencing a surge in R&D cash, especially from multinational companies like AMD and Medtronic. In 2023, AMD announced a $400 million investment over five years to expand its operations in India, including a new design center in Bangalore (AMD Technostar), as TechCircle noted. Bangalore is home to a large number of engineering colleges and institutes, producing more than 90,000 engineering graduates each year.

All of the images pictured are from Adobe Stock apart from the Berlin image, which is from Wikimedia Commons.