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  A look at the share of total research expenditures held by governments shows France with the highest percentage,at about40%of expenditures.Japan's share shows the lowest level among selected countries,a figure that is probably affected by such factors as the extremely low share held by defense research and by the large amount of activity in the private sector (Figure2-1-4) .

  The large share of R&D expenditures carried by the private sector means that the figures tend to be easily swayed by fluctuations in the business environment (Figure2-1-5) .

Figure2-1-4 Share of R&D expenditures by financing sector in selected countries

Figure2-1-5Trends in overall growth in R&D expenditures,and gross domestic product(GDP)growth rates

  The decline in defense-related R&D expenditure since the end of the Cold War structure has resulted in a gradual,continuous decline in the share of R&D expenditures financed by governments in other countries,although it has been on the rise again in recent years.The share of R&D expenditure financed by the Japanese government has declined slightly for the second straight year. (Figure2-1-6)

  For the government share of expenditures in relation to gross domestic product(GDP),France had the highest percentage,followed in order by the United States,Germany,Japan,and the United Kingdom.Such expenditure for the United States and France has been increasing (Figure2-1-7) .

Figure2-1-6(1)Trends in government-financed R&D expenditures-Share of R&D expenditure financed by government

Figure2-1-6(2)Trends in government-financed R&D expenditures-Share of R&D expenditure exclusive of defense-related R&D expenditures

Figure2-1-7Trends in the proportion of government-financed R&D expenditures to gross domestic product(GDP)in selected countries