This article looks at the 15 most advanced countries in Asia in 2024. If interested, you can also read our recent analysis of the 12 Most Technologically Advanced Countries in Latin America.
A report by McKinsey in 2020 highlighted the progress made by Asia in technology and innovation over the past decade, accounting for 52% of the global growth in technology companies’ revenues. The continent’s share of the new unicorns established between 2012 and 2020 stood at 36%, an improvement from the decade prior when the contribution was measured at 29%.
Moreover, Asia also represented 51% of the global growth in R&D expenditure during the period, led the world when it came to growth in the number of patents and also contributed significantly toward the increase in science and engineering research articles published. Between 2016 and 2018, three-fourths of the world’s STEM education graduates came from India, while in 2020, Asia went past Europe in combating climate change, emerging as the global leader in renewable technology with an installation capacity of 45%.
The advancements in technology and innovation have fueled economic growth in the region, where technology has widely been deployed across sectors, driving enhanced productivity in the corporate sphere, and boosting economic development and public service delivery at a macro level. Many Western observers have already dubbed the 21st century Asia’s century, and the continent now seems to be catching up to the expectations faster than anticipated.
Asia, which accounted for less than one-third of the global economy in purchasing power parity terms in 2000 is now on track to represent more than half of the world’s GDP by 2040, as per a report by McKinsey. The continent is also expected to represent more than 40% of the global consumption by then. Furthermore, according to PricewaterhouseCoopers, China and India are set to go past the United States as the world’s first and second largest economies by 2050, with the Chinese alone forecasted to make up 20% of the global economy over the next three decades.
Several large Western corporations including Apple Inc. (NASDAQ:AAPL) and Microsoft Corporation (NASDAQ:MSFT) have made inroads in the continent by outsourcing some of their key operations to Asia to tap into the lucrative opportunities offered by the huge markets, coupled with making the most of the cheap, skillful labor that is available in abundance in the region. About 95% of Apple Inc. (NASDAQ:AAPL)’s iPhones, iPads, and MacBooks are manufactured in China, today. The country, along with Hong Kong and Taiwan, was the source of 19% of the tech giant’s revenue during the fiscal year 2023. Apple Inc. (NASDAQ:AAPL) has recently further expanded its presence in Asia through its new stores opening in India and Malaysia.
Microsoft Corporation (NASDAQ:MSFT)’s investments in the continent have seen an uptick in Asia, with the company, in 2021, announcing the establishment of a new data center in Indonesia. The new setup is likely to increase revenues for the tech giant by $6.3 billion. On the other hand, the International Data Corporation (IDC) expects Microsoft Corporation (NASDAQ:MSFT) to add 100,000 new jobs and $39 billion to the United Arab Emirates’ economy through its cloud-based services between 2022 and 2026.
Asian corporations themselves contribute a whopping $19 trillion to the global economy every year. The continent is home to many of the largest corporations in the world, including the Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM), Toyota Motor Corporation (NYSE:TM), and Alibaba Group Holding Limited (NYSE:BABA).
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is a dominant player in the global foundry industry, accounting for 60% of all output. It is currently the third-best hardware stock to buy now, with 135 hedge funds bullish about the company, according to Insider Monkey’s database as of the first quarter of 2024. During May, the company’s revenue grew 30% to a total of $7.1 billion, driven by ASML’s announcement to ship its advanced high NA EUV scanner to TSM. The machine is crucial to future manufacturing technologies. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) has a forward P/E ratio of 26 at par with the industry average.
Japanese car manufacturer Toyota Motor Corporation (NYSE:TM) has a share of 11.5% of the world’s automobile industry. The company sold a record 11.2 million cars worldwide in 2023, which helped Toyota Motor Corporation (NYSE:TM) to retain its status as the world’s top car maker for a fourth successive year. On the other hand, Alibaba Group Holding Limited (NYSE:BABA) continues to remain a major force in the e-commerce market, controlling more than 50% of China’s online retail industry.
Methodology
We have ranked the most advanced countries in Asia in 2024 based on three weighted metrics: technological advancement, R&D expenditure as a share of the GDP (during the latest year for which data is available), and their level of human development. The weights, in order, were 40%, 40%, and 20%, respectively. Data was sourced from WIPO’s 2023 Global Innovation Index (GII), the World Bank, and the United Nations Development Programme.
It was observed where each country ranked on a particular metric and accordingly, it was assigned a weighted score. We then summed the weighted scores for each metric to get an overall score. The 15 Most Advanced Countries in Asia in 2024 are ranked in ascending order of their overall scores.
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With that said, let’s now head over to the list of the most advanced countries in Asia.
15. Vietnam
Global Innovation Index Rank (2023): 46
R&D Expenditure as a Share of GDP (2021): 0.43%
Human Development Index Score (2022): 0.726
Overall Score: 15.4
Vietnam is one of the most advanced countries in Asia, ranked 46th in the world and 13th in the continent for technology and innovation by the World Intellectual Property Organization. The country spent 0.43% of its GDP in 2021 on R&D expenditure. Moreover, according to the United Nations, Vietnam ranks 107 out of 193 countries and territories in human development.
14. India
Global Innovation Index Rank (2023): 40
R&D Expenditure as a Share of GDP (2020): 0.65%
Human Development Index Score (2022): 0.644
Overall Score: 14.2
India boasts the fifth largest economy in the world and is projected to become a $4 trillion economy by 2024-2025. It is ranked as the 40th most technologically advanced country in the world, and ranks 134th for human development, being placed in the medium human development category by the UN. India has the potential to further improve its position by increasing its R&D spending as a share of the GDP.
13. Saudi Arabia
Global Innovation Index Rank (2023): 48
R&D Expenditure as a Share of GDP (2022): 0.46%
Human Development Index Score (2022): 0.875
Overall Score: 13.8
The Saudi government is actively investing in a high-tech future. According to a report by the World Economic Forum, Riyadh has plans to increase its annual spending on R&D as a percentage of the GDP from 0.46% in 2022 to 2.5% by 2040. Technology is at the core of Crown Prince Mohammed bin Salman’s strategic initiative, including Vision 2030, which is set to transform the country socially and economically. Saudi Arabia is ranked 35th in the world for human development and is placed in the ‘very high human development’ category by the UN.
12. Qatar
Global Innovation Index Rank (2023): 50
R&D Expenditure as a Share of GDP (2021): 0.68%
Human Development Index Score (2022): 0.875
Overall Score: 13.4
Qatar is the fifteenth most advanced country in Asia for innovation and is ranked 50th in the world. It spends about 0.68% of its GDP on R&D expenditure, and is among the most developed countries in the Middle East, according to the United Nations. It is a high-income country due to its large oil and gas reserves. Qatar’s global reputation was further bolstered after hosting the Football World Cup on home soil in 2022.
11. Thailand
Global Innovation Index Rank (2023): 43
R&D Expenditure as a Share of GDP (2021): 1.21%
Human Development Index Score (2022): 0.803
Overall Score: 11
Thailand was listed among the ‘very high human development’ category by the United Nations in its Human Development Index 2022 after its score improved from 0.797 in 2021. It is ranked 66th in the world for human development. Moreover, it is the 12th most advanced country in Asia for innovation, according to the Global Innovation Index 2023. The country’s advancement in technology and human development is driven by a focus on R&D, which represented 1.21% of Thailand’s GDP in 2021 – the latest year for which data is available on the World Bank.
10. Malaysia
Global Innovation Index Rank (2023): 36
R&D Expenditure as a Share of GDP (2020): 0.95%
Human Development Index Score (2022): 0.807
Overall Score: 10.4
Malaysia is one of the most advanced countries in Asia, with a high human development index score, ranking 62nd in the world and 12th in the continent. It is the ninth most advanced country in technology and innovation in Asia and spends a fraction under one percent of its GDP on R&D expenditure. Several large multinationals, including Microsoft Corporation (NASDAQ:MSFT) maintain a presence in the country through their offices. Earlier this year in June, Apple Inc. (NASDAQ:AAPL) opened its first store in Malaysia in Kuala Lumpur.
9. Turkiye
Global Innovation Index Rank (2023): 39
R&D Expenditure as a Share of GDP (2021): 1.4%
Human Development Index Score (2022): 0.855
Overall Score: 9.4
Turkiye, located at the intersection of Asia and Europe, is one of the most advanced countries in the world, with a high human development index score of 0.855 as of 2022. The country spends well over one percent of its GDP on R&D expenditure. Turkiye was ranked as the 39th most technologically advanced country in the world in 2023 by WIPO in its Global Innovation Index.
8. Hong Kong
Global Innovation Index Rank (2023): 17
R&D Expenditure as a Share of GDP (2022): 1.07%
Human Development Index Score (2022): 0.956
Overall Score: 7
Hong Kong, a special administrative region of China, is considered among Asia’s most advanced countries, with a high human development score of 0.956 in 2022 – the highest in the continent. It is also ranked 17th for technology and innovation by WIPO. The government in Hong Kong spent over one percent of its GDP on R&D expenditure in 2022, which was 8% higher than the amount it spent during the year prior.
7. United Arab Emirates
Global Innovation Index Rank (2023): 32
R&D Expenditure as a Share of GDP (2021): 1.5%
Human Development Index Score (2022): 0.937
Overall Score: 6.6
The United Arab Emirates is one of the most advanced countries in Asia. The Emirati government has raised its R&D expenditure as a share of the GDP from a mere 0.7% in 2014 to 1.5% in 2021 – the latest year for which data is available. It is considered among the ‘very high human development’ category by the United Nations, with a HDI score of 0.937 in 2022. The UAE was recently ranked as the 32nd most technologically advanced country in the world as well by WIPO.
6. China
Global Innovation Index Rank (2023): 12
R&D Expenditure as a Share of GDP (2021): 2.43%
Human Development Index Score (2022): 0.788
Overall Score: 6.4
China has the second-largest economy in the world in terms of nominal GDP. The country has taken huge strides in improving human development and now ranks 75th in the world as of 2022, climbing four spots from 2021. Furthermore, it is the twelfth most advanced country worldwide for technology and innovation.
5. Japan
Global Innovation Index Rank (2023): 13
R&D Expenditure as a Share of GDP (2021): 3.3%
Human Development Index Score (2022): 0.92
Overall Score: 4.6
Japan ranks 24th in the world for human development, with a score of 0.92 in the UN’s Human Development Index 2022. Moreover, it was recently placed at the 13th spot by WIPO in its Global Innovation Index 2023. The country spends a little under one percent of its GDP on R&D expenditure. It is among the most advanced countries in Asia in 2024.
