Monday, January 18, 2010

Global Science and R&D: Asia Chips Away At US Edge

Even in the field of science and engineering, Asia appears to be rapidly chipping away at the edge of the Americans.

The press release from the US government's National Science Board (NSB) underscores such concerns, (bold highlights mine, interspersed charts from NSB)

``The state of the science and engineering (S&E) enterprise in America is strong, yet its lead is slipping, according to data released at the White House today by the National Science Board (NSB). Prepared biennially and delivered to the President and Congress on even numbered years by Jan. 15 as statutorily mandated, Science and Engineering Indicators (SEI) provides information on the scope, quality and vitality of America's science and engineering enterprise. SEI 2010 sheds light on America's position in the global economy.

``"The data begin to tell a worrisome story," said Kei Koizumi, assistant director for federal research and development (R&D)in the President's Office of Science and Technology Policy (OSTP). Calling SEI 2010 a "State of the Union on science, technology, engineering and mathematics," he noted that quot;U.S. dominance has eroded significantly."

``Koizumi and OSTP hosted the public rollout at which NSB Chairman Steven Beering, National Science Foundation (NSF) Director Arden L. Bement, Jr., and NSB members presented SEI 2010 data and described a mixed picture. NSB's SEI Committee Chairman Lou Lanzerotti noted the good news for those in the S&E community about public attitudes, "Scientists are about the same as firefighters in terms of prestige," he said. His presentation focussed attention on NSB's Digest, also released today, higlighting important trends and data points from across SEI 2010.

``Over the past decade, R&D intensity--how much of a country's economic activity or gross domestic product is expended on R&D--has grown considerably in Asia, while remaining steady in the U.S. Annual growth of R&D expenditures in the U.S. averaged 5 to 6 percent while in Asia, it has skyrocketed. In some Asian countries, R&D growth rate is two, three, even four, times that of the U.S.

``In terms of R&D expenditures as a share of economic output, while Japan has surpassed the U.S. for quite some time, South Korea is now in the lead--ahead of the U.S. and Japan. And why does this matter? Investment in R&D is a major driver of innovation, which builds on new knowledge and technologies, contributes to national competitiveness and furthers social welfare. R&D expenditures indicate the priority given to advancing science and technology (S&T) relative to other national goals.

[It is competition that serves as a major pillar of innovation. R&D is only utilized only in response to needs of the market.-Benson]


```NSB SEI 2010 Committee Member Jose-Marie Griffiths discussed another key indicator: intellectual research outputs. "While the U.S. continues to lead the world in research publications, China has become the second most prolific contributor." China's rapidly developing science base now produces 8 percent of the world's research publications, up from its just 2 percent of the world's share in 1995, when it ranked 14th.'"

The above signifies as empirical evidence, which supports our earlier post, exhibiting how Asian high tech companies have rose to the occasion, using the recent recession, to mount a serious challenge on the leadership of Western companies. [see Asian Companies Go For Value Added Risk Ventures]

The other areas of concern as cited by the NSB.

-Cross Border R&D or the globalization of the Research and Development function [yes, R&D isn't a national standalone thing as misperceived by protectionists, it's being collaborated by different institutions worldwide.]

According to the NSB, ``Overseas R&D expenditures by foreign affiliates of U.S. multinational companies (MNCs) rose from $12.6 billion in 1995 to $28.5 billion in 2006. Europe’s share of these overseas expenditures fell from 73% to 65%, and Asia’s share increased from 15% to 20%. Foreign MNCs spent $34 billion in the United States in 2006, up from $15 billion in 1995. European-owned companies’ share of these expenditures was little changed at 75%."

-Patents



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