India, China to be world's new R&D hub
The study conducted by Batelle predicts that competition for R and D funds will get more intense as globalisation of R and D grows. Smart ways to invest or spend!
By Sudeshna Sen, TNN |
LONDON: The focus of global research and development is shifting from the US to Asia, specifically India and China, a new study shows. In 10 years, the global research and development activity will shake loose the near-domination that the US has held for the past 50 years, and be split into thirds between the US, EU, and China and India in terms of efforts , funds and activity.
The shift, finds the study, is not just in terms of expenditures and investments, but a structural upheavals in the R&D enterprise and the complex interplay between funders and performers.
The study, conducted by Batelle, the world’s largest independent research and development organisation based in the US, finds that the long history of R&D interactions among the US, Western Europe and Japan has been growing to include the rest of Asia, specifically India and China.
“This growth has been unlike any other in recent years, and it foretells the approach to a new equilibrium in global scientific and technological practice,” said Jules Duga, a senior researcher at Battelle and global expert on R&D trends.
One of the key factors driving this change is that outsourcing and offshoring of R&D is becoming increasingly prevalent among all players in the R&D enterprise, with the US leading the trend. Close on the heels though are the EU and Asia, increasingly offshoring R&D to the US in order to be in a better position to enhance their market shares. At the same time, the US enterprise is also benefiting from the continued insourcing of R&D.
The study predicts that competition for R&D funds will get more intense, as the globalisation of R&D grows. Companies who are aiming to understand trends in order to make the best investments and to capitalise on the global economy, will look wider in their commitments.
“It is the internal structure of the R&D enterprise, and the roles and interplay among sectors, that have a direct bearing on the manner in which the investment in R&D will have the desired societal benefit outcomes of economic security, improved healthcare, and the like,” Duga said.
As markets expand in response to demands so has the desirability of having onsite or near-site technological support for manufacturing and distribution centres. Products which need to be localised for specific environments, as well as the possibility of cost savings in certain locales by using resident talent are additional drivers creating the global shift out of the US to Asia.
The shift, finds the study, is not just in terms of expenditures and investments, but a structural upheavals in the R&D enterprise and the complex interplay between funders and performers.
The study, conducted by Batelle, the world’s largest independent research and development organisation based in the US, finds that the long history of R&D interactions among the US, Western Europe and Japan has been growing to include the rest of Asia, specifically India and China.
“This growth has been unlike any other in recent years, and it foretells the approach to a new equilibrium in global scientific and technological practice,” said Jules Duga, a senior researcher at Battelle and global expert on R&D trends.
One of the key factors driving this change is that outsourcing and offshoring of R&D is becoming increasingly prevalent among all players in the R&D enterprise, with the US leading the trend. Close on the heels though are the EU and Asia, increasingly offshoring R&D to the US in order to be in a better position to enhance their market shares. At the same time, the US enterprise is also benefiting from the continued insourcing of R&D.
The study predicts that competition for R&D funds will get more intense, as the globalisation of R&D grows. Companies who are aiming to understand trends in order to make the best investments and to capitalise on the global economy, will look wider in their commitments.
ADVERTISEMENT
“It is the internal structure of the R&D enterprise, and the roles and interplay among sectors, that have a direct bearing on the manner in which the investment in R&D will have the desired societal benefit outcomes of economic security, improved healthcare, and the like,” Duga said.
As markets expand in response to demands so has the desirability of having onsite or near-site technological support for manufacturing and distribution centres. Products which need to be localised for specific environments, as well as the possibility of cost savings in certain locales by using resident talent are additional drivers creating the global shift out of the US to Asia.
Download
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
Download
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
ADVERTISEMENT
