» R&D Investment Shifts to China and India

R&D Investment Shifts to China and India

I have no idea on the accuracy of these figures I have just read from the DaVinci Institute Report, but these are quite impressive:

R&D Investment Shifts to China and India – When you look at investing in R&D, China has emerged as the clear favorite in a new survey. A global survey of 104 senior executives conducted by London-based Economist Intelligence Unit shows the growing attractiveness of the Asian markets as the choice location for technology innovation.

“China was way in front with 39% of respondents naming the mainland as their top choice for R&D spending. A total of 29% chose the US, while 28% favored India for overseas R&D spending over the next three years.

A total of 52 per cent of firms plan to increase their overseas investment in R&D over the next three years, while another 38 per cent plan to maintain current spending levels over the same period.

Britain was in fourth place, favored by 24 per cent, and Germany was the choice of 19 per cent of the executives polled. Others in the top 10 were Britain (24 %), Germany (19%), Brazil (11 %), Japan (10 %), France and Italy (both 9 %), and the Czech Republic (8 %).

Among companies that are publicly traded in the U.S., those that are headquartered abroad are spending more than U.S. firms on R&D as a fraction of sales. This ratio, which is termed research intensity, is 4.2% for firms based in Japan, 3.2% in Germany, 5.7% in Finland, and 5.1% in Sweden. But this figure is just 1.7% in the U.S. and the U.K.”

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  • http://www.tjacobi.com Tj

    my interpretation of such figures would be different. If you have manufacturing facilities in a country you simply need some R&D facilities in these countries just to make sure the knowledge gets transfered from the place you actually do research to the manufacturing site. Just compare the patents registered in Malaysia, Indonesia and Thailand as they have been primary target of FDI in the early 90s. You will see it is foreign technology that makes the pace although major investments have been made in local R&D.

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