Innovations and R&D
The aim of the Dashboard is to delve deep into the spending on research and development and to share insights about important changes into the science and engineering landscape of the major Asian economies.
Asian Acquisitions of Western Companies
(in mln USD)
In 2020 China, outstripped the U.S. in putting out research papers in the natural sciences as the country’s spending on R&D hit a record high at 2.23 percent of its GDP in 2019, up by 0.09 percentage points from the previous year (National Bureau of Statistics (NBS)). This perfectly aligns with the long term Chinese plans to become a leading force in science and innovation as the first half of the century passes. This strategy was outlined in “Made in China 2025”.
With the rise of the local economies, the spending on scientific research on the Asian continent also increased with a huge percentage. In 2020 China, outstripped the U.S. in putting out research papers in the natural sciences as the country’s spending on R&D hit a record high at 2.23 percent of its GDP in 2019. This provides a major opportunity for multinational companies willing to outsource their R&D centers to such innovation powerhouses like India or China.
The second decade of the 21st century was marked by a high growth for the Indian economy. India’s real GDP growth was at its peak in March, 2010, when it reached 13.3%. The nominal GDP growth at that point was over 16.1%. The bad news was that in September 2019, this number was at 6.3%, its lowest in the decade. This decrease could be attributed to the sliding share of the industrial output. What is strange here is that this is only typical for post-industrial economies while India is yet to be fully industrialized. However, the Indian government has already set the ball rolling by announcing one of the largest and ambitious infrastructure projects earlier this year. It is also undertaking many projects planned earlier and reviving a few stalled ones. If the planning is successful, India may renew its ascendance.
“According to the World Intellectual Property Organization's Global Innovation Index, Singapore and South Korea are two of the most competitive economies in the world, owing considerably to their deployment of technology in the workplace and their upskilling programs. In 2017, Samsung overtook Intel as the world's largest semiconductor supplier and edged out IBM for the most patents filed. In 2021, South Korea will open the International Science Business Belt in Daejeon, a complex encompassing eighteen universities, science parks, research centers, and a heavy ion accelerator.”
The Future Is Asian: Global Order in the Twenty-first Century
by Parag Khanna p. 194
Research and Development (R&D) refers to innovative activities undertaken by corporations or governments in order to create new or to improve current services or products. It constitutes the first stage of the production process.
The R&D capacity needs to have a reasonable premonition about future issues in order to plan its structure beforehand. That activity can serve as an impetus for the acceleration of the economic growth of a single organization or a whole nation.
R&D expense is essentially the amount of money that a company spends on the activities mentioned above. Its importance is often underestimated by many companies and organizations and only noticed when it is too late. The significance of the R&D lies in its ability to provide competitive advantages in the global economic race by giving the business a focused edge over its rivals. Asia is the leading region in this aspect as four countries from the region are making it to the top ten 2019 rankings.