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Study: U.S. loses global R&D dominance

Posted: 18 Oct 2007 ?? ?Print Version ?Bookmark and Share

Keywords:global R&D? India R&D? offshoring?

A new study by the Battelle Memorial Institute found that American dominance of global R&D could begin to wane in the next decade as the focus shifts to India and China.

According to the report, R&D activities will eventually be divided equally among the U.S., the European Union, China and India in terms of funds and activities. It also found that a shift will occur not only in terms of investments but also in terms of the R&D enterprise itself and the complex interplay between funders and researchers.

The R&D report for 2008 also stated that there is growing equalization of R&D activity occurring in parallel with declining U.S. dominance, with outsourcing and offshoring growing in significance.

"The United States will continue to dominate for up to the next 10 years or so, but after that decade activity is likely to be split into thirds with North America, the European Union and Asiadominated by China and Indiaholding approximately equal shares," the report concluded.

In addition, outsourcing and offshoring of R&D is increasing, with the United States leading the trend. Conversely, the European Union and Asia are increasingly offshoring R&D to the United States in order to be in a better position to enhance their market shares. United States is then benefiting from the continued in-sourcing of R&D.

"The globalization of R&D will continue to grow, and competition for research funds will become more intense," said Jules Duga, a senior researcher at Battelle.

- K.C. Krishnadas
EE Times

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