PPI: Asia Spends More on Research than Europe

Asia Spends More on Research than Europe
Progressive Policy Institute, January 21, 2009

The Numbers:

Spending on scientific research & development, 2007:
- North America: ~ $393 billion
- Europe: ~ $290 billion
- Asia: ~ $320 billion


What They Mean:

India's medieval mathematicians invented the zero and modern numerals around 500 AD. Engineers in neighboring China dreamed up paper, explosives, the compass, and movable type. But the 17th-century Scientific Revolution came not in Asia but the west, and so did the 20th century's medicines, airplanes, radio, computers, spacecraft, TV sets, and telecom gear.
Why? Albert Einstein, wondering about the issue in 1922, blamed Asia's high populations and low labor costs for slowing invention. ("In both India and China the low price of labor has stood in the way of the development of machinery.") A half-century later, British history-of-Chinese-science master Joseph Needham speculated that Europe had jumped ahead by inventing capitalism, which meant competition among businesses for customers and therefore innovation. The question remains interesting -- but only in an historical sense, because Asian science has roared back to life.

Asia's most sophisticated economies have been among the world's heaviest researchers for years. Japan's $130 billion in R&D spending amounted to 3.2 percent of Japanese GDP, far above the rich world's 2.1 percent average and topped only by Israel and Sweden. (The United States was at 2.7 percent, Australia 2.2 percent, Canada 2.0 percent, and Europe 1.7 percent.) Korea's $38 billion in research spending outstripped Britain's $35 billion, and made up 3.0 percent of GDP. Taiwan and Singapore are also well above the world's rich-country average.

Science is reviving in the two giants as well. Chinese research spending, relative to GDP, has doubled in a decade from 0.8 percent to 1.5 percent. In dollar terms, China's $85 billion spending ranks third or fourth in the world (depending on exchange rates), roughly at par with Germany. India's science spending is about $24 billion and about 0.8 percent of GDP. And within the last three or four years -- likely for the first time in four centuries -- Asia's research spending topped Europe's. The United States still tops the world, at $370 billion to Asia's $320 billion and Europe's $290 billion ... but for how long?


Further Reading:

Is Asia inventing, or just spending? In 1980, according to the U.S. Patent and Trademark Office, European researchers filed twice as many U.S. patent applications as Asians. By 2007, Japan's 79,000 applications alone outnumbered the 69,000 from all European countries combined, and Asia's total nearly doubled Europe. Korea's 23,000 applications were barely behind Germany's second-place 23,600; Taiwan, with 18,500, was above both Britain and France. India and China still file fewer patents than the top-tier Asian technological economies and the big European states, but are rising fast. Chinese and Indian researchers accounted for 30 patent applications in 1980, 900 in 2000, and 5,300 in 2007. The PTO patent records: http://www.uspto.gov/web/offices/ac/ido/oeip/taf/appl_yr.pdf


Science in Asia links:

Tokyo-based Asia Science and Technology Seminar trains young Asian scientists:http://www.jistec.or.jp/ASTS/asts_e.html

Indian Prime Minister Manmohan Singh speaks to the Science Congress in Shillong on India's high-tech future:http://pib.nic.in/release/release.asp?relid=46369

The Robotic Association of Japan insists that soft, weak, vulnerable humans have nothing to fear from its metallic, computerized and remorseless creations:http://www.rsj.or.jp/index_e.html

Korea's Ministry of Knowledge Economy (until last year the Min. of Commerce & Industry), perhaps missing the real threat, proposes an ethics charter meant to prevent human abuse of androids:http://www.korea.net/news/news/newsView.asp?part=100&serial_no=20080228018

China's Science and Technology Ministry:http://www.most.gov.cn/eng/

Taiwan's National Science Council announces bio-tech parks, cryptography, license-plate recognition, and more:http://web1.nsc.gov.tw/mp.aspx?mp=7 ASEAN's Science and Technology Network:http://www.astnet.org/

And San Diego's school system instructs America's youth on classical Chinese technology:
www.sdcoe.k12.ca.us/score/chinin/chinintg.htm


R&D around the world:

High end -- Israel is the world's most science-intensive economy, devoting 4.7 percent of GDP to R&D. Sweden is next at 3.7 percent, followed by Japan and Finland at 3.4 percent. South Korea ranks fifth 3.2 percent, with Switzerland sixth. Japan's commitment has risen from 2.0 percent in 1980, and 2.7 percent in the mid-1990s. America's 2.7 percent remains high on international rankings, but -- in contrast to Asian economies -- has not grown since the mid-1980s. American businesses spend heavily on R&D, and U.S. government investment in life sciences and medicine is high. The lag comes from low public funding for research on physics, aerospace, chemistry, and other hard sciences. The National Science Foundation has data on American research spending and other science matters over time:http://www.nsf.gov/statistics/infbrief/nsf08317/
And the OECD counts research totals by country for its members plus Argentina, China, Israel, the EU, Singapore, Slovenia, South Africa, Romania, Russia, and Taiwan:
http://www.oecd.org/dataoecd/9/44/41850733.pdf

Can do better -- The luminaries of European science would not be pleased. Galileo would blush to see Italy's low 1.1 percent of GDP; Archimedes would likewise fume to see Greece spending only 0.6 percent. Newton would be startled to learn that Korea spends more on research than Britain. (The U.K. government research budget is high, but British companies apparently do less research than some of their rivals.) Copernicus might feel worst of all, with Poland the only advanced country to have cut its R&D budgets in this decade. The highest research commitments are in Scandinavia and Germany. The European Science Agency:
http://sci.esa.int/science-e/www/area/index.cfm?fareaid=1

Developing world -- Latin America, the Middle East apart from Israel, Africa, and Southeast Asia are well behind East Asia as research powers. The World Bank's 2008 Development Indicators book finds the Latin average at 0.6 percent, led by Brazil's 0.9 percent. Tunisia is the Muslim world's most research-intensive state at 1.0 percent of GDP, followed by Malaysia, Morocco, and Turkey at 0.7 percent; Uganda's 0.8 percent and South Africa 0.9 percent are Africa's highest rates. Singapore tops Southeast Asia at a rich-world 2.3 percent, but larger ASEAN members could be doing more: the Philippines and Indonesia are at 0.1 percent, Thailand 0.3 percent and Vietnam 0.2 percent. Brazil's 0.9 percent is Latin America's highest rate, with Chile, Argentina, and Mexico next at 0.5 percent.