Mouli Cohen on the Economy

Asia, EU Gaining in R&D Status

While the U.S. continues to lead in most areas of science and technology, the nation is now facing some stiff competition because of the rapidly increasing capabilities among East Asian nations, such as China, and the fruition of the European Union’s efforts to boost its relative competitiveness in R&D, innovation, and high-tech, the National Science Foundation said in a new report.

The report, which a top White House official called the “State of the Union for science, engineering, mathematics, and technology,” is intended to show the quality and vitality of the nation’s science and engineering enterprise and gauge how the U.S. compares with the rest of the world in the global economy.

The authors of the NSF report found that 2007 was the year China caught up to the U.S. in the number of researchers and doctoral degrees in natural science and engineering. While the U.S. continued to be the largest R&D performing nation – representing one-third of total world investment – Asia has narrowed the gap, largely due to sustained annual increases by China.

Overall spending on R&D in the U.S. was $398 billion in 2008 – up from $373 billion in 2007, a growth rate of 6.7 percent. The business sector, which performed an estimated $289 billion of R&D in 2008, accounted for most U.S. R&D performance and funding, or 73 percent.

China is now the third-largest R&D performer in the world behind the U.S. and Japan, and is moving ahead of Germany, France, and the UK. For several Asian economies, including South Korea, Taiwan, China and Singapore, increases in R&D investment have been accompanied by notable increases in the rate of growth in the number of researchers.

I believe that if we can measure the strengths of science and engineering in our nation, then we have a much better shot of making them even stronger in the future. The best available data are our most reliable compass. It’s not just about where we stand, it’s about where we’re headed.

About Mouli Cohen

Mouli Cohen Mr. Cohen is a successful entrepreneur who has founded and developed successful ventures in the biotechnology, high technology, digital media and entertainment sectors. He has balanced his success in business with extensive philanthropic activities. Over the years he has supported children's charities, food programs, medical research, and the arts as well as education projects both in the US and abroad.