Globalization of Science and Engineering Research

'Science and Engineering Indicators 2010 provides clear evidence that science and engineering (S&E) research is becoming an increasingly international endeavor. S&E activities are occurring and intensifying in more regions and economies, largely in response to recognition by governments that S&E research and development (R&D) leads to economic growth, employment, and overall social well-being of their citizens. Figure 1 illustrates the changes in percentage of worldwide R&D expenditures (combined public and private) by geographical location over the last decade. While total worldwide expenditures have increased about seven percent per year on average, the percent growth in the Asia/Pacific region has outpaced this average, with most of the increase coming from China, India and other developing nations.

"Overall international growth in S&E research activity is driven by increasing science and technology (S&T) capacity in economies around the world. There is widespread recognition of the need to move to a knowledge-intensive economy. Governments increasingly acknowledge the role of S&T in generating new jobs, economic prosperity, responses to national issues and/or global challenges, and global competitiveness. As a result, they are focusing on S&T as national priorities (e.g., by crafting strategic plans for S&T and integrating them in their long-range economic policies) and investing government funding in S&T infrastructure (e.g., in S&E research, education, facilities, R&D, and open markets, and frequently imposing conditions favoring their national enterprise). At the same time, the private sectors in many countries are enhancing and growing their international commercial presence as well as their research and development capabilities. The growth of S&T capacity around the world is facilitated by multinational corporate investments in R&D and new foreign direct investment in emerging markets, as well as by expanding international access to R&D knowledge, training, and facilities. There are growing international research investments by the private sectors of many countries, all enabled and enhanced through the opportunities for scientific exchange provided by revolutionary advances in information and communications technologies (ICT)."

This report, a companion to the NSF Science and Engineering Indicators 2010, indicates that the global R&D enterprise is growing rapidly, especially due to the emphasis that is being given to R&D in Asia and other developing regions. I note especially:

"Between 1995 and 2008, the U.S. share of worldwide high technology exports declined from 21 percent to 14 percent. Over the same period, Japan's export share of high technology manufactured goods declined from 18 percent to 8 percent, and the EU maintained its 16 percent to 18 percent share over the period. It is interesting to note that the U.S. share of high technology exports value added remained relatively flat (Figure 4)—though revenues increased as the global total grew—while the U.S. exports of these items declined substantially (Figure 5). One possible explanation for this is that the globalization of the manufacturing process (i.e., intellectual property creation—innovation, design, prototyping, etc.) in one country can be part of a process in which fabrication takes place in a second country and the sale to a third country. Therefore, while the documented revenue transaction is between the first and third countries, the export is from the second country to the third."