BENGALURU, India The focus of global R&D is shifting from the U.S. to India and China, according to a new study.
The study by the Battelle Memorial Institute (Columbus, Ohio) and released Monday (Oct. 15) found that American dominance of global R&D could begin to wane in the next decade. The report said R&D activities will eventually be divided equally among the U.S., the European Union, China and India in terms of funds and activities.
The Battelle report 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.
According to the R&D report for 2008, there is growing equalization of R&D activity occurring in parallel with declining U.S. dominance, with outsourcing and offshoring growing in significance.
"The U.S. 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 Asia - dominated by China and India - holding approximately equal shares," the report concluded.
In addition, outsourcing and offshoring of R&D is increasing, with the U.S. leading the trend. Conversely, the EU and Asia are increasingly offshoring R&D to the U.S. in order to be in a better position to enhance their market shares. Indeed, the U.S. is 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.