Comparison of China and India in R&D Globalization UK-China Innovation Workshop for Sustainable and Equitable Development March 19, 2010, Tsinghua University Dr. Liang Zheng China Institute for Science&Technology Policy (CISTP) School of Public Pol icy and Management (SPPM) Tsinghua Universtiy liangzheng@tsinghua. edu.cn
28
Embed
LIANG Zheng: Comparison of China and India in R&D globalisation
LIANG Zheng, Associate Professor, CISTP, Tsinghua University.
Presentation to the UK-China Innovation Workshop for Sustainable and Equitable Development, Tsinghua University, 19 March 2010, co-organised by China Institute for Science and Technology Policy (CISTP) at Tsinghua University and the STEPS Centre.
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
Comparison of China and India in R&D Globalization
UK-China Innovation Workshop for Sustainable and Equitable Development
March 19, 2010, Tsinghua University
Dr. Liang Zheng China Institute for Science&Technology Policy (CISTP) School of Public Policy and Management (SPPM) Tsinghua Universtiy [email protected]
Outline
Globalization of R&D: New Trends FDI Inflows and Outflows R&D Inflows R&D Outputs in Global OFDI and R&D Outflows Conclusions
I. Globalization of R&D: New Trends
Top 15 locations for R&D by the world’s largest R&D spenders in the UNCTAD survey, 2004-2005
(per cent of respondents)
Source: World Investment Report 2005
Most R&D is performed in industrialized countries, but a number of developing ones now also host MNC R&D.
More than half of the top R&D spenders already have R&D facilities in China, India or Singapore.
8.8
8.8
11.8
13.2
13.2
14.7
17.6
19.1
19.1
25.0
29.4
35.3
35.3
47.1
58.8
0 10 20 30 40 50 60
Switzerland
Sweden
Belgium
Spain
Brazil
Italy
Singapore
Germany
Canada
India
Japan
France
China
United Kingdom
United States
Among the developing world, Asia is the preferred destination. Some examples:
The share of developing Asia in United States MNCs' overseas R&D rose from 3% in 1994 to 10% in 2002.
More than half of the top R&D spenders have R&D activities in China, India or Singapore.
More than 700 foreign-owned R&D centres in China(2005).
More than 100 MNCs conduct R&D in India and in Singapore.
Developing Asia now accounts for 30% of global semiconductor design.
Source: World Investment Report 2005
Most attractive prospective R&D locations in the UNCTAD survey, 2005-
2009(per cent of respondents)
Source: World Investment Report 2005
Further shift towards some developing countries, mainly in Asia, and in Russia is expected.
Few respondents plan to expand R&D in Latin America or Africa.
2.9
2.9
2.9
2.9
2.9
4.4
4.4
4.4
4.4
5.9
8.8
10.3
13.2
14.7
29.4
41.2
61.8
0 10 20 30 40 50 60
Thailand
Republic of Korea
Malaysia
Italy
Belgium
Taiwan Province of China
Singapore
Canada
The Netherlands
Germany
France
Russian Federation
United Kingdom
Japan
India
United States
China
China and India become the“hot-spot”
Source: Booz & Company analysis (2008)
Ⅱ. FDI Inflows and Outflows
0
10
20
30
40
50
60
70
1990 1995 2000 2005
FDI Inflows to China (billion USD)
FDI Stocks in selected countries
Source: MOFCOM FDI Statistics, OECD
0 20 40 60
UK
Canada
China
France
Germany
US
Korea
India
Japan
Outward
Inward
% of GDP
FDI from and to India, 2000-01 to 2007-08 (in Millions of US $)
Source: Sunil, 2009
Ⅲ. R&D InflowsThe Growth of Foreign R&D Centers in India and China
Year Number
1985 3
1995 19
1999 49
2000 64
2005 145
2006-07 200*
Growth of Foreign R&D Centres in India Growth of Foreign R&D Centres in China
Source: TIFAC Survey and CSSP/JNU Data base.
Source: MOFCOM Statistics
Year Number
2001 124
2002 100
2003 400
2004 700
2005.8 750
2006.10 980
2007 1160
2008 1200
2009.7 1250
The location distributions of foreign R&D centers in India and China
Location of Foreign R&D Centres in India
The regional distribution of the R&D organizations settled by Business1000 MNCs in China ( 2004 )
Source: TIFAC Survey (2006).
Source: Xue and Liang(2008)
Region No of Centres
Bangalore 45
Hyderabad 7
Chennai 4
NCR (Delhi) 22
Pune-Mumbai 17
Other regions 5
Total 100
Regions
Total OrganizationsAutonomous R&D
CentersR&D Units
Number Percent Number Percent Number Percent
Beijing 65 39.2% 51 47.7% 14 23.7%
Shanghai 49 29.5% 35 32.7% 14 23.7%
Tianjin 8 4.8% 2 1.9% 6 10.2%
Guangdong 15 9.0% 8 7.5% 7 11.9%
Jiangsu 14 8.4% 5 4.7% 9 15.3%
Other regions 15 9.0% 6 5.6% 9 15.3%
Total 166 100% 107 100% 59 100%
The Industry distributions of foreign R&D centers in India and China
Major R&D Segment (Target areas of application) Number of Companies Share(%)
Software development (software applications for different sectors, networking tools, multi-media applications, CAD/CAM tools, multimedia tools)
34 25.8
Hardware-computer/telecommunications and embedded tools (chip designing-aerospace/mobile, optical switching systems, broad band system)
19 14.4
Automotive sector (vehicle and component design, embedded control system, safety systems)
14 10.6
Pharmaceuticals (formulations, intermediaries, vaccination, drug discovery)
13 9.8
Agro-chemicals (insecticide, hybrid seeds) 11 8.3
Chemical (coating, basic inorganic chemicals, polymers and synthetic materials, tanning agents, textile chemical)