ECONOMIC HIGHLIGHTS

New Delhi, 14 February 2008

Research Holds Key

CHINA TO OVERTAKE AMERICA

By Dr. Vinod Mehta

(Former Director, Research, ICSSR)

China is being billed to replace the US as a powerhouse of scientific research and development of new technologies in the coming years. As acknowledged by even the Americans.  A new study of worldwide technological competitiveness in the US suggests that “China may soon rival the US as the principal driver of the world's economy - a position the U.S. has held since the end of World War II. If that happens, it will mark the first time in nearly a century that two nations have competed for leadership as equals.”

Thus China will overtake the US in the critical ability to develop basic science and technology, turn these developments into products and services and then market them to the world. “Though China is often seen as just a low-cost producer of manufactured goods, the new ‘High Tech Indicators’ study done by researchers at the Georgia Institute of Technology clearly shows that the Asian powerhouse has much bigger aspirations.”

The US researchers have also noted that in 2007 China had a technological standing of 82.8, compared to 76.1 for the US, 66.8 for Germany and 66.0 for Japan. Just 11 years ago, China's score was only 22.5. The US peaked in 1999 with a score of 95.4.

Again, Israel, a nation of just 6 million people, is also fast becoming a world leader in high technology. With 135 engineers per 100,000 people, it has the highest number of engineers per capita in the world, a proportion double that of the US. Numerous American and Silicon Valley firms have set up research and development facilities in Israel like Microsoft, Intel, Hewlett-Packard, Sun Microsystems and IBM. And the country, home to some 2,000 technology start-up companies - has the world's greatest concentration of such firms outside of Silicon Valley.

Where does India stand in terms of scientific research and development of technologies?  We are a nation of one billion plus and one of the fastest growing economies. Can we sustain this growth rate without scientific research and development of new technologies?  Some of our business houses are taking over businesses in other countries including developed countries but what do we have to contribute to technological innovation of these businesses?

Frankly, speaking except for a few areas like space we are duds as far as scientific research and development of new technologies are concerned.  We have spent large funds over the years on developing a main battle tank and a light combat aircraft and yet we are still nowhere. 

Given the situation in our neighbourhood, our defence preparedness requires that we are battle ready with the latest technologies. Sadly, since we are unable to develop critical technologies the country is spending huge sums on importing defence equipments.  If we were to make these equipments with our own technologies we would not only be generating jobs in the manufacturing sector but also saving a lot of money.

India has one of the largest railways networks in the world but the country is dependent upon nations like France and South Korea for reliable signaling system, on Germany for designing of ultra modern passenger coaches. This is true of many other areas like machinery for the manufacturing and the construction sectors.  Yes, India is way ahead in the development of IT software but we cannot design and manufacture a pen drive or flash cards for use in the computers, digital cameras and mobile phones. Scandalously, all these are being imported from China!

Sometimes while purchasing equipments from foreign companies the powers-that-be insist on the transfer of technology. But in most cases, the so-called transfer of technology is a mere eyewash. No country or foreign company which has spent millions or perhaps billions of dollars on scientific research and perfecting technologies is going to transfer it to India. And why should they?

If India wishes to be counted among nations like the US, Russia, UK, France, Germany, Japan, South Korea and China it has no option but to rely on its own basic and applied scientific researches. It needs continuous development and perfecting of new technologies in every field be it defence, space, industry or agriculture. To achieve this we have to attract talent and reward them handsomely.  At times even hire foreign talent for critical technology.

Remember, what set the US apart from other countries as an economic power after World War 1 was its scientific research and the technologies it developed and used in various fields like space, defence, medicine, industry, agriculture et al. The strong point of European countries particularly UK, France and Germany along with Japan too was the same.

However, the Soviet Union directed all its energies to develop defence and space technologies, given the Cold War Era. And, Long after World War II, South Korea concentrated on scientific research and development of new technologies and today stands close to Japan in terms of research and technology in the industrial sector. Israel, like the Soviets, has concentrated on defence technologies. Except for the US and erstwhile Soviet Union most of the other countries are smaller or much smaller in size than India.

However, unlike India, where researchers are paid peanuts, other countries reward their researchers handsomely. In the Soviet Union scientists engaged in defence and space research are paid salaries and perks which are much higher than the salaries and perks of the Politburo members. In the US those engaged in scientific research are not only highly paid but it faces no problem in hiring the best foreign researchers.  However, post 9/11 hiring of foreign scientists has become strict leading to the US losing ground to other countries in the development of new technologies.

On the heels of the US, China too is following suit. It is single-mindedly concentrating on training scientists and engineers who conduct researches needed to maintain the country’s technological competitiveness. And if China persists as it will, India by comparison will become a weak economy.

Clearly, if the country has to maintain its growth rate at around 10 per cent to be counted as a developed nation and stand up to others, we must strengthen our research base, develop our own technologies and stop looking up to other nations for joint researches or transfer of technology.  Attract talent and reward them handsomely.  There is no short cut to this. ---- INFA

(Copyright, India News & Feature Alliance)