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Wednesday, December 15, 2010

2011 Global R&D Funding Forecast

Forecast released by R&D Magazine. The global R&D total for 2011 will be $1.2 trillion as stability returns and globalization narrows the R&D gap between countries. China has overtaken Japan as the world’s second-highest R&D funder, but despite a lower-than-average predicted 2011 R&D funding growth rate at just 2.4%, the United States still leads all countries by funding one-third of global R&D. US is expected to spend about 405 $ billion, Japan 144$ billion, China 153$billion and India 36$ billion. India spends more than Canada, Taiwan, Australia, Sweden, Finland, Israel  etc . In Pharma development, US lead with 71% budget, followed by Germany (10%), China (4%) and UK (1%).

While setting goals for the past several years to increase its R&D to GDP ratio to more than 1%, its actual performance has seen a stable ratio over the past several years at 0.9%. Of this spending, 0.61% is attributable to government R&D investments, which have been increasing over the past several years. Industrial investments in Indian R&D have risen 10% over the same period. The current total target for R&D as a share of GDP is 1.2% by 2012. Also, India graduates almost twice as many college graduates each year as China. But only 2% to 5% of those graduates have basic vocational skills, compared with 96% in Korea, 75% in Germany and 68% in the U.S., according to Indian government reports. Similarly, only about 25% of the engineers graduated in India have the language skills, practical knowledge and cultural attitudes to work for multinational companies.
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1 comment:

Briang said...

Great post, these concrete numbers are very important in tracking R&D spending. I am surprised how quickly India's R&D spending grew from 1980's.
Thanks for the post!

Dr. Brian Glassman
Ph.D. in Innovation Management
Get great articles on innovation at the International Journal of Innovation Science.