This document provides a comparative study of research and development (R&D) management trends in the US, India, and China. It notes that globalization and outsourcing are impacting the R&D sector, with high-tech R&D now being conducted in Asian countries. The document uses a trend model to examine factors like R&D spending, innovation rankings, market drivers for offshoring R&D, and the R&D management approaches of each country. Key differences highlighted include higher R&D spending as a percentage of GDP in the US compared to India and China.

1. TRENDS IN R&D MANAGEMENT
COMPARATIVE STUDY OF –
INDIA, CHINA VS. USA
Ashok Bhatla - MS, PMP –
Technology Consultant
ASHOK.BHATLA.WRITER@GMAIL.C
OM

2. Overview

High Tech R&D is the main component of a nation’s innovation and
competitiveness.

Globalization and Outsourcing which started in the manufacturing
sector is now impacting the R&D sector also.

Even high Tech R&D is being conducted in Asian countries

So what are the market drivers for setting up a R&D facility to
another location.

This paper uses a simple Trending Model to compare the R&D
Management in US vs emerging economies of India and China

3. Some interesting Info

China overtook Japan to become the world’s 2 nd largest economy.

“Five years from now, you’ll see some leading technology being developed
first in India or China, and flowing back to the West.”

“It is difficult for researchers in Palo Alto or Cupertino to imagine a need for
a keyboard for India’s 23 different languages.”

China will have more Ph.D.s in 2010 as compared to US.

All major MNC’s like Microsoft, Cisco, Siemens, GE have their Research
operations in India.

World’s cheapest 2000 dollar car designed and developed by Tata Motors in
India

4. INNOVATION RANKINGS
World Economic Forum Report

5. MARKET DRIVERS FOR GLOBALIZATION OF R&D
Gain entry
into foreign
markets
Collaboration
with local
manufacturing
companies
Market
Drivers for
Globalization
of R&D
Shortage of
engineers and
scientists in
Western nations
Tax incentives
and other
subsidies

6. R&D MANAGEMENT IN US
World’s leading R&D workshop – Plasma Displays, I Phones

Creativity, Entrepreneurship and University, Industry, Govt
trio

Average R&D Spending as % of GDP has been around 2.5%

33 national labs NASA, NSF, Los Almos, Sandia

US share of global R&D varied between 35 to 40 % from 1996
to 2005


7. R&D MANAGEMENT IN INDIA
Majority of old R&D efforts concentrated in Defense and Space Research

In 21st century, many MNCs opened their development centers in India –
concentrating in the field of software, telecom and pharmaceuticals

Microsoft, Cisco, Eli Lily, Google are some examples

Infrastructure is still an issue. India spends less than 1% of GDP on R&D –
while Western countries spend an average of 3 %

Although lots of FDI in the Research sector, collaboration between
Universities and Industries is missing.

On average, no. of Researchers per million inhabitants has remained flat in
India. (may be due to huge population growth)


8. R&D MANAGEMENT IN CHINA
As China is world’s manufacturing workshop and the largest market,
Companies want to setup R&D next to the production.

Huge growth in R&D spending from 0.6 % to 1.4 % in the last
decade. Investments by Govt in all levels of the system

Infrastructure is improving. Employee Creativity is an issue. IP
Protection is another cause of concern.

More Ph.D. than US in 2010

China’s global share of R&D increased from 2 % to 7.5 % from 1996
to 2005
