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Growth of China, India Means Challenge, Opportunity for Global Innovation

by Lauren Pafumi
FLC Washington, DC Office

Speakers from the United States, China and India came together to discuss the implications of China and India's growing importance in global science, technology and innovation.

On September 24 and 25, 2007, the National Academy of Sciences Board on Science, Technology and Economic Policy (STEP) hosted "The Dragon and the Elephant: Understanding the Development of Innovation Capacity in China & India" in Washington, D.C.

Many speakers drew parallels to the launch of Sputnik as its 50th anniversary approached, seeing the rise of China and India as a similar turning point in history. Several expressed the hope that it might galvanize the American population into higher aspirations in science and technology (S&T).

According to Pete Engardio of BusinessWeek, the U.S. is "still catching up with the idea that the world has already changed on us." China is already a major market of producers and consumers. Many speakers predicted its growth would continue for years. India, while smaller in scope, is also increasing its global capacity in S&T.

Several speakers stated that many are trying to answer the wrong questions in addressing the changes China and India have brought to global S&T. Vivek Wadhwa of Duke University presented statistics revealing that, contrary to popular wisdom, there is no shortage of American engineers. Wadhwa's studies showed that employers consider American engineers more qualified than their Chinese and Indian counterparts. Yet Chinese and Indian engineers are increasingly attractive hires due to lower labor costs. Multinational corporations often prefer to train less qualified foreign employees rather than pay the higher salaries Americans expect. Speakers from several multinational corporations described their companies' training programs in Asian countries.

According to several speakers, including those from multinational corporations, Western corporations have often been the force behind these recent gains, but this trend may change as Chinese and Indian scientists and engineers receive training from corporations and move on. The Chinese government has recently increased efforts to promote "indigenous innovation," although it has left the definition of that phrase ambiguous.

Overall, panelists dismissed the possibility of conflict breaking out as balances shift, but some still anticipate a difficult transition. "We are moving toward an energy-constrained world," said Marco Di Capua of the Department of Energy. "We're in for a couple of rocky years."

Several speakers pointed out U.S. intellectual property restrictions and visa policies as barriers to continued American relevance. Visa restrictions have caused even U.S.-based corporations to move high-level meetings overseas, which Di Capua calls "very distressing." Wadhwa anticipates "a pretty sizeable brain drain," with many skilled workers "stuck in immigration limbo." Even for this National Academy of Sciences conference, some foreign speakers were originally denied visas. Several speakers called for a revision of the U.S. patent system, saying it did not promote innovation.

The U.S. has the opportunity to lead, even in a changed system, said Denis Simon of SUNY's Levin Graduate Institute. Increased international cooperation could help solve pressing global problems like pollution and a looming energy crisis.

Kuan Wang of the National Institutes of Health discussed an unexpected opportunity for collaboration that has risen out of China's increased global presence. His lab works with Chinese scientists to combine Western and Chinese traditional medicine.

According to Kuan, collaborating with foreign labs is no more difficult than working with a university. However, several speakers noted that cultural differences and a lack of trust between governments can impede cooperation leading to difficulties associated with international collaborations.

Differences in patent systems can also cause problems. Soonhee Jang of Eli Lilly said Chinese patents are easy to get but unenforceable, while in India, "you can't get a patent, so there's nothing to enforce."

Charles Cooney of the Massachusetts Institute of Technology posed a question that seems to strike the heart of the discussion: "What will the world look like in 2020?" Although none could predict a complete answer, each panelist had a different piece of this puzzle to fill in.

All concluded that China and India's recent growth are changing the global field of science and technology. These changes, panelists agreed, are crucial to recognize.

They provide both great challenge and great opportunity for scientists, governments, companies, and individuals around the world.

The key is to recognize that the changes are already happening — according to some, faster than we think — and that responding to those changes is necessary to fit into the world of 2020.