China Set To Surpass US In R&D Spending In 10 Years

dcblogs writes "China is on track to overtake the U.S. in spending on research and development in about 10 years, as federal R&D spending either declines or remains flat. The U.S. today maintains a large lead in spending over China, with federal and private sector investment expected to reach $424 billion next year, a 1.2% increase. By contrast, China's overall R&D spending is $220 billion next year, an increase of 11.6% over 2012, a rate similar to previous years. This finding is shared by the President's Council of Advisors on Science and Technology. 'China's investment as a percentage of its GDP shows continuing, deliberate growth that, if it continues, should surpass the roughly flat United States investment within a decade,' it said in a report last month."

Re:It's not just money

[blanchae]

They are spending more than twice now if we compare wages. Their $200 billion gets a lot more R&D then the States $400 billion. There is such an inequality in wages in the order of 10 to 1, that I would guess that they are actually getting the equivalent of $2 Trillion in State's R&D.

Re:China

[Kergan]

Well, maybe.

Trouble is, they're building ghost cities [google.com], they build railroads with subpar concrete [nytimes.com] (hint, since it's not explicit in the NYT article: to make proper high speed rail concete you basically need a derivative of volcanic ash, and the amount thereof produced per year is lower than the amount needed to fit the needs of China's yearly consumption, which dwarves the consumption by that of all other countries; in other words, their railway infrastructure's lifespan is roughly 10-20 years, vs 50-100 in developed countries), they need to rebalance [mpettis.com], and so many other things can go wrong...

Re:R&D Stealing

[Runaway1956]

Fantasizing, you say? Whatever. The fact is, the wealth of the world is being redistributed, and the US and EU are coming up losers. China is gaining. The real catch to all this redistribution is, the world's central banks are reaping the lion's share of the profits. For each ten dollars we lose, China gains a dollar, and the banks steal nine dollars.

But, the situation with the central banks don't affect the fact that China is ascending, while we descend.

China may be dependent on us today, but what happens in fifty years, or a hundred? We're selling off our great grandchildren's future.

Re:Can't Compare

[the gnat]

If the talent is better and equal or cheaper in cost then this game is over

I guess the next question is "does this game actually matter?" Germany's population is about the same fraction of the US population as the US is of China, and presumably their R&D budget is much smaller than ours. But you never hear the Germans wailing about how the US has surpassed Germany in R&D spending; indeed, Germany's economy is one of the strongest in the world (especially Europe), with a large manufacturing sector and excellent technology, despite relatively high labor costs. Which doesn't mean that Germany is perfect or doesn't have problems - just that being overtaken in R&D spending doesn't automatically turn you into a third-world country.