June 30, 2012
By V. Ganesh
The results of a KPMG survey indicate that China will most likely surpass India and the US to become the world’s innovation hub.
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The study, titled Global Technology Innovation Survey and carried out by KPMG US between March and May 2012, put the question to 668 business executives globally, in start-ups, mid-size and large enterprises, venture capital firms and angel investors, all of whose organisations are centred around technology. They were asked to predict disruptive technology breakthroughs and the scope of change in the next 2-4 years.
Of the respondents, 25% were from the US, 14% from China and 9% from Israel.
Almost 30% of the respondents said China and the US show promise for disruptive breakthroughs that will have a global impact, while only 13% cited India.
Interestingly, 71% pointed to China as the region with the maximum technology impact while the US found favour with only 39% of the respondents.
Of the respondents, 44% forsee America’s tech hub shifting away from Silicon Valley in the next four years, while 23% found this unlikely. The remaining 34% were undecided. Of the respondents who believed in this shift, 44% said it would move to China.
“The pace of technology innovations today is happening at an unparalleled speed and China’s projected rapid rise to prominence as a technology leader would be another example of this,” said Gary Matuszak, Partner, Global Chair and US leader for KPMG’s Technology, Media and Telecommunications practice.
“China’s anticipated parity with the US tech sector shows the significant challenge facing the US to retain its position as an innovation leader,” he added.
Total global spending on R&D is anticipated to increase 3.6% to $1.2 trillion, according to Battelle Memorial Institute and R&D Magazine. As a percentage of global R&D spending, the US contributes 34% and China 12.9%. India contributes a mere 3%.
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