Study shows U.S. losing edge in innovation

Some argue that the United States ' global primacy depends in part on its ability to develop new technologies and industries faster than anyone else. For the last five decades, U.S. scientific innovation and technological entrepreneurship have ensured the country ' s economic prosperity and military power.

Today, however, this technological edge - so long taken for granted - may be slipping, and one of the more serious challenges, according to Public Policy professor Diana Hicks, is coming from Asia.

Hicks, who has recently presented findings on the topic of the U.S. ' s role in innovation, said, " We see that while fewer U.S. citizens study for science and engineering Ph.D. ' s, the growth in foreign students studying here has leveled off. "

She suggested that this may be connected to the growth in other countries. Part of Hicks ' research examines indicators that demonstrate the determination of Asian policymakers to strengthen their R & D systems and knowledge economies. According to Hicks, Asian countries have rapidly built their science and technological capabilities.

Over the past few years, the U.S. has witnessed a 19 percent decline in the number of Asian students pursuing doctoral degrees while many foreign governments have been strengthening their educational and research programs.

China, South Korea and Taiwan increased gross R & D spending by about 140 percent, while the U.S increased its investments by only 34 percent. Finally, the U.S. ' s share of scientific papers published worldwide fell from 38 percent in 1988 to 31 percent in 2001, while European and Asian papers have been on the upswing.

These are just some of the facts that seem to allude that the United States, a global leader in innovation is now facing stiff competition for resources and recognition.

Through competitive tax policies, increased investment in research and development and preferential policies for science and engineering personnel, Asian governments are improving the quality of their science.

Outsourcing R & D

Outsourcing R & D has become a cost-cutting measure now practiced by many companies. By doing this, corporations can freeze a portion of their R & D budgets while growing their product offerings.

Even R & D powerhouses such as IBM, HP and Motorola have frozen or even reduced their R & D budgets since 2000.

Cost cutting is not the only reason why corporations prefer to outsource their R & D.

" Engineering is a huge part of the economy...[it ' s] a political argument that could be used to get support out of Washington for engineering research, as engineering supports the bulk of economic activity in this country, " Hicks said.

What we now have are the following indicators: increased R & D spending by Asian countries compared to the U.S., fewer doctoral degrees being pursued by both Asian and U.S. citizens in the U.S., a trend to export resources and personnel to Asia and a faster growth of scientific publications in Asia and Europe compared to the U.S.

An Air of Complacency

Another part of the problem stems from the lack of awareness among the U.S. population, many of whom believe that the U.S. has always been the leader in science and technology and can afford to turn a deaf ear to the developments in Asia and Europe.

" The U.S. is very complacent, " Hicks said, adding that there are " several layers of complacency " that contribute to the population ' s lack of awareness.

" There ' s a bigger issue of us in the U.S. which is a lack of sensibility about global issues and global needs and cultures. We have been fairly isolated until just recently and maybe 9/11 was part of the problem, " said David Sutherland, a visiting professor in the College of Management and CEO of the Business Innovation Consortium. " We have not been a globally-oriented country and a large percentage of the population has very little idea as to what goes on in other countries. "

" The U.S. has basically [gotten] fat, happy and lazy...people aspire to be professional athletes or music stars, " said Robbie Ludlow, an MBA candidate in the College of Management. " We have had a monopoly on the economy; we ' re very wealthy and we have lost our motivation. "

Sutherland emphasized that creating more motivation and awareness was imperative.

" If we don ' t create more sensibility about global issues, the global economy will be overtaken. Others have it - if we look at China, India, they are beginning to understand and develop their position in a global economy, " Sutherland said.

" First is our awareness of what ' s possible in a global economy, " he said. " Second is our intellectual capability - if we don ' t develop or even maintain what we currently have in terms of intellectual capability, we will be overtaken. "

Innovation at Tech

So what does this mean to students at Tech? Should we feel obligated to pursue higher degrees? What is Georgia Tech doing to support innovation?

" Georgia Tech is revamping its international emphasis, like its new program in Singapore, " Hicks said. " It is preparing its students for the future, as people take advantage of these opportunities to develop both technical and cross cultural skills. "

In addition, Hicks said, " Wayne Clough is a leader in the Council of Competitiveness National Innovative Initiative, and his recent report addresses what can be done to keep our nation at the innovative frontier. "

The United States is still the most innovative nation in the world. But will the United States own the technology of the future? " Probably not all of it, " Hicks said. " We will have to compete even harder just to maintain our current position. "