China Is Overtaking the United States in Innovation Capacity

[Imrul Hasan Tusher]

China Is Overtaking the United States in Innovation Capacity

KEY TAKEAWAYS

1. China is positioned to evolve from an imitator to an innovator, following a path blazed by its Asian Tiger neighbors. It has already shown itself capable of leading the world in a number of advanced technologies such as supercomputers and high-speed rail.

2. China’s potential for innovation threatens the market share of the United States and allied nations in high-value-added, advanced industries, which are important to U.S. prosperity and security.

3. In 2010, China’s innovation and advanced-industry capabilities were approximately 58 percent of U.S. capabilities on a proportional basis (accounting for size of its economy, population, etc.) and 78 percent of U.S. output in absolute terms.

4. By 2020, China’s innovation and advanced-industry capabilities increased to roughly 75 percent of U.S. capabilities on a proportional basis and 139 percent in absolute terms.

5. China made notable progress in most of the innovation indicators the Information Technology and Innovation Foundation (ITIF) examined and in each indicator group, with its greatest progress coming in innovation outputs.

6. China still faces economic challenges. But its progress in a wide range of innovation indicators suggests that it is on the path to overtake the United States in innovation and advanced-industry output—in both proportional and absolute terms.

Please see the attachments for full papers: China Innovation Capacity 2023

Source: https://itif.org/publications/2023/01/23/wake-up-america-china-is-overtaking-the-united-states-in-innovation-capacity/?mc_cid=e8e0552904&mc_eid=b61832c89d

[shibli]

For China to beat the U.S. in innovation, they need to keep investing in research, support entrepreneurs, protect intellectual property, improve education, and attract talent. Working with other countries and keeping markets open could also help. But predicting the future is tricky because things like global politics and the global economy can impact how things unfold.

[shibli]

Global collaboration and open markets could play a role in fostering innovation in which China is very conservative. However, geopolitical and economic factors can influence these dynamics, making it difficult to provide a final prediction.

[Nurul Mohammad Zayed]

It is quite inevitable with the emerging concepts of crypto currency though it might take few more years to take over. I addressed this issue a bit in my PhD Thesis. I had a few publications on this issue as well. Please go through as per your convenience.

1. Zayed, N. M., Kamruzzaman, M., Mumu, F. E., Hasan, K. B. M. R. & Islam, S. (2019). Strategic Evaluation of Macroeconomic Performance of USA: 1929-2008. Academy of Strategic Management Journal (ASMJ) [on line], 18(5), pp. 1-5. [Available from: https://www.abacademies.org/articles/Strategic-evaluation-of-macroeconomic-performance-of-usa-1929-2008-1939-6104-18-4-423.pdf]  – Scopus (Q2) & SCIMAGO Indexed.

2. Zayed, N. M., Kamruzzaman, M., Chowdhury, S., Tasneem, S. & Islam, M. S. (2019). A Strategic Analysis of Patterns of Growth in Advanced Countries during 1870-2006. Academy of Strategic Management Journal (ASMJ) [on line], 18(4), pp. 1-6. [Available from: https://www.abacademies.org/articles/A-Strategic-Analysis-of-Patterns-of-Growth-in-Advanced-Countries-during-1870-2006-%20-1939-6104-18-4-411.pdf] – Scopus (Q2) & SCIMAGO Indexed.

[bipasha]

It is very hard to think the future of either the U.S. or Chinese economy. Sudden shifts in geopolitics or breakthroughs in technology may change the situation.China's struggles to revive growth and shore up its crisis-laden property market this year mean it's unlikely to ever permanently take the US's crown as the world's largest economy, one recent forecast says.(Source:Sep 5, 2023)
Reports say that China's gross domestic output would not surpass that of the US until the middle of the 2040s, and even then, it won't be by much before “falling behind” at that point.(Source:Sep 5, 2023, internet)