Globalization of Materials R&D Time for a National Strategy (2005) / Chapter Skim
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5 Assessing the Impacts of Materials Science and Engineering R&D Globalization
5 Assessing the Impacts of Materials Science and Engineering R&D Globalization
Pages 105-118
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From page 105... ...
5 Assessing the Impacts of Materials Science and Engineering R&D Globalization MSE R&D becomes globalized through a variety of mechanisms: domestic R&D activities, academic exchanges, international trade,1 and foreign direct investment, as well as associated spillovers.2 All the evidence indicates globalization of MSE R&D is well under way, so the question is how the United States should react to this phenomenon. Responding to this question requires an understanding of the possible impacts of the phenomenon.3 ECONOMIC IMPACT Background Assessing the economic impact of MSE R&D globalization is a challenging task given the complexity of the economic forces driving globalization and the inherent uncertainty surrounding economic outcomes.
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From page 106... ...
domestic and international R&D in various MSE subfields and (2) the contribution of MSE R&D to the production of other goods and services in the economy.
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From page 107... ...
Turning more narrowly to the issue of R&D, it appears that R&D outsourcing abroad is still relatively small for the subfields considered. However, based on the benchmarking analysis and supported by the analysis of patent data and case studies, the United States seems to be losing the technological lead in some materials subfields.
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108 G L O B A L I Z A T I O N O FM A T E R I A L SR & D foreign direct investment.4 The conclusions of these analyses point to some key factors that are likely to determine the impact of MSE R&D globalization on the U.S. economy.
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Following years of government and corporate policies aimed at opening the United States to the world market and improving access to foreign markets for U.S. firms, the economy is now much more linked to the economies of other countries.
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By doing so, the United States could also gain from the growing global knowledge base, which will stimulate innovation in all the leading coun
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dominance in DRAM memory chips was accompanied by the development of more sophisticated and lucrative microprocessors, an area in which the United States dominates. On balance, the United States might well gain from the globalization of MSE, provided that U.S.
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The Hart-Rudman Commission5 wrote as follows:6 "The scale and nature of the ongoing revolution in science and technology, and what this implies for the quality of human capital in the 21st century, pose critical national security chal lenges for the United States." The commission noted that America's strength has always been tied to "the spirit and entrepreneurial energies of its people" and that "the U.S. remains the model of creativity and experimentation, inspiring other nations to recognize the true sources of power and wealth in science, technology, and higher education." It warned, however, that U.S.
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A S S E S S I N G T H EIM P A C T S O FR & D G L O B A L I Z A T I O N 113 motely and casualties will be reduced. Fighting in urban areas will increase, requiring entirely different strategies and equipment, and guerilla warfare will require new strategies and weapons.
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This process is driven by several forces, not the least of which is the substantial and growing availability of intellectual resources offshore, often at less cost, as well as by the increasing availability of unique tech nologies not found in the United States. The global shifts in MSE R&D cannot be reversed or stopped.
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It is possible that the globalization of MSE R&D will be like the rising tide that raises all boats -- that is, increased global activity will lead to innovations, discoveries, and technologies that drive new economies and industries and open new paths for the United States to acquire access to the best materials and technologies required for national security and homeland defense. In addition, it is widely accepted that economic growth around the world, and the growth of international trade, can help underpin global security.
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experts are not being pro duced in sufficient numbers and with sufficient expertise? Is the ability of the United States to continue to be a leading participant in the global research effort in jeopardy?
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In the extreme case, if continuing globalization results in the loss of a critical level of knowledge and expertise in the United States, critical innovations might go undetected and unevaluated. In the short term, the uncertainties surrounding control and ownership of knowledge and innovation might deter corporate investments in these emerging centers of R&D activity.
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knowledge will not, in itself, prevent the emergence of technology from new centers, and it will not guarantee the emergence of similar and equivalent innovation here in the United States, nor will it facilitate access to these new innovations. Therefore, a different approach to guaranteeing access is needed that is not based solely on control.
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