Spot the Losers
You don't need a degree in development economics to see who the winners and losers will be. Despite China's economy relying on manufactured exports to the West, it still invests nearly twice as much in R&D as India; I dread to think what levels it spends on infrastructure.
In fact, according to the OECD, China will soon be the world's second-biggest R&D spender in dollar terms - $136bn this year as opposed to Japan's $130bn and America's impressive $330bn. You have to hand it to the PRC though - they are full of good sense on a lot of things (shame about the environment).
Europe, on the other hand, would do well to up its spending and encourage the things that it is good at - technology and services - rather than buckling to domestic pressures from trade unions and farmers. I know who the smart money is on.
India’s expenditure on research and development is 0.7% of its gross domestic product (GDP) as compared with China’s 1.2%.
Minister of state for HRD D Purandeswari told the Upper House in a reply that North America spends 2.7%, Japan 3.1% and the European Union 1.8% of their GDP in R&D.