China is getting ahead of U.S. as it was just reported that the country is already exceeding America in terms of innovation and development. Despite being the world leader in terms of commercializing new products and inventing, still, the most influential country has lost a lot of jobs and factories to China.
This new report is really hurting the economy of the U.S. even if the country is still the forerunner when it comes to the total investment in development and research. In the year 2015, America already spent $500 billion just for these purposes.
This has been proven by a study which was conducted by the Boston Consulting Group or the BGC. The company's finding would reveal that China has already surpassed U.S. last year as it was also noted that the Asian country spent more than the U.S. on the last stage of research and development. And by looking at the country's rate when it comes to spending, China is forecasted to invest and spend twice as much as the U.S. by the year 2018 as per BGC.
This only means that while U.S. is busy doing the hard work on creating new products and technologies, China and some other countries are benefitting from this. This is because these countries are getting those ideas and as such, transform them into commercial products. It only implies that these countries are free-riding on the U.S. investment in research and development.
This new will also yield a crucial blow for the economy of the U.S. as also confirmed by BGC. It can be remembered that the country is always sending tens of billions of dollars a year just to create output and this also affects a lot of jobs throughout the years.
To illustrate, the increasing drone market is greatly affecting this shift. It can be recalled that the U.S. military created the drone technology for specific purposes. Their invention features the inclusion of microchips for an improved wireless control. Nonetheless, a company in China enriched some features if this invention for an improved function. As a result, this company is now the prime producer of commercial drones.
If U.S. would not take advantage of its strategic solutions in order to deal with this, China will continue to beat the country regarding investment in research and development. Making appropriate policies might be timely for U.S. now.