Despite India’s strides in innovation, results of a KPMG survey say that the world’s innovation hub will most likely shift to China from the US.
The study, titled Global Technology Innovation Survey and carried out by KPMG US between March and May 2012, put the question to 668 business executives globally, in start-ups, mid-size and large enterprises, venture capital firms and angel investors, all of whose organisations focuss on technology.
They were asked to predict disruptive technology breakthroughs and the scope of change in the next 2-4 years.
Of the respondents, 25 per cent were from the US, 14 per cent from China and 9 per cent from Israel.
Almost 30 per cent of the respondents said China and the US show promise for disruptive breakthroughs that will have a global impact, while only 13 per cent cited India.
Interestingly, 71 per cent pointed to China as the region with the maximum technology impact while the US found favour with only 39 per cent of the respondents.
Forty four per cent of the respondents forsee the tech hub shifting away from Silicon Valley in the next four years, while 23 per cent found this unlikely. The remaining 34 per cent were undecided. Of the respondents who believed in this shift, 44 per cent said it would move to China.
“The pace of technology innovations today is happening at an unparalleled speed and China’s projected rapid rise to prominence as a technology leader would be another example of this,” said Mr Gary Matuszak, Partner, Global Chair and US leader for KPMG’s Technology, Media and Telecommunications practice.
“China’s anticipated parity with the US tech sector shows the significant challenge facing the US to retain its position as an innovation leader,” he added.
Total global spending on R&D is anticipated to increase 3.6 per cent to $1.2 trillion, according to Battelle Memorial Institute and R&D Magazine . As a percentage of global R&D spending, the US contributes 34 per cent and China 12.9 per cent. India contributes a mere 3 per cent.