No sane person is aloof to the fact that both China and the US are ruling the global economy–that too for a long time now. If we look at the common characteristics of these two countries and some of the others from OECD, one factor is common: the magnitude of expenditure on Research and Development (R&D) sector and the extent to which this sector is endorsed and supported by the government. According to the UNESCO Institute for Statistics, the US spends 2.7 per cent of its GDP on R&D while China and India channel two per cent and 0.8 per cent respectively.
Figures from the Organisation for Economic Co-operation and Development (OECD) depict how the two largest economies are vying to top in this field. In 2012, China spent about 34 per cent as much as the US and in 2016, the figure reached a whopping 44 per cent (the latest available data). If we take Purchasing Power Parity (PPP) into account, China’s spending in 2016 equals a jaw-dropping 88 per cent to that of the US.
We must learn from our dear friend and neighbour, China. But first, let’s ask ourselves some basic questions.
In a global community, virtually based on technology, efforts made in R&D exercise a profound impact on the economic prosperity and the quality of life
Why is it imperative to invest in the R&D sector or how can it boost our economy? In a global community now virtually based on technology, efforts made in R&D exercise a profound impact on the economic prosperity and the quality of life.
R&D activities allow scientists and researchers to cultivate new knowledge, techniques and technologies. As technology changes, people can produce more with either the same or fewer resources, consequently increasing productivity–the most significant part of an economy.
But then how can we improve our R&D sector? By public-private partnerships (PPP). Countries that top the list of spending on R&D have the backing of the business sector.
Our giant multinational companies must invest in R&D, hold competitions, build a pool and encourage innovation, hence, incentivising budding scientists. We cannot acquire our way to innovation. This is a continuous process that calls for continuous investment. And recognising this fact that you just can’t “buy” technology provides you with the impetus that we need to be involved in an ever-dynamic process of productivity. More productivity means higher profits, growth and market value per dollar of R&D.
Our companies and universities must collaborate; provide proper platforms and help students come forward with new ideas and projects. Many kinds of research show that companies are always on the lookout for innovative partners. There is a dire need to raise the standards of research in our universities.
Collaboration with other universities is one of the best ways to enhance our fund of knowledge. This also holds for our local companies that should try and work together with international institutions.
In Pakistan, the government is spending more on R&D. However, the business sector is investing a meagre amount. One of the reasons for little investment in R&D is the absence of peace. UNDP’s latest research publication, “Development Advocate Pakistan” underscores the importance of peace for sustainable economic progress. Only a peaceful society can indeed provide a healthy socioeconomic ambience.
Pakistan has the privilege of a flouting and huge youth bulge. It has a lot of potential to go forward in R&D, provided proper investments are made in this sector. The National Human Development Report 2017 highlights an existing demographic advantage i.e. the majority of the population is young. Quality education, gainful employment and purposeful engagement opportunities can serve as positive agents of change for Pakistan’s youth.
The government, as well as our business sector, need to pay more attention to R&D to make our country more prosperous and flourishing. Or else, we will be left behind and we all know that the “survival of the fittest” is still an applicable theory.
This issue or rather an aspect of national priorities is critical in deciding a country’s future.
History testifies the importance of research and innovation in a nation’s ascent. Pakistan, which spends a paltry 0.3 per cent of its GDP on R&D, needs to reconsider it and set in place a national narrative that centres upon innovation and knowledge economy. The first step in that direction would be to allocate a greater budget to this sector.
The writer covers social issues such as gender inequality and domestic abuse. Besides being a keen observer and commentator on current affairs, she is a voracious reader of English prose and non-fiction