A joint study by Booz Allen Hamilton and Insead, based on a survey of 186 companies which spent $76 billion on R&D in 2004, confirms that corporate R&D is moving east. Some stats from the report:
—77% of new R&D sites planned in the next three years will be established in China and India.
—By the end of 2007, China and India will account for 31% of all global R&D staff, up from 19% in 2004.
—Between 1990 and 2004, China and India together grew their share of foreign R&D sites from 3.4% to 13.9%.
—Between 1990 and 2004, R&D sites in the U.S. fell from 19.6% to 15.9%, and in Western Europe fell from 30% to 28.1%.
—23% of foreign R&D sites do nothing but customize products and services for the local market.