Recent research by the National Science Foundation stated that a number of US firms ranging from pharmaceuticals to semiconductors are outsourcing R&D and Innovation, with foreign-based Automotive R&D accounting for nearly 40% of the total R&D among all US companies. India and China rank foremost among suppliers of innovative research and development by providing the complex knowledge that only a broad network of specialists can offer. Here are some of the reasons behind the growing demand for R&D and innovation outsourcing.
Availability of a huge talent pool: Countries like India and China continue to be important suppliers of intellectual property, since they have an abundant supply of talented technical and engineering graduates.Jeffrey Phillips, a senior leader at OVO Innovation says, “Soon, countries like India and China will do what Finland has done – match the US in innovation research and output, no longer following our lead but competing with us for the innovation lead.”
