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What is the United States’ Interest?

No one disputes that the rise of China and India as technological powers with huge populations and internal markets, more highly educated scientists and engineers than any other country in the world, and sophisticated military forces will profoundly affect American interests. But exactly how? What U.S. interests are at stake? How do national interests diverge from those of U.S.-headquartered global companies? Questions such as these must be addressed before we can consider how the United States should respond to the growing challenge from these countries.

Norman Neuriter, former State Department science adviser, co-chair of the Indo-US Science and Technology Forum, and scholar with the American Association for the Advancement of Science, moderated a conference session devoted to these questions. Other contributors to the discussion included Tony Hey, chief of Microsoft Research, Kent Hughes of the Woodrow Wilson International Center for Scholars, and Da Hsuan Feng of the University of Texas at Dallas and the National Cheng Kung University, Taiwan.

Tony Hey described Microsoft’s investment in research in Central and South Asia, first in China in November 1998 then India in January 2005. The Microsoft unit in China has seen 50 percent growth, hiring 120+ staff members in FY 2006 and creating links with universities, including nine joint laboratories. Total employment of locals with technical qualifications is more than 300. Although smaller,—employing 50 full-time staff and 100 interns—the company’s Indian operation builds on that country’s tradition of education and set of research challenges. Both operations have become integral parts of the company’s worldwide research and development activities.

Kent Hughes compared the challenge of China and India to the Russian launch of the Sputnik satellite, 50 years to the week earlier. Sputnik was seen as a challenge to U.S. technological dominance, particularly in the military sphere. It helped spur investment in science and engineering education and private sector innovation. Will the challenge of China and India’s growing economic strength and technological capacity prompt a similar U.S. response? “Innovation has gone global,” said Hughes, forcing the United States to change its role to one of adapter as well as lead innovator.

Hughes observed that the United States has long enjoyed a pool of domestic technical talent and an inflow of foreign talent. The emergence of a global skilled labor pool able to cooperate and compete at a distance as well as migrate from one location to another have benefited the United States and other countries enormously. They also present a conundrum, however, as low salaries in India and China bring competition. In this context, India and China could define wage rates for professionals everywhere, creating disincentives for native-born students to pursue careers in science and engineering.

The global talent pool represents a particular challenge for U.S. national security agencies, which are restricted in their ability to engage world talent. In recent years, growing difficulties in getting U.S. visas for scientists from abroad to attend conferences have driven some U.S. growth abroad. The United States should consider the emergence of a global talent pool as a positive competitive challenge and catalyst. Fifty years after Sputnik, are we meeting our next Sputnik challenge? In Hughes’ view, emerging capacity in China and India underscore a need to reevaluate the strengths and weaknesses of our innovation system anew.



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2 What is the United States’ Interest? Kent Hughes compared the challenge of No one disputes that the rise of China and China and India to the Russian launch of the India as technological powers with huge Sputnik satellite, 50 years to the week earlier. populations and internal markets, more highly Sputnik was seen as a challenge to U.S. educated scientists and engineers than any other technological dominance, particularly in the country in the world, and sophisticated military military sphere. It helped spur investment in forces will profoundly affect American interests. science and engineering education and private But exactly how? What U.S. interests are at sector innovation. Will the challenge of China stake? How do national interests diverge from and India’s growing economic strength and those of U.S.-headquartered global companies? technological capacity prompt a similar U.S. Questions such as these must be addressed response? “Innovation has gone global,” said before we can consider how the United States Hughes, forcing the United States to change its should respond to the growing challenge from role to one of adapter as well as lead innovator. these countries. Hughes observed that the United States has Norman Neuriter, former State Department long enjoyed a pool of domestic technical talent science adviser, co-chair of the Indo-US Science and an inflow of foreign talent. The emergence and Technology Forum, and scholar with the of a global skilled labor pool able to cooperate American Association for the Advancement of and compete at a distance as well as migrate Science, moderated a conference session from one location to another have benefited the devoted to these questions. Other contributors United States and other countries enormously. to the discussion included Tony Hey, chief of They also present a conundrum, however, as low Microsoft Research, Kent Hughes of the salaries in India and China bring competition. In Woodrow Wilson International Center for this context, India and China could define wage Scholars, and Da Hsuan Feng of the University rates for professionals everywhere, creating of Texas at Dallas and the National Cheng Kung disincentives for native-born students to pursue University, Taiwan. careers in science and engineering. Tony Hey described Microsoft’s investment The global talent pool represents a particular in research in Central and South Asia, first in challenge for U.S. national security agencies, China in November 1998 then India in January which are restricted in their ability to engage 2005. The Microsoft unit in China has seen 50 world talent. In recent years, growing percent growth, hiring 120+ staff members in difficulties in getting U.S. visas for scientists FY 2006 and creating links with universities, from abroad to attend conferences have driven including nine joint laboratories. Total some U.S. growth abroad. The United States employment of locals with technical should consider the emergence of a global talent qualifications is more than 300. Although pool as a positive competitive challenge and smaller,—employing 50 full-time staff and 100 catalyst. Fifty years after Sputnik, are we interns—the company’s Indian operation builds meeting our next Sputnik challenge? In Hughes’ on that country’s tradition of education and set view, emerging capacity in China and India of research challenges. Both operations have underscore a need to reevaluate the strengths and become integral parts of the company’s weaknesses of our innovation system anew. worldwide research and development activities. 11

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12 THE DRAGON AND THE ELEPHANT China would move forward together. The rift Da Hsuan Feng, University of Texas at between the two countries in the 1950s was a Dallas and Senior Executive Vice President for great disappointment to Nehru. Now, the Research at the National Cheng Kung University increase in international commercial activity and at Tainan, Taiwan, outlined a future scenario the growing middle class in both countries will based not on triadic competition among China, drive demand for better health care, India, and the United States but rather environmental quality, and quality of life. envisioning a political and economic A European Union was scarcely imaginable convergence of China and India. In his talk, amid the ruins after World War II, said Feng. In “Googling My Late Father,” he described his the same way we may be surprised by a long connection to India, having been born in convergence of interests in Asia. He posited a New Delhi in the 1940s to a journalist based future train ride from Seoul to Mumbai that there. Many years later, he came across a would not require passport checks, just as published interview between India’s Prime Europeans now travel from Helsinki to Rome, Minister Jawaharlal Nehru and his father, in the result of increasingly shared interests. which Nehru voiced his hope that India and