Western governments’ spending on basic research and development (R&D) has declined sharply as a percentage of GDP since the 1980s, even as spending by emerging economies has risen steadily.
“(This) is surprising and potentially instructive,” states a report by the World Trade Organization (WTO).
Mexico is part of this trend related to research and development.
For the WTO, it can be argued that many governments today do not need to “discover” new economic strategies so much as to “rediscover” old economic strategies that they had consciously forgotten or dismantled.
Emerging economies ’spending on R&D has steadily increased Government spending on R&D as share of GDP
Investigation and development
This variable plays a fundamental role in the innovation process.
Research and development is essentially an investment in future technology and capabilities that is transformed into new products, processes and services.
Companies, governments, universities and non-profit organizations around the world have made substantial investments in R&D.
Research and development expenditures have increased significantly over the past two decades, but gaps in R&D intensity persist between income groups.
Total global spending on research and development, including public and private investment, has almost tripled in current dollars since 2000, from $ 676 billion to $ 2.0 trillion.
In hindsight, the boom in the East Asian economies in the 1960s, 1970s and 1980s marked another turning point for industrial policies.
The dizzying success of these economies was widely attributed not only to strong economic fundamentals, but to the central role of the state in fostering cooperation between the public and private sectors, mobilizing financial resources behind strategic industries, reallocating labor from sectors with low to high productivity and promoting export development.
Indeed, according to the WTO, perhaps its key policy innovation was to use state intervention, not to foster inward protectionism and import substitution, but to actively promote an increasingly outward-oriented and oriented competitiveness strategy. to exports, in recognition of the fact that access to larger markets and increased competition would expose companies to new technologies and encourage them to innovate.
Far from being the antithesis of these Asian industrial policies, trade liberalization, economic integration and globalization were indispensable preconditions.