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demonstrates the premium these countries place on innovation. OVERVIEW: Despite the tremendous economic potential of the Brazilian, Russian, Indian, and Chinese (BRIC) economies, few studies have compared technological innovation in these countries. This study investigates three main issues related to technological innovation in BRICs: 1) indicators of technological innovation were evaluated and used to compare capability of technological innovation between the four countries; 2) differences in innovative configurations were mapped based on constructs of "fundamental vs. applied innovation "and "incremental vs. radical innovation"; 3) the absolute and relative innovative strengths of these four countries were examined in 31 different technological fields. The empirical findings are based on analysis of a patent and citation data set comprising all utility patents granted by the U.S. Patent and Trademark Office to BRIC inventors from 1976 to 2006. These findings elucidate the comparative development of technological innovation in BRIC countries. KEY CONCEPTS: technological innovation, patent, citation, BRIC. In a knowledge-based economy, innovation is far more important than land, physical capital, or labor as the primary factor affecting a nation's economic growth and development. Technological innovation can circumvent entry barriers and help a country maintain technological competitiveness. Similarly, a country failing to innovate may be outpaced economically as competitors devise more advanced and more marketable products. Effective innovation management is thus a key to corporate success, technological prowess and national economic development (1). This research examines technological innovation in different countries. Several indicators of technological innovation have been proposed and used. The most common measures can be categorized as measures of R&D, patents and new products. The present study analyzes patents as a major measure to elucidate technological innovation in accordance with previous studies by Ernst (2) and Tseng and Wu ( 3) for the following reasons: First, patent data are accurately recorded, readily accessible, quantifiable, and easily manipulated for more detailed analysis by technological field, product or patent holder. Second, analysis of patent grants within a single country provides an objective and consistent measure of technological innovation, because patents are examined and eventually granted by a single national patent office. Finally, in comparison with other sources, patents are often the only timely measure of rapid technological change, particularly in the context of global competition. Over the next 50 years, the BRIC economies (Brazil, Russia, India, and China) are expected to become a much larger force in the world economy. Goldman Sachs projected that, in less than 40 years, the combined GDP of the BRIC economies may collectively exceed that of the G6 in U.S. dollar terms ( 4 ). The combined GDP of the four BRIC countries in 2007 was an estimated US$6.8 trillion, approximately 13 percent of world GDP, up from 8.5 percent in 2002. Despite the expected impact of the BRICs on the world economy in the coming decades, studies of technological innovation in the BRIC countries are rare. Restated, this study investigates three main issues related to BRIC
India and China participated in discussions upon the outlook for each of the economies. as well as to compare innovation capability in BRIC countries. Because patents may vary considerably in their ultimate economic impact. the stability of the dollar as the world reserve currency and achieving greater influence within the IMF (International Monetary Fund). The following two indicators are often used to measure technological innovation. it is necessary to select these indicators correctly (7). This study investigated only utility patents. The patent and citation data set used in this study consists of all patents granted by the U. Patent count is a simple proxy for the summed value of those patents. the once-sunny skyway to uncharted prosperity for BRICs (Brazil.6 ). where the government heads of Brazil. Patent count Patents actually granted are assigned a higher value than mere patent applications because patents are only granted when they contain technological innovations that exceed a certain level of newness. After underlining the broad struggles of their individual economies’ developments. India and China) is now recognized as clouded by the challenges each faces through global recession and national limitation. Numerous valida tion studies have demonstrated a significant positive relationship between patent citations and the eventual technological impact of a patent ( 6.E. 2009 Wall Street Journal article “Dollar-Trashing Rates Low on BRIC Agenda. Russia.” by Riva Froymovich. Fastest Growing Economies are Organizing The first BRIC summit took place in Yekaterinburg. more sophisticated analyses have been made by examining patent citation statistics ( 5. Patent count defines the number of patents granted to a country during a particular year.8. 2009.GlobalSources. however. 3) absolute and relative innovation strengths of BRIC in 31 technological fields are compared. The challenges for each of these rapidly growing nations were also defined during the discussions at this summit to prove that future organization and cooperation among them would be imperative.MorganStanley. 1.technological innovation 1) different indicators of technological innovation are examined to compare technological innovation capability in the four countries.com/India According to elements discussed in the June 16. 2) innovation configurations in the BRIC are compared. Net Exporter Pegging Domestic Currency to the US Dollar Barriers to Trade . sustainable development and success in the each of these four superpowered regions is dependent upon key growth conditions such as: • • • Net Importer vs. The government leaders of four of the largest and fastest growing nations of the world have organized for the first time at a summit in Russia. Comparing Technological Innovation Capability Early studies typically examined patent count as a measure of innovation capability.com India trading Find India trading on Internet's Top B2B Directory! www. Russia.C. Fund. Russia on June 16.S. Patent and Trademark Office (USPTO) to BRIC inventors from 1976 to 2006. Ads by Google Inflation Protection Invest in Morgan Stanley A.9 ). The quantity of patents issued to a company in a given year is far less significant than patent quality. and not design or plant patents. Know more www.
maintaining its current account surplus is not the only issue. Without their colossal export sector to balance an almost equally impressive import industry. with exports dropping dramatically due to less demand from Western nations and real estate and infrastructure projects sitting half-completed due to lack of funding. however. The Asian super-producer has been stubborn to lower export prices to remain competitive in the international arena. The crisis has provoked new approaches to business in Brazil. Russia has been challenged with a diminishing population. right across the road.28pm IST • • Tags: World Economic Forum| Goldman Sachs DAVOS: If India is trying to put up a strong show at this Swiss ski resort. the Chinese would Bric nations vie with each other to woo investors Sidhartha. monetary and civil policies through the next several decades. These developments have contrasted India’s booming pre-crisis economic growth rate of 8. its rivals China.500 corporate chiefs gather to discuss issues facing the global economy. each of the BRIC countries hosts a myriad of growth issues that have arisen due to the onset of the global financial recession beginning at the last quarter of 2008. 2009. And. 2011. Specifically highlighted were trade barriers with the US (while preferring exportation of riskaverse primary goods to China) and radical corporate governance. there is Russian President Dmitry Medvedev to deliver the opening speech at the World Economic Forum's Annual Meeting where 2. However. . “Brazil: Challenges and Opportunities in the New Global Scenario” hosted by The Americas Society and Council of the Americas on June 9th. India has been affected by the global recession in nearly every sector. Read on • • • The BRIC Economies Commitment Needed for Success in Sustainability BRIC Countries Trade with Canada Undergoing several market adjustments since the end of 2008. increased corruption and strained export competition since the onset of the crisis. a hoarding offering opportunities in Russia provides another option to potential investors. TNN. Brazil’s struggles were discussed at length at the São Paulo Conference. while this would create alternate struggles to maintain efficiencies and employment rates. China has weathered the global recession with the most grace of all the BRIC nations. 09.• Current Account Management The Impact of Global Recession on Developing Nations As the world’s fastest growing nations with the most swiftly developing economies. President Dmitri Medvedev has been expressive about the importance of cooperation among BRIC economies and the need for reform. To accompany an arguably unbalanced government and serious necessity for modern infrastructure throughout the 11 time zones Russia spans. Just as an `India Inclusive' billboard greets you near the main conference venue. if there are five ministers arguing India's case. BRICs are expected to emerge as global superpowers with the ability to significantly impact international trade. Jan 26. Russia and Brazil can't be far behind.7%. some of which are criticized to be counterproductive to its growth.
rather than foreign exchange rate management. 06. the inaugural summit focused primarily on forging common positions on financial regulatory reform and climate change. India and China? The summit between Brazil.18. However. India and China (the BRICs) in the Russian city of Yekaterinberg on June 16 marked the first such official meeting of a group largely confined to the pages of economic analysis. However. While the contribution of these economies to global growth is set to increase over the next decade. this meeting remains more political than economic. their different interests suggest that forgoing common positions may be difficult. Article Controls EMAIL PRINT REPRINT NEWSLETTER COMMENTS (8) . Signals from BRIC members suggesting they want to reduce their dollar assets and increase the use of domestic currencies in international trade have attracted much media attention and added to pressure on the dollar. Russia. 12:01 AM EDT What is the outlook for Brazil. Russia.not have a sustainable economyDoctor Doom The BRICs: An Analysis Nouriel Roubini.09.
they may be unable to decouple for long. is likely to experience a growth contraction of over 5% as domestic consumption and construction suffer. In particular. with the outlook for domestic demand varying widely across these countries. In particular. India and China are expected to be among the very few countries that will grow at or above 5% this year. encouraged by government incentives. which holds that parts of Europe and Asia are detaching themselves from the U. economy. Related Stories • • • • • • • Great Speculations: Why China Is So Bubble-Friendly Obama Study: Oil Cos Not Drilling Where They Can Fukushima Vs. Chernobyl Forget Portugal. though. While the policy responses of these countries have been relatively robust. and can it fill the gap from a reduction in demand among the G3--especially the U.S. Russia. Three Mile Island Vs. does seem to be showing signs of growth from a weak base. there is a risk that government stimulus might be prompting asset bubbles and not a real increase in domestic demand. So. contributing the bulk of global growth even as most of the advanced economies remain far in recessionary territory.SHARE YAHOO! BUZZ The relatively more optimistic growth expectations for (most of) the BRIC countries has analysts speaking again of the "decoupling" theory. Domestic demand in India and Brazil shows signs of resilience. Chinese domestic demand. the channels through which they were affected by the global recession and their future growth possibilities. will BRIC domestic demand hold up. The strong inflow of foreign investment into local markets has already triggered central banks to intervene and start to build international reserves once more. and they may outperform most others once a global growth recovery begins. Says Roubini ?” Worry About Spain Why World Food Prices Will Keep Climbing Stories Videos • Rate This Story Your Rating .S. suppressed for much of the past decade. each may again feel vulnerable to external pressures despite fiscal and monetary stimulus. However.? Despite their commonalities--mainly a desire for greater recognition of their weight in the global economy--there are significant differences between the BRICs in terms of their growth outlook.
Today. a simple. The Brazilian economy has experienced a strong pickup in foreign exchange flows via both portfolio and direct investments in Q2 2009 and had a better-than-expected performance of the current account. Furthermore. to a lesser extent. Moreover.com/ 2010/01/01/russia/gdps-decade-us-compared-. China surpassed the U.. Brazil might benefit from China's commodity demand. Brazil depend on commodity exports. http://emreport. India and China are net commodity importers. yet interesting analysis of GDP growth in BRIC nations over the last ten years can be found here. as the largest recipient of Brazilian exports earlier in 2009... Brazilian corporations had significant dollar liabilities. .S. The central bank is also back accumulating international reserves. investments contracted sharply due to a much tighter credit environment and business and consumer confidence were damaged. meaning that the outlook for Chinese growth and the composition of its exports may be of even more significance to Brazil than that of the overall global economy. leaving them vulnerable to the fall in the Brazilian real. Nonetheless.• Overall Rating Reader Comments In relation to this article. the overall performance of the economy has been somewhat resilient-gross domestic product for the first quarter of 2009 was not as dire as consensus feared. I survey the ways in which these economies were buffeted by the financial crisis and global recession and assess their ability to make the structural reforms needed to foster long-term growth. Read All Comments (8) Post a Comment In particular. The improvement in Brazil's consumption in Q1 2009. while Russia and. Chinese commodity imports could still be pricked by higher prices. The Brazilian central bank has put in place a considerably responsive monetary policy and monetary easing will likely add steam to the recovery. underpins the idea that there is some resilience in the dynamics of consumption in Brazil. In fact. However. The Brazilian Outlook is Improving … For Now The Brazilian economy has certainly felt the pinch of the global economic crisis as demand for its exports remains significantly lower. especially on a quarter-on-quarter basis.
agriculture yields. The abundance of natural resources may contribute to terms-of-trade gains. And a large consumption base. Instead. India: Slow Reforms Constrain Potential Growth Capital inflows and the IT boom played a large role in driving job creation. Overall. Increasing the potential growth rate from the current level will therefore require raising infrastructure and energy investments. The expansion of potential growth will only take place if this appropriate framework is built. wiser government investments and a more efficient set of labor laws. has sustained demand and corporate sales. the company still has significant investment needs to exploit the recently discovered and expensive deep-sea oil. however. The large fiscal deficit (over 10% of GDP during 2008-09) could stifle recovery in the next few years. among other things. . Despite Chinese loans toPetrobras. Yet. leading to a U-shaped recovery. Strong consumer demand and private sector investment plus a large share of government spending in GDP will certainly help fuel recovery. Rising government borrowings could crowd out investment and invoke further rating downgrades. The absence of benign global conditions might make a 9% GDP growth rate tough to achieve in the coming years. especially in rural and semi-urban areas. Yet a sluggish global recovery and lower credit growth would constrain the ability of private sector spending to drive growth. monetary and credit measures are helping sustain growth. these could limit the development of Brazil's non-energy sector. India's high dependence on foreign capital and IT exports increased its vulnerability to the global crisis. GDP growth in 2009 might fall to around 5% from the buoyant 8%-9% of recent years. the government might focus on expanding domestic production capacities and acquiring energy stakes abroad.In the longer term. Brazil now depends on credible macroeconomic policymaking and a sound banking system. investment and asset bubbles in recent years. government savings. The expansion of the middle class and strength of the nascent housing sector require large investments in infrastructure and education and adequate microplanning. As a result. But most of these reforms are politically challenging and will happen at a snail's pace in the coming years. increased trade liberalization. But overcoming structural deficits requires politically unviable measures like reducing farm and fuel subsidies. education spending and implementing labor law reforms. fiscal. But returning to above-potential growth may not even be sustainable and will only accentuate inflationary pressures given supply-side constraints. the Brazilian economy will only return to sustained growth if reforms contribute to productivity gains. Such a framework would require a more efficient tax system.
yet interesting analysis of GDP growth in BRIC nations over the last ten years can be found here. whether in the financial sector or the capital account. India's large population can be a potential source of new global demand. other low-cost locations have emerged and the U. But accelerating financial sector development would improve the intermediation of India's large domestic savings and help reduce its corporate dependence on external capital. http://emreport.S. a simple.com/2010/01/01/russia/gdps-decade-us-compared. foreign institutional investment inflows. which declined in 2008. A large population and rising incomes will offer immense opportunities for domestic and foreign investors ahead. While FDI has slowed in recent months. and also we should include MÃ©xico (also [Read More] . The current crisis will only strengthen India's sequenced liberalization policy. low-income groups need to be pulled up by job creation and higher incomes. India's IT sector may find it difficult to maintain its outsourcing competitiveness as cost differentials with the West have waned since the last recession. the sector needs to move to higher-end services and also expand the domestic client base. especially in the manufacturing and IT sectors.[Read More] Posted by nevinsm | 04/15/10 11:40 AM EDT Excellent article. Page: 1 2 Next > Reader Comments In relation to this article. As the recent Indian market rally shows. It is Latin America the most remarkable player among the emerging countries. plans to raise taxes on outsourcing companies. To keep up. liberalization and reducing red tape will help India attract more direct investment. To do so. will again be bullish for India when the global recovery begins.But reforms can help strengthen domestic demand and tie it to domestic--instead of external--drivers. reducing dependence on hot money inflows. Rural development is also essential as the government still struggles to bolster industrialization and the private sector's role. Seems like BRICs are in a healthier status than Western World. As the West de-leverages.
where the India and Brazil just economical. Latin AmericaPosted by Alberto122 | 07/06/09 04:31 PM EDT It may be serious attempt to replace USD. Subscriptions • • Subscribe To Newsletters Subscriber Customer Service ADVERTISEMENT Get Stories By Email Top of Form Select Topics: .Tags: bric. if such economical reasons for them (Brazi [Read More] Tags: gesterbyPosted by gesterby | 06/19/09 04:54 PM EDT Read All Comments (8) Post a Comment Intelligent Investing | Data | Knowledge | Insight | Wisdom Today On Forbes. but for diffrent reasons . a former Apple senior vice president says.com An Insider's Take On Apple In The Post-Steve Jobs Era Forbes Blogs Anyone predicting the company will falter without its CEO should take a closer look at the team he has put in place.Rusiia and China political and economical .
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