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East Asia Puts Their Money Where Their Scholars Are

East Asia Puts Their Money Where Their Scholars Are

You can often tell where the focus of a company is by looking at where they place their money.

If the focus were on manufacturing, there would be a significantly greater amount in their materials and production budget. If a company is more focused on improving their image or spreading the word about themselves, their marketing budget will be more heavily weighted. So it would make sense intuitively that if a company were interested in innovation and creating new and better ways to do things that they would put their money toward research.

That is exactly what the Innovation Index, compiled by Times Higher Education has shown. Companies in Asian markets in particular are investing large amounts of money in scholars who are in charge of their innovation and research. South Korea is at the head of the list with a spending average of $97,900 per scholar. Singapore comes in second place with an average of $84,500 per academic.

While the top ten include the Netherlands, South Africa, Belgium, Sweden, and Denmark, Asian countries fill 5 of the top ten slots. India has invested $36,900 and the results are clear in the success of companies like Jaguar Land Rover. Is it any wonder that it is also companies based out of Asia that is at the top of the innovation field? The collaborations between businesses and universities allow companies to gain an insight that is on the cutting edge of today’s scholars, allowing them to ride that same edge of innovation.

The US is number 14 on that list with an average of $25,800.00. The innovation and research of a company can be the difference between whether a new product idea will sink or swim. The idea is that by getting research completed at a university, the academic arena is a place that is more conducive to experimentation and taking risks. This kind of open thinking is what allows those top companies remain in the top ten.

So what kind of impact does Asia’s emphasis on research and development have on their innovation?

If you go by the Forbes list of most innovative companies, the answer is that a focus on research and putting money into universities for product and market research has a significant impact on Asia’s innovation. Asia has more companies in the top ten than any other regional market.