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East Asia: The Business Funding Capitol of the World

East Asia:  The Business Funding Capitol of the World

A recent study by Times Higher Education reveals that when it comes to business funding, East Asian scholars are leading the pack.  South Korea holds the number one place for investments, with investments equivalent to $98,000 going to each South Korean researcher.  Singapore takes second place at an average of $84,500, while the Netherlands rounds out the top three with an average investment of $72,800.  The United States doesn’t even get a top ten position, instead coming in at number fourteen with an average investment four times less than South Korea, at $25,800.


Foreign owned firms are increasingly becoming the majority of businesses to invest in university research including Indian-owned Jaguar Land Rover.  Increasingly, investors are looking for companies who are willing to make broad investments into universities, research, and development.  Many in the United Kingdom point to the countries reluctance to invest in higher education, as a reason for its rapidly failing manufacturing industry.  In fact, other Asian countries like Taiwan, China, and India all round out the top ten – a major wake-up call for Western countries.


Research and development aren’t the only specialties that Asian firms continue to invest into.  Commercial firms are increasingly likely to fund consultancy work between experts and larger companies while other types of partnerships include placing their own researchers onto university campuses –  many times, abroad. But, the funding of research and development in East Asian economies has a significant impact on the economic growth in those countries.  In fact, funding of research and development in Asia has an impact two to three times more than R&D investments in western countries and domestically.


The biggest and most obvious opportunities for business funding in Asia all involve e-commerce.  Thailand based aCommerce has a recent $10.7 million investment and the company, who helps businesses establishes a mobile and online presence – key to any successful business.  The domination of the Internet as a retail based has permeated the market and given e-commerce with vast amounts of data and the ability to perform exceptionally.  It’s this broad scope of information that has given business funding in e-commerce, in Asia, a leg up – especially when it comes to firms with the ability to translate this data for e-commerce companies not able to do so.


Some e-commerce retailers seek business partners with the ability to provide them with point of sale systems that also track inventory.  Others want a more systematic approach that provides inventory tracking, warehousing, logistics, and consulting:  this is the route that aCommerce has taken with its recent $10.7 million funding round.  For firms seeking to do business in East Asia – the future certainly looks bright.