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Tuesday, March 29, 2011

China 'to overtake US on science' in two years, set to outstrip US in science research output




China 'to overtake US on science' in two years

Infographic

Chinese-made bullet train China's surge in progress could soon overwhelm the US, say experts

China is on course to overtake the US in scientific output possibly as soon as 2013 - far earlier than expected.

That is the conclusion of a major new study by the Royal Society, the UK's national science academy.
The country that invented the compass, gunpowder, paper and printing is set for a globally important comeback.

An analysis of published research - one of the key measures of scientific effort - reveals an "especially striking" rise by Chinese science.

The study, Knowledge, Networks and Nations, charts the challenge to the traditional dominance of the United States, Europe and Japan.

The figures are based on the papers published in recognised international journals listed by the Scopus service of the publishers Elsevier.

'No surprise'
 
In 1996, the first year of the analysis, the US published 292,513 papers - more than 10 times China's 25,474.

By 2008, the US total had increased very slightly to 316,317 while China's had surged more than seven-fold to 184,080.

Previous estimates for the rate of expansion of Chinese science had suggested that China might overtake the US sometime after 2020.

“Start Quote

There are many millions of graduates but they are mandated to publish so the numbers are high”
End Quote Dr Cong Cao Nottingham University
 
But this study shows that China, after displacing the UK as the world's second leading producer of research, could go on to overtake America in as little as two years' time.

"Projections vary, but a simple linear interpretation of Elsevier's publishing data suggests that this could take place as early as 2013," it says.

Professor Sir Chris Llewellyn Smith, chair of the report, said he was "not surprised" by this increase because of China's massive boost to investment in R&D.

Chinese spending has grown by 20% per year since 1999, now reaching over $100bn, and as many as 1.5 million science and engineering students graduated from Chinese universities in 2006.

"I think this is positive, of great benefit, though some might see it as a threat and it does serve as a wake-up call for us not to become complacent."

The report stresses that American research output will not decline in absolute terms and raises the possibility of countries like Japan and France rising to meet the Chinese challenge.

"But the potential for China to match American output in terms of sheer numbers in the near to medium term is clear."

Quality questions
 
The authors describe "dramatic" changes in the global scientific landscape and warn that this has implications for a nation's competitiveness.

According to the report, "The scientific league tables are not just about prestige - they are a barometer of a country's ability to compete on the world stage".

Along with the growth of the Chinese economy, this is yet another indicator of China's extraordinarily rapid rise as a global force.

However the report points out that a growing volume of research publications does not necessarily mean in increase in quality.

One key indicator of the value of any research is the number of times it is quoted by other scientists in their work.

Although China has risen in the "citation" rankings, its performance on this measure lags behind its investment and publication rate.

"It will take some time for the absolute output of emerging nations to challenge the rate at which this research is referenced by the international scientific community."

The UK's scientific papers are still the second most-cited in the world, after the US.

Dr Cong Cao, associate professor at Nottingham University's School of Contemporary Chinese Studies, agrees with the assessment that the quantity of China's science is yet not matched by its quality.

A sociologist originally from Shanghai, Dr Cao told the BBC: "There are many millions of graduates but they are mandated to publish so the numbers are high.

"It will take many years for some of the research to catch up to Western standards."

As to China's motivation, Dr Cao believes that there is a determination not to be dependent on foreign know-how - and to reclaim the country's historic role as a global leader in technology.

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China set to outstrip US in science research output



China has shot to second place in the number of articles published in international science magazines and in a few years will take the top spot from the United States, according to a new report.

"China has already overtaken the UK as the second leading producer of research publications, but some time before 2020 it is expected to surpass the USA," said the report by the Royal Society in London.

While the top 10 is still dominated by the major Western powers, their share of research papers published is falling, the report said.
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And as well as China, Brazil and India are coming up fast.

"The USA leads the world in research, producing 20 percent of the world?s authorship of research papers, dominating world university league tables, and investing nearly $400 billion per year in public and private research and development," said the report released Monday.

"The UK, Japan, Germany and France each also command strong positions in the global league tables, producing high quality publications and attracting researchers to their world class universities and research institutes," it added.

But while these five countries alone produced 59 percent of all spending on science globally, their dominant position was nevertheless slipping.

China shot up from sixth place in the period 1999-2003 (4.4 percent of the total) to second place behind the United States with 10.2 percent over the years 2004-08, overtaking Japan.

While the United States remained in the top spot, it saw its share shrink from 26.4 percent to 21.2 percent.

Britain remained third with its share at 6.5 percent, down from 7.1 percent.

In a statement last week after Britain's budget however, the Royal Society welcomed finance minister George Osborne's promise of another £100 million (114 million euros, $160 million) of capital investment in science.

Japan slipped from second to fourth place, falling from 7.8 percent to 6.1 percent, said the report.

Germany, in fifth place, published six percent, down from seven percent, while France, in sixth, published 4.4 percent, down from five percent.

Rounding off the top 10 were Canada, Italy, Spain -- and India, which pushed Russia out of the top 10, moving up from 13th position.

"China?s rise up the rankings has been especially striking," said the report.

"China has heavily increased its investment in R&D (research and development), with spending growing by 20 percent per year since 1999 to reach over $100 billion a year today," it continued.

That came to 1.44 percent of the country's GDP in 2007, it added.

"China is also turning out huge numbers of science and engineering graduates, with 1.5 million leaving its universities in 2006," the report added.

Further down the rankings, but making dramatic progress, were Iran and Turkey.

Turkey's improved scientific performance had been almost as dramatic as China's, the report said, noting that it had declared research a public priority in the 1990s.

The country had increased its research and development nearly six-fold between 1995 and 2007, and during the same period, the number of researchers there had increased by 43 percent.

Iran was the fastest-growing country in terms of numbers of scientific publications, rising from 736 in 1996 to 13,238 in 2008.

"The scientific world is changing and new players are fast appearing," said Chris Llewellyn Smith, who chaired the study at the Royal Society, Britain's national science academy.

"Beyond the emergence of China, we see the rise of southeast Asian, Middle Eastern, north African and other nations.

"The increase in scientific research and collaboration, which can help us to find solutions to the global challenges we now face, is very welcome.

"However, no historically dominant nation can afford to rest on its laurels if it wants to retain the competitive economic advantage that being a scientific leader brings."

The Royal Society's findings were published in its report entitled "Knowledge, networks and nations: Global scientific collaboration in the 21st century".

© 2011 AFP
This story is sourced direct from an overseas news agency as an additional service to readers. Spelling follows North American usage, along with foreign currency and measurement units.

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US bank regulators criticised: 30 times more paid than engineers

By YVONNE TAN  yvonne@thestar.com.my

Top bankers earn more than shareholders in crisis time 




PETALING JAYA: An academician and top financial adviser has reiterated his criticism for regulators of the banking sector in the United States, saying that banks were the clear winners in the global financial crisis of 2008/09.“In the crisis year 2008, salaries of bankers from the top 10 banks rose to US$75bil from US$31bil in 1999 but cash dividends to shareholders amounted to only US$17.5bil,” Tan Sri Andrew Sheng Len Tao said.

Sheng, who is adjunct professor at the University of Malaya (UM) and Beijing's Tsinghua University as well as chief adviser to the China Banking Regulatory Commission, said based on this, banks' management took home 4.3 times more than shareholders, when in fact shareholders were the ones that had to inject capital and government guarantee deposits.

“If banks increase leverage, then they have more profits but assume greater risk. But they can take home larger shares of bonuses because profits would be rising,” he said.
“Essentially, financial sector losses would be paid for by future taxation, which would lead to large fiscal debt, devaluation or inflation, but agents are walking (off) with bonuses,” Sheng said in a talk held at UM last week.

Sheng, who appeared in the 2010 Oscar-winning documentary Inside Job, a narrative which traces how the global financial crisis started, pointed out during the talk that financial engineers at Wall Street were paid some 30 times more than engineers.

“Financial engineers build dreams but when those dreams turn out to be nightmares, the people pay for it,” he was quoted as saying by foreign press following the release of the documentary.

Touching on the area of global imbalance between the West and the East, Sheng said there were currently three imbalances that had to be worked on.

Simply put, these are current account imbalances with an apparent pattern of Europe being broadly in balance, the United States in deficit and Asia, in surplus; foreign exchange reserves imbalance with the Chinese, Japanese and the rest of Asian foreign reserves exceeding US$4 trillion, which is larger than the rest of official reserves collectively, as well as national savings rate imbalance where Asia clearly leads.

As far as an international currency is concerned, unless and until the world recognises a global fiscal policy with a global tax, an international currency cannot work, according to Sheng.

IBM pays $10 million to settle Asian bribe





IBM has agreed to pay $10 million to settle charges it gave cash and gifts to Chinese and South Korean officials to win contracts for mainframe and personal computers and other products.

The agreement with the US Securities and Exchange Commission (SEC) calls for the US computer titan to pay disgorgement of $5.3 million, interest of $2.7 million and a civil penalty of $2 million.

Under the agreement, which is subject to court approval and was released by the SEC on Friday, IBM does not admit or deny the allegations it violated the Foreign Corrupt Practices Act (FCPA).

In the complaint filed with the US  District Court for the District of Columbia, the SEC outlined the accusations against IBM, which is based in Armonk, New York.

The complaint detailed instances of IBM Korea employees allegedly handing over envelopes filled with cash to South Korean officials in parking lots, providing them with free notebook computers, fiddling bid sheets and making payments to the bank account of a "hostess in a drink shop."

It said employees of IBM subsidiaries and a majority-owned joint venture provided cash and improper gifts, travel and entertainment to Chinese and South Korean government officials between 1998 and 2009.

From 1998 to 2003, employees of IBM Korea and joint venture LG IBM PC Co. paid $207,000 in cash bribes and gave improper gifts to South Korean government officials to secure the sale of IBM products, the complaint said.

It said that from 2004 to 2009, employees of IBM China provided overseas trips, entertainment and improper gifts to Chinese government officials.

"The misconduct in China involved several key IBM China employees and more than 100 IBM China employees overall," the complaint said.

IBM China employees "created slush funds at local travel agencies in China that were then used to pay for overseas and other travel expenses incurred by Chinese government officials," it said.

"In addition, IBM China employees created slush funds at its business partners to provide a cash payment and improper gifts, such as cameras and laptop computers, to Chinese government officials," it added.

"Deficient internal controls allowed employees of IBM's subsidiaries and joint venture to use local business partners and travel agencies as conduits for bribes or other improper payments to South Korean and Chinese government officials over long periods of time," the complaint said.

It said improper payments were recorded as "legitimate business expenses."

In a statement acknowledging the settlement, IBM said it "insists on the highest ethical standards in the conduct of its business and requires all employees to follow its policies and procedures for conducting business."

IBM shares were up 0.95 percent at$155.65 shortly before the closing bell on Wall Street.