We know that manufacturing jobs are being exported. But, now the R&D is being exported, too. Not only because the US is not producing fantastic scientific and engineering talent, but to afford corporations the ability to tailor their products to the overseas markets…plus, this curries favor with foreign governments by opening R&D centers in their lands. 
The US National Science Board (part of the National Science Foundation) reported that US multinationals have grown their R&D employment tallies overseas- with 85% of all new jobs being located outside the US. Right now, the total employment in US R&D activities is 73% of the total overall (down from 84% in 2004). Before you jump up and down, consider this fact- more than ½ of the engineering degrees being awarded are from Asia (56% in 2008) and only 4% graduate from the US- and that does not include the fact that more than ½ the PhD degrees granted in the US are awarded to foreign students (57%).
These numbers mimic our high-tech (aerospace, medical, pharmaceuticals, communications, and computers) manufacturing efforts as well. Since 2000, the employment in this sector has dropped from 2.5 to 1.8 million. And, it’s not just the recession- it’s because China (and other Asian countries) are growing their ability to make these wares. We still spend tons on R&D- some $ 400 billion- which is way more than the European Union ($ 300 billion), but not much more than the ‘Asia-10’ (China, India, Japan, as well as Taiwan, South Korea, Philippines, Singapore, and Thailand) which rang up a $ 399 billion total.
And, then we come back to a little known fact. That while large companies are operating overseas and bringing their R&D there, that’s not what small companies are doing. The microbusinesses within the biotech, internet, and computer sectors, those with five or fewer employees, are the ones which are developing the new industry leadership. And, they were growing through 2010. (Yes, through the ‘Great Recession’.) If the credit crunch did not kill them, they can point to our future- if we change the trend in our education of sci-tech professionals. Soon!
Perhaps also because in some cases companies can get away with experiments in Asia that they would be in trouble for in the USA or Europe.
David @ Zoomit recently posted..Should you keep your winners and sell your losers?
That could possibly apply for pharmaceutical and medical devices… But, those experiments could never be employed for approval here in the States- or in Europe, either. I think that might have been a concept 30 years ago, but not in recent years, David. But, I don’t claim all knowledge about the various firms effecting R&D overseas.
Thanks for making me worry!
Roy
It looks to me that the solution to this problem is easy to implement. US government should redirect their investment to small micro business and encourage R&D in those fields. That would be a way to produce more jobs. Quantity could seem low at the beginning but, since they are self sustained, it could produce a “virtuous circle”.
Gustavo| Frugal Science recently posted..Spot your addiction and enjoy life.
Ah, Gustavo, that is such a grand idea! The concept already exists, in that the government has set asides. The issue- they are either unfunded = or the government agencies find ways to circumvent them and offer those incentives to larger firms or universities…
Roy
All these big corps are just worried about wall street. They just want to please wall street quarter after quarter. Thats the reason jobs, r&d are moving out but company pockets are getting bigger n bigger.
Let’s say you are correct, for a second. Why would Wall Street want R&D to move overseas? Using your logic, they would want R&D to cease overall, if results are not imminent, but I don’t see them demanding R&D move overseas without further information.
I do agree that corporations are being run by short-sighted, self-aggrandizing individuals who know that quarter profits are how they get their ridiculous bonuses and not for long-term or viable corporate performance- their bonus is tied to the stock price.
Roy