Category Archives: Economics

Posts exploring the economic impacts of science and engineering. The value of strong science and engineering practice has many benefits to the economy – directly and indirectly. Many countries are focusing their future economic plans on advancing their scientific, engineering and technology communities and creating environments that support scientists and engineers.

China and USA Basic Science Research

US$425 million to boost Chinese innovation by Fu Jing:

The National Natural Science Foundation of China will provide 3.4 billion yuan (US$425 million) in funding for basic science, it announced last week (25 May).

“The boost has shown the government’s determination for China to become an innovative country by 2020,” said the foundation’s vice-president Zhu Zuoyan. He added that the foundation’s research funding is set to grow by about 20 per cent a year for the next five years.
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According to government plans, China’s total investment in science and technology should reach 2.5 per cent of its gross domestic product by 2020 — a share similar to that spent by industrialised nations.
By that time, China aims to be spending about US$112 billion annually on research and development (see China announces 58-point plan to boost science).

U.S. National Science Foundation Celebrates Opening of Beijing Office

The National Science Foundation is a U.S. government agency that supports fundamental research and education across all fields of science and engineering, with an annual budget of $5.58 billion.
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According to the NSF report, Science and Engineering Indicators 2006, China ranked fourth in the world in the year 2000 in research and development, with $48.9 billion in expenditures. Two years later, the country ranked third, behind the United States and Japan, spending an estimated $72.0 billion on R&D.

“It is important for the U.S. scientific community, especially young researchers, to be aware of and consider collaborating with colleagues in China in this environment,” said Beijing office Director William Chang.

The NSF Beijing Office is NSF’s third foreign office. NSF also maintains research offices in Paris and Tokyo.

House Testimony on Engineering Education

Testimony of Vivek Wadhwa to the U.S. House of Representatives Committee on Education and the Workforce,
May 16, 2006.

Vivek Wadhwa has continued the work published in the Duke study: Framing the Engineering Outsourcing Debate. In the testimony he provides an update on the data provided in the report.

Contrary to the popular view that India and China have an abundance of engineers, recent studies show that both countries may actually face severe shortages of dynamic engineers. The vast majority of graduates from these counties have the qualities of transactional engineers.

Differentiating between dynamic and transactional engineers is a start, but we also need to look at specific fields of engineering where the U.S can maintain a distinct advantage. Professor Myers lists specializations such as systems biology and personalized medicine, genomics, proteomics, metabolomics that he believes will give the U.S a long term advantage.

Our education system gives our students broad exposure to many different fields of study. Our engineers learn biology and art, they gain significant practical experience and learn to innovate and become entrepreneurs. Few Indian and Chinese universities provide such advantages to their students.

The dynamic and transactional differences were mentioned in his business week article: Filling the Engineering Gap.

The conclusion he presents seems wise to me.

The numbers that are at the center of the debate on US engineering competitiveness are not accurate. The US may need to graduate more of certain types of engineers, but we have not determined what we need. By simply reacting to the numbers, we may actually reduce our competitiveness. Let’s better understand the problem before we debate the remedy.

Mexico: Pumping Out Engineers

Mexico: Pumping Out Engineers

Currently, 451,000 Mexican students are enrolled in full-time undergraduate programs, vs. just over 370,000 in the U.S. The Mexican students benefit from high-tech equipment and materials donated to their schools by foreign companies, which help develop course content to fit their needs. Many of these engineers graduate knowing how to use the latest computer-assisted design (CAD) software and speaking fluent English.

Another country on the engineering education bandwagon for economic growth.

Those figures are quite impressive. I would like to see what Vivek Wadhwa (one of the authors of the Duke study: USA Under-counting Engineering Graduates) says about the comparability of the figures. Still, the number of engineering undergraduate students in Mexico surprises me; this is one more indication of how many people see the value of engineering education.

Related:

Science Education and Jobs

Education Seeds the Ground Science, Technology Meet Light Spectrum by Chris Brunson is well worth reading:

“The course was designed specifically for adult learners and had the challenge of putting a lab-based course online,” said Fenna Hanes, NEBHE senior director, office of programs. “The audience was high school, community college and some four-year college faculty from both science and technology disciplines including physics, chemistry, math, electronics, telecommunications and engineering technologies.”

This article explores another example of NSF funding innovative projects to support science and engineering education – PHOTON2 Program Overview. And the article goes on to explore other activity by institutions building off that work.

In addition to providing photonics technology training to traditional community college students Three Rivers Community College (TRCC) has provided incumbent workers training…
The training was a combination of on-site as well as on-line education.
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Companies in the region regularly call Judy Donnelly, program coordinator of photonics programs, Three Rivers Community College in Norwich, and Nicholas Massa, professor of laser electro-optics technology at Springfield Technical Community College (STCC).

Both get similar calls, quite regularly from companies, with the query: “I need people, I want to hire techs, do you have any students I can hire?” Even on company field trips, the almost-grads of both colleges are asked if they want to come to work for the corporations, that are growing and need skilled, educated people.

“Donna Goyette at Ellis Tech (H.H. Ellis Technical High School, in Danielson) is creating a full-year optics course for her seniors,” said Donnelly. “She is doing a fantastic job. Since they are not far from IPG Photonics in Mass., it also works out to be a good collaboration.” IPG Photonics, incidentally, has hired a number of graduates and student interns from the laser electro-optics and photonics programs at STCC and TRCC over the past several years.

Advances in technology require novel approaches to education.

Related Posts:

The Economic Benefits of Math

The crisis in maths in Australia by J Hyam Rubinstein:

The rapid economic reconstruction of Japan after the war was remarkable. A major feature was adoption of ideas of the great American statistician W. Edwards Deming on quality control and efficiency of production processes. In the United States Wal-mart, the retail giant, has a superb supply chain system, which is a key part of cost control. In Australia BHP Billiton has estimated that its group of mathematical scientists have saved the company several hundreds of millions of dollars in costs in a single year.

On our Curious Cat Management Improvement blog we post frequently about Deming’s ideas.

Most countries in the world, except for the poorest, give special attention and support to the mathematical sciences. For example, in the US, the National Science Foundation has instituted a number of programs to increase the supply of both mathematicians and statisticians. China and India stand out as emerging powerhouse of mathematical skills and the innovative technologies that will emerge from this investment.

Australia is an exception. We are in the midst of a national review of the mathematical sciences that will be completed in mid-2006. The international reviewers have been travelling across Australia. It is no exaggeration to say that the nation is facing a very serious situation.

As we have stated in previous posts the macro-economic impacts of government policy relating to science and math can be large:

Universities Focus on Economic Benefits

In the USA, Georgia Tech Focuses on Competitive Challenges

A leader in science and engineering education and with a research program totaling more than $400 million per year, Georgia Tech is a major developer of science and technology innovations. Building on these new technologies and collaborating with like-minded organizations, the Enterprise Innovation Institute will work with the private sector to apply innovations to real marketplace needs

and in India, Innovation through industry-academia tie-up

The Samtel Display Technology Research Centre at IIT Kanpur, the Micro-electronics Research Centre funded by Semiconductor and EDA companies at IIT Kharagpur, the Automotive Research Centre at IIT Madras, IBM’s Research Lab at IIT Delhi and the HP Lab at IIIT-Bangalore are examples of academia-industry partnerships.

Engineering the Boarding of Airplanes

Airlines Try Smarter Boarding

“An airplane that spends an hour on the ground between flights might fly five trips a day,” he explains. “Cut the turnaround time to 40 minutes, and maybe that same plane can complete six or seven flights a day.” More flights mean more paying passengers, and ultimately, more revenue.
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Convinced that there was a statistical solution to the problem, Lindemann approached Arizona State University’s industrial engineering department. “We have a great university in our backyard, and hoped they could help,”
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Professor René Villalobos and graduate student Menkes van den Briel began reviewing boarding systems used by other airlines. “The conventional wisdom was that boarding from back to front was most effective,” says van den Briel. The engineers looked at an inside-out strategy that boards planes from window to aisle, and also examined a 2002 simulation study that claimed calling passengers individually by seat number was the fastest way to load an aircraft.

The two then developed a mathematical formula that measured the number of times passengers were likely to get in each other’s way during boarding. “We knew that boarding time was negatively impacted by passengers interfering with one another,” explains van den Briel. “So we built a model to calculate these incidents.”

Villalobos and van den Briel looked at interference resulting from passengers obstructing the aisle, as well as that caused by seated passengers blocking a window or middle seat. They applied the equation to eight different boarding scenarios, looking at both front-to-back and outside-in systems.
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Villalobos and van den Briel presented America West with a boarding approach called the reverse pyramid that calls for simultaneously loading an aircraft from back to front and outside in. Window and middle passengers near the back of the plane board first; those with aisle seats near the front are called last. “Our research showed that this method created the fewest incidents of interference between passengers,” Villalobos explains, “and was therefore the fastest.”

A nice example of industrial engineering. And a clear example of the benefit of industry higher education cooperation.

America’s Technology Advantage Slipping

A Red Flag In The Brain Game.

The 30th Annual ACM-ICPC World Finals sponsored by IBM were held in San Antonio this April: view results.

Of the home teams, only Massachusetts Institute of Technology ranked among the 12 highest finishers. Most top spots were seized by teams from Eastern Europe and Asia. Until the late 1990s, U.S. teams dominated these contests. But the tide has turned. Last year not one was in the top dozen.

As an indicator this is a minor one. But it is one more indication that indeed the tide is turning. The results seem worse based on “The 83 teams who competed in the World Finals are made up of 22 North American teams, 3 teams from Africa/Middle East, 7 from Latin America, 22 from Europe and Russia, and 29 from the Asia/South Pacific region.” So the USA had close to 20% of the participants and only 1 of the top 38 teams (Canada had at least 4 in the top 38). The USA had 5 of the 17 teams tied for 39th place.

The poor showings should serve as a wake-up call for government, industry, and educators. The output of American computer science programs is plummeting, even while that of Eastern European and Asian schools is rising. China and India, the new global tech powerhouses, are fueled by 900,000 engineering graduates of all types each year, more than triple the number of U.S. grads. Computer science is a key subset of engineering. “If our talent base weakens, our lead in technology, business, and economics will fade faster than any of us can imagine,” warns Richard Florida, a professor at George Mason University and author of The Flight of the Creative Class.

Again results of two years of this programming challenge are hardly a significant indication. Still if there was any field that Americans felt they still felt they were dominant in it would likely be programing (maybe health care – what do you think?). Given that this seemed at least worth a post in our blog.

It is also interesting to note, this Business Week article uses the “China and India, the new global tech powerhouses, are fueled by 900,000 engineering graduates of all types each year, more than triple the number of U.S. grads.” stats even though this article specifically tracks a Duke team and Business Week published several articles on the Duke study, USA Under-counting Engineering Graduates, that refutes those numbers.

Related Posts:

USA Innovation Lead Challenged

U.S. Tech Lead Challenged by Globalization of Innovation by George Leopold

The exodus of much software development has proven to be a lightning rod in the U.S. debate over outsourcing. But an expert at the symposium said the U.S. remains the clear innovation leader in terms of patents. Chris Forman of Carnegie Mellon University said software services are being outsourced, mostly to India, while innovative database and office automation software continues to be written here.

That could change, however, if the steady decline in federal research dollars continues along with the decline in U.S. computer science graduates, Forman said.

For now, the experts concluded, America retains the keys to innovation. The question, they added, is for how long?

Related:

Singapore woos top scientists with new labs

Singapore woos top scientists with new labs, research money by Paul Elias:

Singapore’s siren song is growing increasingly more irresistible for scientists, especially stem cell researchers who feel stifled by the U.S. government’s restrictions on their field.

Two prominent California scientists are the latest to defect to the Asian city-state, announcing earlier this month that they, too, had fallen for its glittering acres of new laboratories outfitted with the latest gizmos.

They weren’t the first defections, and Singapore officials at the Biotechnology Organization’s annual convention in Chicago this week promise they won’t be the last.

Other Asian countries, including Japan, South Korea and even China, are also here touting their burgeoning biotechnology spending to the 20,000 scientists and biotechnology executives attending the conference.
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In all, the country has managed to recruit about 50 senior scientists — far short of what it needs, but a start for a tiny country of 4.5 million people off the tip of Malaysia.

Another 1,800 younger scientists from all corners of the world staff the Biopolis laboratories, which were built with $290 million in government funding and another $400 million in private investment by the two dozen biotechnology companies based there. Biopolis opened in 2003 and contains seven buildings spread over 10 acres and connected by sky bridges