Global Tech Race and India's Position

 

I. Summary

This briefing document summarizes key findings from the "Global Tech Race: India's Lagging Edge" article, which utilizes the Critical and Emerging Technologies Index to assess 25 countries across five critical technology sectors: semiconductors, AI, biotechnology, space, and quantum. The primary takeaway is that India significantly lags behind global leaders – the U.S., China, and Europe – across most of these strategically important technology sectors, with a particular weakness in semiconductor technology. The U.S. demonstrates broad dominance, while China is rapidly catching up in specific areas.

II. Main Themes and Key Insights

A. Global Leadership in Critical Technologies:

• U.S. Dominance: The United States holds a clear lead across all five critical technology sectors, particularly in AI, semiconductors, and space. This leadership is attributed to "deep investments, a strong research workforce, and a decentralised innovation ecosystem spanning government, academia, and industry."
• China's Rapid Ascent: China is a formidable competitor, actively "closing the gap, especially in biotechnology and quantum." Its progress is fueled by "centralised planning, scale, and state-led investments." However, China still faces challenges in "semiconductors and advanced AI due to dependence on foreign tools and weaker private research."
• Europe's Niche Strengths: Europe ranks third overall, showing "strength in biotech and quantum but falling behind in semiconductors and space."
• Strategic Importance of Sectors: The index assigns weights to sectors based on their "geopolitical relevance and dual-use potential." Semiconductors are deemed most critical (35%), followed by AI (25%), biotechnology (20%), space (15%), and quantum (5%).

B. India's Lagging Position:

• Overall Underperformance: India "lags significantly behind the top three — U.S., China, and Europe — across most technology sectors."
• Specific Ranking: India holds an overall index score of 15.2, placing it "below France and above Russia, Canada and Australia."
• Particular Weakness in Semiconductors: The title itself, "India trails in critical tech, particularly semiconductor tech," highlights this significant vulnerability. While the article doesn't provide India's specific semiconductor score, it implies a low ranking given the emphasis on its overall lag and the high weighting of this sector. Notably, "Taiwan, Japan and South Korea rank higher than Europe in this indicator," suggesting a highly competitive and specialized field.
• Space Sector Performance: In the space sector, India ranks "seventh," with Russia positioned third.

C. Factors Driving Performance in Key Sectors:

• Semiconductors: Analysis heavily weights "chip design, funding, talent, and manufacturing." Supporting roles are played by "equipment, materials, and regulations." The critical insight is that "no country has full control over the semiconductor supply chain."
• Artificial Intelligence (AI): Success in AI is primarily driven by "funding and talent," with "technical factors such as algorithms, computing power, and data" also playing a crucial role. "Regulation and global influence" are weighted lower. The U.S. maintains a "huge margin" lead, though China's "advantage in data and talent, along with model breakthroughs, signals a tightening race."
• Biotechnology: "Human capital, funding, and core capabilities such as pharmaceutical production, genetic engineering, and vaccine research" are the most heavily weighted pillars.
• Space: Key drivers include "funding, talent, and defence assets," followed by "launch capability, navigation, and telecom." "Global influence and regulation" have the least weight.
• Quantum: Performance is heavily influenced by "funding, talent, and core technologies," with "policy, global influence, and security" having less weight.

D. Importance of Partnerships:

• The U.S. leverages "partnerships with Europe, Japan, and South Korea" to "enhance its position, particularly in quantum and chips." This highlights the collaborative nature of critical technology development and supply chains.

III. Implications for Policymakers (Implicit)

The data from the Critical and Emerging Technologies Index, developed by the Harvard Kennedy School - Belfer Centre for Science and International Affairs, is designed to "allow policymakers to explore each country’s relative strengths and weaknesses across these sectors." For India, the findings suggest a need for:

• Targeted Investment: Prioritizing significant investment in key areas, especially semiconductors, to bridge the current gap.
• Talent Development: Focusing on attracting and retaining top talent across all critical technology sectors.
• Ecosystem Building: Fostering a robust innovation ecosystem that spans government, academia, and industry, potentially learning from the U.S. model.
• Strategic Partnerships: Exploring and strengthening international partnerships to gain access to expertise and supply chains, particularly in complex sectors like semiconductors.
• Policy and Regulation: Reviewing and adapting policies to support rapid technological advancement and competitive positioning.

IV. Conclusion

The global tech race is characterized by intense competition and strategic importance. While the U.S. holds a strong lead and China rapidly advances, India's current position as a "lagging edge" indicates a significant challenge. Addressing these deficiencies, particularly in the high-priority semiconductor sector, will be crucial for India's future economic and geopolitical standing.