Which key technological sectors are most crucial, and how are countries performing within them?

The most crucial technological sectors are determined by their assigned strategic importance and weight within the Critical and Emerging Technologies Index. These sectors and their respective default weights are:

•Semiconductors (35%)

•AI (25%)

•Biotechnology (20%)

•Space (15%)

•Quantum (5%)

These weights are based on six criteria, including geopolitical relevance and dual-use potential.

Here's how countries are performing within these critical sectors:

•United States (U.S.):

◦The U.S. leads in all five critical technology sectors, with its dominance being most pronounced in AI, semiconductors, and space.

◦Its strategic advantages include deep investments, a strong research workforce, and a decentralized innovation ecosystem spanning government, academia, and industry.

◦The U.S. holds a clear lead in AI.

◦Its position, particularly in quantum and chips, is enhanced by partnerships with Europe, Japan, and South Korea.

•China:

◦China is actively closing the gap with the U.S., particularly in biotechnology and quantum.

◦Its progress is backed by centralized planning, scale, and state-led investments.

◦While China is closing the gap, it still lags in semiconductors and advanced AI due to a dependence on foreign tools and weaker private research.

◦China's advantage in data and talent, along with breakthroughs in AI models, indicates a tightening race in AI.

•Europe:

◦Europe ranks third overall among the top three leaders.

◦It shows strength in biotechnology and quantum.

◦However, Europe falls behind in semiconductors and space.

•Other Key Countries in Specific Critical Sectors:

◦Semiconductors: While the U.S. leads, no country has full control over the semiconductor supply chain. In this specific sector, Taiwan, Japan, and South Korea rank higher than Europe. The semiconductor analysis considers chip design, funding, talent, and manufacturing as highly weighted pillars, with equipment, materials, and regulations playing supporting roles.

◦Space: Russia is placed third in the space indicator, and India is seventh. The space analysis heavily weights funding, talent, and defense assets, with launch capability, navigation, telecom, global influence, and regulation also included.

◦AI: The U.S. leads by a huge margin, followed by China and Europe. The AI analysis emphasizes funding and talent, along with technical factors like algorithms, computing power, and data.

India, with an overall score of 15.2, significantly lags behind the top three—U.S., China, and Europe—across most technology sectors. Specifically, India trails in critical tech, particularly semiconductor tech.