Biomedical Engineering Reference
In-Depth Information
future success of US competitive advantage in the global knowledge
economy (Freeman, 2007). Overall, the global share of science and
engineering professionals is shifting away from the US, with more
opportunities for higher education and training opening up for
individuals worldwide (Freeman, 2007). Increasing numbers of
highly skilled professionals in locations outside the US are argued to
be affecting the traditional competitive advantage that has structured
trading relationships between the global North and the global South
(Freeman, 2007).
The governments of India and China have also recognized that a
large number of Indian and Chinese nationals have migrated to
places like the US in order to obtain better qualifications and job
opportunities than are available at home. Consequently these
governments have put programmes in place in an attempt to motivate
these skilled workers to return to the places where they were born
(Salter et al., 2006; Salter et al., 2007). Incentives like cheap home
loans, new laboratory facilities and cars are built into job offers in
an attempt to entice foreign-trained nationals to relocate. These
programmes are designed to build the local science and engineering
workforce in an effort to develop competitive advantage.
3.2.4 Taxationandbusinessrules
The taxation system and regulation of business development are also
further tools for policy development around innovation policy.
Favourable taxation strategies that encourage businesses to invest in
research and development have been in use in the OECD since the
1950s (Bozeman and Link, 1984). The use of the tax system to
generate increased investment in research and development is
sometimes referred to as an 'indirect' government support strategy
(Bozeman and Link, 1984). This is in contrast to 'direct' forms of
support like dedicated funding programmes (Bozeman and Link,
1984). One of the advantages of using indirect methods of
encouraging research and development activities is that they are not
limited by the availability of funding or pressured by different forms
of political will (Bozeman and Link, 1984).
