America Fears Outsourcing R&D Jobs To India

The outsourcing debate doesn’t seem to die down as observers believe that while manufacturing and low-level service jobs are being moved offshore, it is widely assumed that Research and Development (R&D) jobs are not.

However after a newly published study, "Innovation Offshoring: Asia's Emerging Role in Global Innovation Networks", has begun to challenge these ideas.

According to Dieter Ernst, a senior fellow at the East-West Center, the US should focus on improving the domestic environment for innovation, rather than trying to slow down Asia's progress.

According to Ernst, stronger innovation capabilities in Asia create new markets for US firms. More importantly, he adds, "Asia's rise as a source of innovation creates a powerful catalyst for the US to strengthen its innovation system."