Chinese and Indian Entrepreneurs Are Eating America's Lunch

Watch out, Silicon Valley: China and India aren't just graduating bad engineers and stealing intellectual property anymore. They're fostering innovations that will shake the world.

BY VIVEK WADHWA | DECEMBER 28, 2010

Earlier this month, Americans woke up to the bad news that their education system was just "average" in the developed world. Worse news, however, was that Shanghai, China took the top spot. For a country already in a declinist mood, this was a blow. Perhaps not even U.S. President Barack Obama thought the future would arrive so quickly: As he told a group of educators at the White House earlier this year, the "nation that out-educates us today is going to out-compete us tomorrow." 

America is rightfully worried about its sinking competitiveness, and does indeed need to improve its education system. But it could win the battle and lose the war, because India's and China's successes aren't due to their education systems, but despite them. You've probably heard of Indian outsourcing hotspots like Bangalore and Chennai, but it's not just call centers and software sweatshops Americans now need to worry about: Technology entrepreneurship is booming all over in China and India, and is beginning to innovate; these startups will soon start competing with Silicon Valley. The next Google could well be cooked up in a garage in Guangzhou or Ahmedabad.

Indian and Chinese children are very much like their counterparts in the United States -- intelligent, open-minded, and motivated to change the world. They receive poor education on average, but many are able to rise above that. And the United States is giving an unintended boost to these countries by sending away highly educated skilled foreign workers.

India and China now graduate three to six times more engineers than does the United States. The quality of these engineers is, however, so poor that most are not fit to join the workforce; their system of rote learning handicaps those who do get jobs, so that it takes two to three years for them to achieve the same productivity as American graduates. As a result, significant proportions of China's engineering graduates end up working on factory floors; Indian industry has to spend large sums of money on retraining its employees, as my research team at Duke and Harvard learned.

Despite this, India has built a $73 billion-per-year information technology service business and has been offering IT services of steadily increasing sophistication. Its engineering R&D industry is now a $10 billion business -- a three-fold increase in four years. It develops sophisticated products for Western firms in the aerospace and automotive industries, and in telecommunications, semiconductors, consumer electronics, and medical devices. And most significantly, there are thousands of new startups that are building web technologies, clean-tech products like low-power lighting, and mobile applications.

China has built world-class universities and state-of-the-art research facilities. The numbers of papers its faculty members publish and patents its researchers file are increasing dramatically. But these numbers are deceptive, as the patents and papers are largely plagiarized or irrelevant. There is also practically no innovation coming from the state enterprises that dominate industry. The big change that has occurred in China, however, is the emergence of technology startups: thousands of them, just as in India.

The first generations of Indian startups focused on selling IT services, and the Chinese developed copycat web technologies such as Baidu, China's Google rival, and Sina, its Twitter clone. But they are going beyond that now. They are gaining the knowledge -- and developing the confidence -- to create innovative products, not only for domestic markets, but also for global ones.

JEWEL SAMAD/AFP/Getty Images

 SUBJECTS: CHINA, EDUCATION, INDIA, BUSINESS
 

Vivek Wadhwa is a visiting scholar at University of California at Berkeley, director for research at the Pratt School of Engineering at Duke University, and senior research associate at Harvard Law School.

MALICEIT

7:41 PM ET

December 28, 2010

already happened.

...nothing to see here

 

GEMINIEBONYJONES

5:03 PM ET

December 29, 2010

Never in a milli...........

The next Google found in a garage in China

You have to analyze more than just SATs and college graduates
You can't tech someone how to hack, but you can tech them to code
The people who start successful startups build them not to become giant bureaucrats
They do it because they love to do it

There is to many layers of old world politics to deal with in China, and India
Censorship, Pork, Muslims, Untouchables, etc...
Now I do believe Indians, Chinese, Russians, Brazilians, Norwegians will come to America and build successful startups or join successful startups
But I don't think Silicone Valley has anything to worry about from Third World countries

Silicone Valley is the future, get on the bus

 

MEGAKIDS

11:52 AM ET

December 30, 2010

Wake Up, MR GEMINIEBONYJONES !

Hey Jones, you are still in deep sleep. No wonder having such a dream! Wake Up!

BTW, it's "Silicon Valley", not "Silicone"!
Silicone is for your breast implant! Don't think Google find that useful for their start-up!

 

ASJAHMED

6:12 PM ET

December 30, 2010

Silicone Valley

He meant Hollywood, of course ...

 

ANON45

9:28 PM ET

December 28, 2010

Old news, leave us alone.

We are already in decline, stop writing articles pretending we are still a power, or that we really matter now.

Leave us alone to sort our own problems out, and Instead of comparing China and India to a has been, compare them to each other.

We should cut all military alliances, disband the military except for a select few units that will act in a domestic capacity (likely the national guard),as was intended by our forefathers and stop sticking our nose in the rest of the world.

Who cares if who we get our shirts from commits genocide? It isn't our place to safeguard other's rights, it's theres. It is our to safeguard our own. These are in plenty danger as it is. Such a pragmatic attitude and withdrawal will ensure good relations between many former enemies.

That said, I'd also say to default on all foreign debt. We've already broken military agreements, it won't matter so much if we break economic ones.

The rest of the world can ignore a 300million consumer market at their own peril, and it will free up areas for our own people to work in, truly making us self-sufficient once again.

With money saved we should invest in education, and more importantly, in r&d.

 

TCH

10:40 PM ET

December 28, 2010

Good point

But ethics do matter just look at the 2007/2008 financial collapse.

 

DR. JONES JR.

1:10 PM ET

December 29, 2010

What?

That isolationist (not to mention prematurely defeatist) rhetoric really worked well for us in the lead-up to WWII, didn't it?

That said, balance in all things is a good thing. And the US is definitely not in balance with regards to its overseas commitments. Cutbacks, yes. Wholesale retreat from the world at large? You must be crazy. You're advocating that we take the reverse of the path that the Chinese, Indians, and others are taking to world relevancy.

 

STRATEGOS307

1:26 PM ET

December 31, 2010

some Isolationism would help

Without becoming extreme about, some isolationism right now would help balance things out. To the reader that rebuffed the idea on the grounds of isolationism and what it did in WW2 - there are different ways of looking back at history. In fact it was a healthy dose of isolationism that lifted up America to a superpower - as it joined WW2 when everyone else was worn down by it, and ended up the sole victor on the field. Consider even further, if US did not take Germany out right away, safeguarded Europe, but allowed Germany to fight Russia for a while longer - Russia would have spent all of it's military reserves and the Cold War could have been avoided too. Overextension is just as bad as over-isolationism. Balance in everything.

If we reduce our overextension now, we in fact would be closer to what the rising powers are doing, not the opposite! China, India and others are focused on their internal development of research, education and infrastructure science. We're still hanging on to the Cold War era idea that if we "just beat the bad guys", then we can "make everything good everywhere". The longer we hold on to it, the more it will hurt us.

 

ALEXBC

1:17 AM ET

December 29, 2010

This seems like a bland

This seems like a bland article with little factual support or specific examples; the point seems to be nothing more than "there a lot of startups around India and China."

Furthermore, it buys right into the PISA nonsense, which is thoroughly debunked here:

http://www.newgeography.com/content/001955-the-amazing-truth-about-pisa-scores-usa-beats-western-europe-ties-with-asia

America has apparently been in decline for 234 years. But as always, the script needs to be reinvented so as not to be tiresome.

America is going to be fine...

 

JEFFERSON

6:26 AM ET

December 29, 2010

Quality or quantity?

Are we talking about quality or quantity of education? Over here in Germany, media are constantly complaining about the oh-how-horrible-compared-to-everybody-else education.

How is Germany doing these days?

And: no, Germany is not doing well because of good education - it is doing well despite its flawed, ancient, backwards-oriented, ideologically polluted, anti-individualistic, anti-capitalist and feminized educational system. It is doing well because it has not outsourced itself to China or India. In Germany, 30% of GDP is still industrial production (20% in the USA).

I lived in Eastern Europe once before the Iron Curtain fell. I joined math olympics and other educational drill. However, people who did well on that are nobodies today. Obviously, drill and memorization is not the best receipt.

America is not in danger because Americans are being overrun by brilliant Chinese and Indian geniuses. It is in decline because of it stupid bi-partisan system that is becoming more and more populist just like most European countries. What are American values these days? Security junk and populist propaganda (political correctness) seem to swamp the mainstream media. Give me a break.

 

ROBERTGW

11:14 AM ET

December 29, 2010

Hyperbole and Lunch Aside...

It has been inevitable that the margin of development achieved by the US after WW II would diminish, and it is heartening that nations that heretofore could not feed their people are now ascending toward economic parity with the US. This does not speak of a US disease but merely of a leveling of the playing field. And, let us not forget that this leveling of the playing field was precipitated by the good world governance promoted by the Pax Americana and by the openness of the US market. Any concerns about the health of entrepreneurialism should lie in the minds of the leaders of those nations where there is rampant abuse of intellectual property, wide-spread institutionalized corruption and governments that exert significant influence over the picking of winners and losers. The concern of the larger world should be as to how (and whether possible) to maintain the good world governance that has promoted the emergence of these new economies in a new multi-polar world where there are major players who lack respect for human rights and who pursue a zero-sum games in the pursuit of their nationalist ambitions

 

STRATEGOS307

1:45 PM ET

December 31, 2010

on Pax Americana

Pax Americana was our mistake. While are spending a lot of our resources keeping the peace in the world, the real beneficiaries are the developing countries. They are growing up to be serious competitors, first in the economic realm, and the military realm is sure to follow. Do you seriously think China will be happy letting our navy dominate the seas of the world?

If you dream of a world brotherhood of nations when "everyone will just get along", please remember this has NEVER happened in the history of Man. Probably for a good reason - probably because it is contrary to the core nature of Man. And if you do insist on dreaming of it, at least consider it might not be wise to make ourselves vulnerable to rising competitors, while we're busy dreaming.

 

FAIRANDBALANCED

11:30 AM ET

December 29, 2010

Nonsense

This is just pure hot air. They are not eating our lunch. More like scrambling for scraps thrown from our R&D table.

Name one dazzling innovation from either of those two countries. Okay, forget "dazzling" - just name any.

However, this does not mean that the author's scenario couldn't play out in the future. But right now (and for the immediate foreseeable future as well), they still belong in the junior league.

 

DR. JONES JR.

12:58 PM ET

December 29, 2010

Hmm...

How about the ultra-cheap Nano car, invented and produced by Indian car-maker, Tata? It doubtlessly required multiple innovations to reach such a low price point. I expect a lot more such innovation aimed at "the bottom of the pyramid" from them; doubtlessly there are many other examples (which I've seen cited in other articles--too lazy to go hunt them down).

As for China, their method for maintaining a railroad across the permafrost of the Tibetan Himalayas should definitely count as a dazzling innovation. Most engineers from elsewhere said this couldn't be done. We have yet to see if this will remain viable long-term, but thus far the railway seems to have avoided the calamity everyone had predicted.

For that matter--and as much as I hate it--the Great Firewall of China demonstrates quite a bit of innovation. True, they've basically just thrown tons of resources at the problem; such state manhandling isn't the most efficient form of innovation. But innovation it should be called nonetheless. Authoritarian states around the globe look to China in innovating the technology of repression.

 

CIENDOLOR

8:25 PM ET

December 29, 2010

innovation

Umm, well, let me see. Does taking out a suborbital satellite using a missile with pinpoint accuracy count?

 

WATTY

2:15 PM ET

December 29, 2010

Is Wadhwa bluffing his way to fame?

Mr. Vivek Wadhwa glaring insincerity seems to come through loud and clear from this irksome little article he has penned. Having benefited himself and his career greatly in the US he now seems to be casting his sights across the ocean to butter China's thick slice of bread and for a good measure India's measly crumbs too. By any measure the US still towers high above the newly rising giant China. True, we are facing some very difficult challenges, but if there is any nation on Earth whose citizens can come together and pull themselves out of even the most intractable of problems, it is USA. Mr. Wadhwa should know this better than most considering the strength of the American institutions that enabled his success by fostering his own efforts, skills.and achievements.

 

CIENDOLOR

8:27 PM ET

December 29, 2010

Yikes!

Give the guy a break. It's just a little article of no further consequence.

 

DDSNAIK

5:10 PM ET

December 29, 2010

... and there's the Rah Rah contingent

I was wondering when someone would bring that up...

 

BENJAMINFRANKLIN

6:08 PM ET

December 30, 2010

Politics in education, regression to the mean, etc.

I don't see any real facts being offered in proof of the thesis. In my opinion, the culture of the US is more entrepreneurial than that of the rest of the world.

I would point out that a problem with our educational system is that it is governed by democratically elected committees, which enables backward parts of the United States, such as Texas and Kansas, to legislate absurd content in the curricula. Witness the fact that 40% of the American public doesn't believe in evolution.

Of course, the US is bound to become less outstanding compared to the rest of the world, because Europe has recovered from WWII, and the developing world is making progress in education. Even though I am only 60 years old, I can remember a Europe in which bicycles were the common mode of transportation of the majority of workers, and radios and refrigerators were considered luxury goods. In statistics, the concept is called regression to the mean.

 

ASHIRAZ

6:46 PM ET

December 30, 2010

Perhaps No Need For Alarm?

Perhaps we could try to have a belief in plenitude? No one is eating anyone's lunch or food, all you need to do is learn from others and reform yourselves and not hold others back or be alarmed by their rise. We could be glad that poor countries are rising and learning and becoming like us. We will have allies and friends and we will have someone who can innovate when we are ourselves bogged down by misfortune. One hopes the Chinese and Indians will love us and be kind to us; if not we ought to be kind and loving nonetheless: that is the western way!

 

STRATEGOS307

8:41 PM ET

December 31, 2010

amazing

you're suggesting, let us put our heads under the guillotine, and hope that the executioner will be our friend and not pull the lever? Once these countries become powerful, they will be not our "allies and friends" but fierce opponents. This is the nature of Man; it is inevitable.

What we can do is make sure our strategic position is less assailable.

 

AMERICANMADE

10:52 PM ET

December 30, 2010

no way jose

India has a caste system . .. . China has very limited true free speech. . . .Both have cheap labor

Many have tried to copy Silicon Valley. . Many have failed. . . .SIlicon valley is the right mixture of :

Hi tech Mfg. . .Freedoms. . . High quality of life. . .Safety .. Rule of law. . . IP protection. . Skilled labor force. . Stanford and UC berkeley close by. . . . non discrimination in the work place laws. . .. US Immigration. . . .Perfect weather almost year round.

And let us not forget about the capitalist drive by the plethra of billion dollar corporations in the area. . . .It is also diversified between semi, photonics, material science, software, telecom, R&D, Custom machine shops. . etc. . etc. . etc .. . . .Silcon Valley is a culture. . Not a creation you can engineer or create easily.. . .. .I do not believe you can create this kind of environment elsewhere. . . .That does not mean you can't have individual discoveries in other countries .. . . You just can't have a million people act like they do in Silicon Valley.

 

FOODANDART

2:27 PM ET

December 31, 2010

foodandart

Terrible roads, a crumbling state infrastructure, budget deficits and a fleeing population.. Yup. Silicon Valley is about the ONLY thing to recommend California.

 

KCISOBDERF

3:11 AM ET

December 31, 2010

Indian and Chinese "Competitiveness"

Hey, idiots!

Remember when Russians graduated more engineers in the '60s, and Japanese in the '80s? Where are they now? The mass produced "elite" Indian and Chinese students master their subjects by rote. A nation cannot generate instant innovation and entrepreneurial drive. It can only foster an economic environment where young people grow, learn, and invent under their own power and interests. New Math didn't do us any good.

Try working with outsourced and H-1B "colleagues". You'll find a few who know what they're doing. The rest got their positions only with the help of avaricious American executives trying to save a buck.

Rather than panicking government and educators, try writing about the *real* source of temporarily lacking U.S. students; greedy executives and corporations laying off wage earners and destroying neighborhoods, cities and, states by outsourcing tech jobs. And if you want to actually educate yourselves about how knowledge and innovation happens, look up the biographies of Gene Amdahl, and Seymour Cray, among others.

*NO* directed education program, by India, China, or the US can create such people. They came from middle class families whose circumstances got better from their own efforts, in a society where everyone had a chance to earn a good living.

Japan had a 5th Generation Computer initiative. It went nowhere! India and China will do no better.

 

MJ2011

6:45 AM ET

January 1, 2011

Agree completely

When you're dealing with a dearth of critical thinking skills, common sense and inability to trouble-shoot and problem solve because these traits are not part of the culture nor taught in their educational systems, you can't expect much for your seemingly cheap expat buck. When it comes to outsourcing, you get what you pay for. I've seen too much come back from Bangalore tht had to be re-coded, re-written or just re-done! After experiencing the incompetence first hand - barring a few as you correctly mention - and seeing the decline of productivity, deliverability and quality thanks to outsourcing, it's one of the worst business policies the US corporation has ever stupidly embraced. The increase in H-1B immigrants - especially those who show up not able to communicate effectively in English - has dumbed down the US work environment to let the ''rest of the world catch up'' as one former EU colleague informed me.

Shut the US borders for awhile, let ICE do their job and deport every expired green card/visa/illegal, bring home manufacturing (to give our 40million unemployed a job) and let's get back to being self-sufficient again. I'm so bored w/the PC fallicy that Americans are less educated/intelligent than these other folks are - what a crock! Maybe Mr. Wadhwa needs to head back to India and he can try to eat our lunch. I doubt we'll be eating chapatis in bulk anytime soon!

 

INJUN_NC

9:13 PM ET

January 1, 2011

Smug Mr. KCISOBDERF

Mr. Wadhwa's silly panic-mongering notwithstanding, I do not understand the reason for Mr. KCISOBDERF's smugness.

While India and China have a long way to go before they truly become technology powerhouses and threaten our current supremacy -- we must not wait around for a second 'sputnik' moment to get our rear in gear. For, unlike the Soviet Union/Russia then, we are now dealing with two countries that between them make up 37% of humankind against our 4.5%. The two Asian giants are on the move and, given the numbers arrayed against us, it would be wise to assume that the odds do not favor us.

Consider the following:

1) From 1625 until 1875 China and India were the world's two top economies....China being number 1 followed by India at number 2 (excepting for a brief period between 1675 and 1700 when India took the number 1 spot pushing China to number 2);

2) The two countries have a history of innovation and discovery that spans over four thousand years;

3) Some seminal breakthroughs in Science and Math were made by ancients in these two countries -- some of which were only replicated in Europe a thousand or more years later;

4) Unlike our country, the tradition of higher learning is greatly respected and deeply rooted in the cultures of China and India;

5) Immigrants from China and India continue to contribute disproportionately to the sciences and the arts in the US of A;

6) It is estimated that 33% of all start-ups in OUR Silicon Valley are founded and led by either an Indian or a Chinese entrepreneur;

7) This is replicated across all high-tech geographies in the USA -- with ex-pats from these two countries occupying critical leadership positions in our marquee companies/organizations like Microsoft, Google, and NASA (to name just a few);

8) Cross-pollination among ex-pats from India and China with their brethren in the old countries continue to increase exponentially;

9) Just like one cannot coach height in Basketball, one cannot out compete overwhelming numbers -- especially, if they are aligned properly against one. Both India and China are slowly getting their houses in order. Keep in mind, their economic booms are a result of economic policies introduced in the past 2 to 3 decades. China unshackled its economy in the 1980s with India following in the 1990s;

10) Neither Russia nor Japan (the two countries cited by Mr. KCISOBDERF) can boast such sustained and impressive history of performance (or raw population numbers of China and India). Hence, their examples are misleading;

Having said that, we still have the advantage of a great lead at the moment. Let's not squander it. We can still pull together and maintain our leading place under the sun if we truly take the time to understand the ground realities.

Given the past history, it is just a matter of time that these two countries could surpass us -- especially, if we continue to have misplaced priorities (e.g., foolish foreign wars, policing the world, ignoring our schools, and disproportionately rewarding non-productive professions like bankers, lawyers, and con-men, etc.).

Shaking off our smugness and our belief in our 'exceptionalism' would be a great first step.

 

RAGINGJD

11:50 AM ET

December 31, 2010

"nation that out-educates us

"nation that out-educates us today is going to out-compete us tomorrow."

And yet our government continues to hand out Pell grants and college loans so students can get worthless degrees in ethnic and gender studies, public policy and social work. You can bet China and India aren't bankrolling this sort of nonsense.

If the President truly wanted the US to compete in a global society, government financed college loans and grants would be limited to needed professions (genetics, engineering, medicine, technology, etc).

 

MJ2011

6:50 AM ET

January 1, 2011

Amen

Except this current president doesn't want us to compete. If he did, he wouldn't bankroll failing companies with our tax dollars nor would he try to devastate one of the most lucrative and well-paying industries the US still relies on - petroleum. I agree with you completely on the need to focus on funding value-added curricula. But then again, look at who now controls the educational system - our feel-good, left-wing liberal friends who don't exactly understand the concept of competitiveness and economic strength and independence.

 

OLIVER CHETTLE

12:30 PM ET

January 12, 2011

Oil is an old industry, and

Oil is an old industry, and the US is a net importer. The oil industry is a massive drain on the United States. There isn't a single country on earth that would benefit more from its destruction.

 

MURALIY

12:35 PM ET

December 31, 2010

"They are returning because

"They are returning because of frustrations with U.S. visa policies that make it extremely difficult for skilled workers from high-population countries to obtain permanent-resident visas..These returnees are teaching locals how to build world-class companies and how to innovate."

The author is confused. If these returnees (due to US Visa policies) are so smart, companies are more than willing to take care of their visa problems. They are returning because they can't find a job here.

 

BARRY SOETORO

9:29 PM ET

January 1, 2011

this article is humorous, and no relation to actual conditions

"The next Google could well be cooked up in a garage in Guangzhou or Ahmedabad." Vivek Wadhwa, the lifetime academic who wrote this intellectual posturing is either paid to spew such nonsense, or believes what his colleagues propagate and has never actually spent a day in either Guangzhou or Ahmedabad.
-
I have. Much of PRC, actually. And let me inform the reader factually that I have yet to see any innovation, any creative design, any cooking of the next internet billion dollar public offering in any garage. They don’t have garages in China; viewed as a useless space. Indians have yet to catch up and afford a sudden inflammatory mobility device called an automobile offered by TATA yet; a nice way to send the wife to rama and trade up to a younger offering, perhaps.
--
BTW, Ahmedabad is in the Gujarat province of India, on the north western coast; a fast growing city; large Muslim population who in the early 1940s, wanted to “Quit India”. Look it up. The average high temp is in the 30s Celsius and very dry climate most of the year.
Much of the growth over the past decade has come from European conglomerates investing in the low cost of human servitude the locals provide. Nothing else. Apparently you can get a very well fitting pair of bluejeans at a very large discount.
Oh, ask the author how many bombs were set off in public places in Ahmedabad in the past year? “please ignore the human body parts that have suddenly appeared in your Roghan Josh, sir; it just so happens we have learned the victims are vegetarian, so their added flavour will be very healthy!”

 

INJUN_NC

10:40 PM ET

January 1, 2011

No shortage of idiots like Mr. BARRY SOETORO

Delusional dude -- Mr. Soetoro.

Pray, what has the following pearls got to do with the core point that America's economic hegemony is on the verge of being challenged by two historic economic powerhouses:

"They don’t have garages in China; viewed as a useless space. Indians have yet to catch up and afford a sudden inflammatory mobility device called an automobile offered by TATA yet; a nice way to send the wife to rama and trade up to a younger offering, perhaps"

and

"Ahmedabad is in the Gujarat province of India, on the north western coast; a fast growing city; large Muslim population who in the early 1940s, wanted to “Quit India”. Look it up. The average high temp is in the 30s Celsius and very dry climate most of the year."

and

“please ignore the human body parts that have suddenly appeared in your Roghan Josh, sir; it just so happens we have learned the victims are vegetarian, so their added flavour will be very healthy!”

With such powerful comprehension as displayed by Mr. Soetoro, the future of America is in good hands!

 

NANJINGED

2:37 AM ET

January 4, 2011

Actually...

Sina isn't a twitter clone, it's a web portal that has been around since 1999. I guess if you wanted to call it a clone, the closest thing would be a Yahoo! clone.

Sina offers a plethora of services (search, news, email, games, blog hosting, etc), one of these services is Weibo. Weibo is the twitter clone (though it has added some innovations that Twitter users might like, such as native photo support, threaded conversations, etc).

 

NETAJI

3:01 PM ET

January 4, 2011

Chinese and Indian Education

The article is thin on facts and high on opinions. The author says that Chinese research papers and patents are trash. How does he know?Doesn't the unsubstantiated bashing suggest something- the papers and patents may actually be of good standard.

Coming to India, the author says that many Indians are starting technological start-ups. How many patents they have won? Isn't patent something we associate with startups. The facts here are not very rosy.
The World Intellectual Property Organization suggests that India filed 761 patents in 2009, down from 1,080 in 2010. China in comparison filed 7,946 patents.

190 big companies pay 55 percent of the top corporate income tax in India although more than 4,00,000 companies file income tax returns. This suggests that the average Indian small firm is not doing great.

 

CHIARAFANNY

8:21 PM ET

January 26, 2011

Same old news

America is rightfully worried about its sinking competitiveness, and does indeed need to improve its education system. But it could win the battle and lose the war, because India's and China's successes aren't due to their education systems, but despite them. You've probably heard of Indian outsourcing hotspots like Bangalore and Chennai, but it's not just call centers and software sweatshops Americans now need to worry about: Technology entrepreneurship is booming all over in China and India, and is beginning to innovate; these startups will soon start competing with Silicon Valley.