The National Science Foundation reported that the once dominant position the United States held in research and development in the sciences and technology has been drastically eroded by Asian competition, particularly China, between 2000 and 2010. The results were published by the National Science Board (NSB), the policy making body of the National Science Foundation (NSF), on Feb. 6, 2014, in a biennial report that is designed to give guidance to federal policy makers.
Research funding for science and technology decreased by seven percent in the United States and increased by 11 percent in China during the first ten years of this century.
It is important to note that the report does not include the seven percent decrease in funding for research and development that resulted from federal budget sequestration in the United States.
China has tripled the number of people involved in research and development and focused on programs that promise the largest return on investment like clean energy. China invested almost twice the capital in research and development that the United States did during the time frame addressed in the report.
Corporations in the United States are noted to be funding more research and development in other countries due to high costs of labor in the United States and lower rates of regulation in other countries.
The United States has in part funded the expansion of its research and development competitors in China by continually borrowing from China.