RIETI Report November 8, 2024

Shifting Global Technology Landscape: Current position of Japan as indicated by the "Critical Technology Tracker"

Dear Readers,
Welcome to RIETI Report.
This bi-weekly newsletter will keep you updated with the recent columns, event information and research results by RIETI fellows and other leading economists in Japan and around the world.

In this edition, we are featuring topics related to the shifting global technology landscape. As global technology competition intensifies, understanding each country’s capabilities has become vital for security and economic development. In her latest column, RIETI Consulting Fellow Rie Matsumoto explores dramatic changes in the global technology landscape and Japan’s current status.

We hope you will enjoy it. If you have any feedback, we would love to hear from you (news-info@rieti.go.jp).
Editors of RIETI Report (Facebook: @en.RIETI / X: @RIETIenglish / URL: https://www.rieti.go.jp/en/)

This month's featured article

Shifting Global Technology Landscape: Current position of Japan as indicated by the "Critical Technology Tracker"

MATSUMOTO RieConsulting Fellow, RIETI

While technology competition has been intensifying globally, it is becoming increasingly important to ascertain technological capabilities of individual countries from the viewpoint of security and economic development. The "Critical Technology Tracker" (hereinafter, the "Tracker"), which the Australian Strategic Policy Institute (ASPI) published at the end of August 2024, analyses scientific and technological capabilities of individual countries in 64 critical technologies, such as defence, energy, space, and AI. Following the first edition (March 2023), which was referenced by various national governments and news media, the latest second edition analyses each country's technological capabilities and technology monopoly risk based on a dataset of research papers covering a 21-year span (from 2003 to 2023) and other data.

Changes in Global Technology Landscape and Current Situation

What is notable is the reversal of the positions of the United States and China due to the technological rise of China. In the early 2000s, the United States was the world leader in many technological fields, but that hierarchy has been completely reversed in the last 20 years. During the period from 2003 to 2007, the United States occupied a leading position in 60 technologies out of 64, but during the period from 2019 to 2023, China took the lead in 57 technologies, while the United States held only seven technologies. Such reversal phenomena are most notable in the advanced materials and manufacturing and communication fields in particular, and in the field of biotechnology in recent years. In critical emerging technology fields, such as AI and quantum technologies, China has rapidly strengthened its leadership and is surpassing the United States in many other fields.

To read the full text:
https://www.rieti.go.jp/en/columns/a01_0766.html

Related papers

“Quantifying the Differences in Innovation Processes in China, Japan and the United States by Document Level Concordance between Patents and Web Contents”
MOTOHASHI Kazuyuki (Faculty Fellow, RIETI) / ZHU Chen (University of Tokyo)
https://www.rieti.go.jp/en/publications/summary/24100009.html

“Multilateral Governance for the Digital Economy and Artificial Intelligence”
Shiro ARMSTRONG (Non-Resident Fellow, RIETI) / Jacob TAYLOR (The Brookings Institution)
https://www.rieti.go.jp/en/publications/summary/24040011.html

“SBIR, Startups, and Subsequent Technological Development: Laser diodes in the United States and Japan”
SHIMIZU Hiroshi (Waseda University) / WAKUTSU Naohiko (Nagoya City University)
https://www.rieti.go.jp/en/publications/summary/24010018.html

Related articles

“Asia-Pacific Regional Integration in the Age of Economic Security”
KATADA Saori N. (University of Southern California)
https://www.rieti.go.jp/en/special/p_a_w/212.html

“China's Vision for Promoting "New Quality Productive Forces"-Integrating cutting-edge technology with industry”
Chi Hung KWAN (Consulting Fellow, RIETI / Senior Fellow, Nomura Institute of Capital Markets Research)
https://www.rieti.go.jp/en/china/24070201.html

“Learning and Technological Progress in the East Asian Electronics Industry”
Willem THORBECKE (Senior Fellow, RIETI)
https://www.rieti.go.jp/en/columns/a01_0720.html

Related event

RIETI BBL Seminar “New Directions in American Economic Statecraft”
Speaker: Mireya SOLIS (Director, Center for Asia Policy Studies, Senior Fellow, Foreign Policy, Philip Knight Chair in Japan Studies, The Brookings Institution)
Moderator: URATA Shujiro (Chairman Emeritus and Distinguished Senior Fellow (specially appointed), RIETI / Professor Emeritus, Waseda University / Senior Research Advisor, Economic Research Institute for ASEAN and East Asia (ERIA))
https://www.rieti.go.jp/en/events/bbl/24070401.html

Our latest discussion papers

“Quantifying the Differences in Innovation Processes in China, Japan and the United States by Document Level Concordance between Patents and Web Contents”
https://www.rieti.go.jp/en/publications/summary/24100009.html

“Use of Artificial Intelligence and Productivity: Evidence from firm and worker surveys”
MORIKAWA Masayuki (Distinguished Senior Fellow (specially appointed), RIETI)
https://www.rieti.go.jp/en/publications/summary/24100008.html

[List of discussion papers]
https://www.rieti.go.jp/en/publications/act_dp.html
[List of upcoming and past symposiums]
https://www.rieti.go.jp/en/events/symposium.html
[List of upcoming and past BBL seminars]
https://www.rieti.go.jp/en/events/bbl/

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