Page 41 - IMDR Journal 2025

Research Article
Figure 7 R&D Investment as a Percentage of GDP relevance in shaping future economies. The United States
(Selected Economies, 2023) and China lead the deep tech race, with over $400 billion in
combined investments in AI and quantum computing. The
(Source: Boston Consulting Group (2022). "Global R&D
importance of deep tech shows clearly in what different
Expenditure and Innovation Leadership." www.bcg.com )
countries are doing. In the U.S., the CHIPS and Science Act
This underscores the importance of sustained research is pushing for more domestic chip production and research.
funding, talent development, and policy coordination in China, on the other hand, is pouring government money into
securing a competitive edge in deep tech. tech projects to grow faster. The European Union is taking a
As the global technological landscape continues to evolve, different path. Instead of just investing money, it’s focusing
deep tech is expected to play a pivotal role in shaping the on rules—like the GDPR, which protects personal data and
future of industries ranging from healthcare and energy to encourages ethical AI use.
defense and space exploration. Recent data from the OECD These different methods matter. They affect how well
(2023) indicates that AI-driven automation and quantum countries can compete in the tech world, how strong their
computing breakthroughs could boost global GDP by 7% supply chains are, and who they choose to partner with. The
over the next decade, reinforcing the economic significance tech race is now a big part of global politics. You can see it in
of deep tech investments. Fig. 8 highlights the projected the growing trade restrictions and how countries are pulling
contribution of deep tech industries to GDP growth across away from depending on each other.
major economies, emphasizing the transformative potential A good example: The tech fight between the U.S. and China.
of these technologies. At the same time, policy decisions Since 2019, their chip trade has dropped by 35%. That’s
will remain a crucial determinant of technological huge. It’s made both countries try harder to make their own
leadership, as governments navigate the challenges of chips. Now, Japan, South Korea, and the EU are also
intellectual property rights, ethical AI governance, and working on building more chip factories. They want to stop
cross-border collaborations. The coming years will witness relying too much on others.
intensified efforts by nations to solidify their deep tech
capabilities, with an increasing focus on fostering resilient Chips are not just about the economy anymore. They’re tied
innovation ecosystems that balance economic growth, to national security used in defense, intelligence, and more.
security considerations, and ethical responsibilities. Another big issue is talent. The U.S. and China together have
over 60% of the world’s best AI experts. This gap makes it
METHODOLOGY hard for smaller or developing countries to keep up. So, they
This research adopts a qualitative approach based on need to invest more in education, research, and training
secondary data analysis to explore deep tech’s role in global people. Funding for deep tech is growing.
technological leadership and its geopolitical implications. In 2023, venture capitalists put in around $62 billion, which
The study relies on data from academic journals, is 30% more than the year before. More companies are also
government reports, industry whitepapers, and institutional teaming up with deep tech startups up by 40% in the last
research from organizations such as the World Economic three years. Countries that offer tax breaks and grants are
Forum, McKinsey Global Institute, and the Boston seeing faster progress in bringing tech ideas to market.
Consulting Group. Statistical data on investment trends, Nations like Germany and South Korea, who spend more
regulatory frameworks, and deep tech advancements have than 3% of their GDP on R&D, are staying ahead.
been extracted from market reports and policy documents to Governments need to keep supporting research, partner with
provide a comprehensive understanding of national
strategies. Comparative analysis has been employed to private companies, and protect their ideas through strong IP
assess the varying approaches of major economies, rules.
including the U.S., China, the European Union, and India, in That’s how they can stay leaders in deep tech. But there are
fostering deep tech ecosystems. Additionally, trends in still problems especially with AI laws. The EU has strict
R&D investments, talent acquisition, and trade policies rules for privacy and ethics (like GDPR). The U.S. and
have been examined to highlight key challenges and China are more relaxed, so they can move faster. These
opportunities. The study aims to present an integrated differences are creating confusion. It's hard to make global
perspective by synthesizing insights from multiple credible standards when everyone plays by different rules.
sources, ensuring a data-driven evaluation of deep tech’s Cybersecurity is also a growing concern.
impact on geopolitical and economic dynamics. As more countries use AI, quantum tech, and smart systems
FINDINGS AND DISCUSSIONS in their defense and infrastructure, the chances of hacking
and cyber attacks go up. If these systems get breached, it can
The findings of this research highlight the growing
significance of deep tech as a critical driver of global cause serious problems. Still, countries aren’t really
technological leadership and geopolitical influence. The working together on cybersecurity. They’re focused on
protecting themselves. Because there’s no common set of
analysis reveals that countries investing heavily in artificial rules, these gaps can be exploited by bad actors.
intelligence, quantum computing, semiconductors, and
biotechnology are gaining competitive advantages in both What’s needed is a global agreement something that sets the
economic and national security domains. The global deep ground rules for AI safety, data protection, and cyber
tech market is projected to reach $3.2 trillion by 2030, resilience. Without it, the same deep tech that helps us grow
growing at a CAGR of 17%, reflecting its increasing could also become a tool for digital warfare.

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