HSBC projects R&D spending to lead Korea’s trade growth

Korea’s export growth will accelerate over the next 15 years due to its strong research and development investment, according to research by HSBC.

The country’s R&D spending accounted for 3.7 percent of its gross domestic product in 2011, the highest among 25 global economies. Thanks largely to its effort to strengthen R&D, the country plays a “significant role” in the production of high-tech goods, HSBC said in its latest global trade report.

The bank predicted that would be high-tech more than 25 percent of goods traded by 2030 compared to 22 percent in 2013. And Korea’s exports are expected to rise at an average rate of 8 percent a year over the same period, the report said.

As the global economy becomes more knowledge-intensive, it is “essential” for countries to increase investment in research and education for future growth, said Martin Tricaud, president and CEO of HSBC Korea.

“Korea’s high levels of R&D spending mean it is well placed to stand up to the competitive pressures from the global economy,” he added.

(596story@heraldcorp.com)