Developing nations face a structural challenge in funding scientific research, relying heavily on government spending rather than private sector R&D.
- Gross Expenditure on R&D (GERD): Most developing nations spend less than 1% of their GDP on R&D (e.g., India ~0.65%, Brazil ~1.2%). Developed nations like South Korea and the US spend 3% to 4.8%.
- Funding Source Mismatch: In developed nations, the private sector contributes over 70% of R&D funding. In developing nations, the government remains the primary funder (~60% in India), leading to bureaucratic delays and lower commercialization rates.
- Brain Drain: The migration of highly trained scientific talent to developed economies due to better research infrastructure and higher salaries, causing a severe human capital loss.