Technology Development in Asia Long Load Ahead

Over the last decade, the region has accounted for 52% of global growth in tech-company revenues, 43% of startup funding, 51% of spending on research and development, and 87% of patents filed, according to new research by the McKinsey Global Institute (MGI). Developers have played a significant role in driving this growth in the tech sector. China, home to 26% of the world’s unicorns (startups valued at $1 billion or more), leads the way in tech entrepreneurship in Asia, with the contribution of skilled developers. However, it is worth noting that China still relies on foreign inputs in core technologies. By the late 1960s, Asia was the poorest continent in the world when it came to income levels, marginal except for its large population.

Asia's Corporate Presence: Growth, Investment, and Digitization in Technology

Corporate Presence

Between 2006–08 and 2016–18, Asia accounted for 52 percent of global growth in the revenue of technology companies. Based on market capitalization, four of the world’s top ten technology firms were Asian in 2020; ten years earlier, the region had no companies in the top ten.

Investment

Asia’s share of start-up investment, which includes venture capital investment and initial public offerings, increased from only 16 percent in 2006–08 to 40 percent in 2017–19. China still accounts for a large share, but over the past decade, venture capital has increasingly flowed to Southeast Asia.

Digitized Consumer Markets

Asia’s consumer markets are expanding and digitizing rapidly and are benefiting from some of the most enthusiastic and tech-savvy customer bases in the world. The region accounted for 41 percent of global consumer demand in 2018, and is expected to account for 56 percent of growth in that demand in the period to 2030.

Japan's Technological Developments

Maybe you're more into cooking. Thanks to the electric rice cooker, a Japanese invention, you now have a helping hand in the kitchen while you make other stuff. Speaking of a helping hand, Japan is considered to be one of the world's leaders, if not the leader, in developing robots. In the not so distant future they may be cooking the rice in the kitchen for you, while you do other stuff, and carry on a conversation with one another.

Looking Ahead in Asia

Heading into 2023, Asia’s tech scene is well-positioned for strong growth potential. From adapting to new realities in emerging industries such as the metaverse and fintech; to compliance and commitment to environmental, social, and governance (ESG); to a heightened emphasis on national security in deal consideration, including sensitive personal data, global and domestic entities.