In this article, we will look into the 15 most advanced countries in Asia. If you want to skip our detailed analysis, you can go directly to the 5 Most Advanced Countries in Asia.
Asia’s Technological Development
Asia is rapidly making strides in the world, with its progress in tech and innovation. According to a report by McKinsey Global Institute, Asia has dominated the global tech market over the past decade. It accounted for over half of the global tech companies’ revenue growth. The region has made significant contributions to key indicators of growth including global startup funding, R&D expenditures, and patent submissions, accounting for 43%, 51%, and 87% respectively across each indicator.
Asia has incited a revolution in the digital technology sector, fueling economic growth in the region. The region is continuously integrating technology across various sectors, creating opportunities and improving lives. Moreover, the advances in tech and innovation have enhanced the productive capacities of Asian countries, boosting growth and improving public services across Asia. With its expertise in the digital sector, Asia stands at the forefront of the digital information technology market, encompassing big data, legacy modernization, and IoT. Asia is home to some of the most advanced countries in science and technology in the world. The region is a hub for talent in science and technology. For instance, between 2016 and 2018, India alone produced 75% of the world’s STEM graduates. Asian economies have also made significant contributions to combat climate change. With innovative tech solutions, Asia emerged as a leader in global renewable technology with an installation capacity of 45%, surpassing Europe and the US, in 2020. The region is poised to garner a share of 56% by 2040, driven by R&D and infrastructure investment paving for tech solutions.
Major Players in the Asian Market
Some of the major names in the Asian market driving innovation in the region include Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM), Tencent Holdings Limited (OTC:TCEHY), Honda Motor Co., Ltd. (NYSE:HMC), and Alibaba Group Holding Limited (NYSE:BABA).
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is the top semiconductor manufacturing company in Asia. On November 21, Bloomberg reported that Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is considering building a third chip factory in the southern Japanese prefecture of Kumamoto. The factory will be responsible for producing 3-nanometer chips. The company had previously planned to establish two factories in Japan. The addition of this factory can potentially make Japan a major global chipmaking hub. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is currently constructing a facility in the Kumamoto prefecture. The project has investments from Sony Group Corporation (NYSE:SONY) and DENSO Corporation (OTC:DNZOY). The plant is expected to start its operations in the fourth quarter of 2024. The factory would be responsible for making 12nm chips. The company will be building a second facility, near its first plant, which is expected to develop 5nm chips in 2025.
Tencent Holdings Limited (OTC:TCEHY) is a leading multinational technology and entertainment conglomerate in China. On November 16, the company announced its partnership with Visa Inc. (NYSE:V). The partnership will allow the direct transfer of international remittances to Weixin users’ digital wallets. Over one billion Weixin users in China will be able to access Visa Direct’s network. This collaboration is a significant step toward making cross-border payments convenient. Tencent Holdings Limited (OTC:TCEHY) has already collaborated with more than 30 leading global remittance institutions. These partnerships have allowed the company to link remittance users in over 60 countries with Weixin users.
Honda Motor Co., Ltd. (NYSE:HMC) is a leading global automobile company. On December 6, the company announced that it would launch its new series of electric vehicles at the CES 2024 in Las Vegas, on January 9, 2024. Honda Motor Co., Ltd. (NYSE:HMC) will showcase its new electric vehicle model and also share insights about the key technologies demonstrating the ongoing transformation in the company. With its commitment to becoming carbon-neutral by 2050, the company aims for 100% EV and FCEV sales by 2040. Honda Motor Co., Ltd. (NYSE:HMC) will share the company’s vision for its future EV goals at its CES conference, featuring Global CEO Toshihiro Mibe and Global EVP Shinji Aoyama.
On November 16, Honda Motor Co., Ltd. (NYSE:HMC) launched an omnidirectional safety and driver-assistance system, Honda SENSING 360+. The system is developed for the elimination of blind spots and prevention of potential collisions. The Honda SENSING 360+ will also help reduce the driver’s burden. The new system will feature a driver-monitoring camera and high-definition maps. These new features will enhance driver monitoring and vehicle management capabilities, resulting in a safer and more relaxed experience. The new system will debut in 2024 in China before its global expansion.
Alibaba Group Holding Limited (NYSE:BABA) is a top e-commerce and retail company in Asia. On December 11, the company announced that its DAMO Academy had released two language models called SeaLLM and SeaLLM-chat. These models are designed specifically for South Asia. The two language models can process local languages and facilitate users in tasks that align with local customs and legal stipulations. This initiative by Alibaba Group Holding Limited (NYSE:BABA) aims to develop inclusive and regionally relevant language models for South Asia.
Now, let’s have a look at the 15 most advanced countries in Asia.
15 Most Advanced Countries in Asia
Methodology
To compile our list of the 15 most advanced countries in Asia, we utilized the Global Innovation Index (GII) and R&D Expenditure as a Percentage of GDP. The GII ranks countries based on their potential and capacity for innovation. It assesses countries’ innovative landscapes, their adoption of technology, and the socio-economic aspect of the development. We sourced data for our metrics from WIPO and the World Bank respectively. To rank the most advanced countries, we employed GII and sorted our list of Asian countries. Initially, we collated a list of 30 countries based on the GII and then ranked them based on their R&D expenditure as a percentage of GDP in ascending order.
15 Most Advanced Countries in Asia
15. Vietnam
Global Innovation Index (2023): 46
R&D Expenditure as a Percentage of GDP (2019): 0.42%
Vietnam is ranked among the most advanced countries in Asia. In 2019, Vietnam spent a total of 0.42% of its GDP on research and development. It is placed among the top 50 countries on the Global Innovation Index.
14. Saudi Arabia
Global Innovation Index (2023): 48
R&D Expenditure as a Percentage of GDP (2021): 0.46%
Saudi Arabia is placed 48th on the Global Innovation Index, as of 2023. In 2021, Saudi Arabia reported an R&D spending of 0.46% of the country’s GDP. It is ranked 14th on our list.
13. India
Global Innovation Index (2023): 40
R&D Expenditure as a Percentage of GDP (2018): 0.66%
India is leading the tech sector with its large pool of talent and relatively high R&D spending as compared to other Asian countries. According to the World Bank, it spent 0.66% of its GDP on research and development in 2018. India is ranked 40th on the Global Innovation Index.
12. Qatar
Global Innovation Index (2023): 50
R&D Expenditure as a Percentage of GDP (2021): 0.68%
Qatar is a West Asian country, ranked 12th on our list. In 2021, Qatar spent 0.68% of its GDP on research and development, as reported by the World Bank. It is placed 50th on the Global Innovation Index.
11. Jordan
Global Innovation Index (2023): 71
R&D Expenditure as a Percentage of GDP (2016): 0.70%
Jordan is a Middle Eastern country, located in the Southwest of Asia. As of 2023, it is ranked 71st on the Global Innovation Index. Jordan reported an R&D expenditure of 0.70% in 2016. It is placed 11th on our list.
10. Malaysia
Global Innovation Index (2023): 36
R&D Expenditure as a Percentage of GDP (2020): 0.95%
Ranked 10th on our list, Malaysia spent a total of 0.95% of its GDP on research and development. According to the WIPO, it is placed 36th on the Global Innovation Index. Malaysia is making strides with digital evolution across various key elements including robotics, AI, and IoT among others.
9. Turkey
Global Innovation Index (2023): 39
R&D Expenditure as a Percentage of GDP (2020): 1.09%
With its largest part located in Asia, Turkey is ranked among the most advanced countries in Asia. In 2020, it reported an R&D expenditure of 1.09%, as reported by the World Bank. Turkey is placed 39th on the Global Innovation Index.
8. Thailand
Global Innovation Index (2023): 43
R&D Expenditure as a Percentage of GDP (2020): 1.33%
Thailand has made significant progress in the science and technology sector and is ranked 8th on our list. As of 2023, it is placed 43rd on the Global Innovation Index. In 2020, Thailand reported an R&D expenditure of 1.33% of its GDP.
7. United Arab Emirates
Global Innovation Index (2023): 32
R&D Expenditure as a Percentage of GDP (2021): 1.50%
The United Arab Emirates is one of the most advanced Asian countries. It has outperformed other countries in the Middle East because of its technological advancements. As of 2023, the United Arab Emirates is placed 32nd on the Global Innovation Index. In 2021, the country reported an R&D expenditure of 1.50% of its GDP.
6. Singapore
Global Innovation Index (2023): 5
R&D Expenditure as a Percentage of GDP (2019): 1.85%
Singapore is ranked among the most advanced countries in Asia. Singapore is one of the most developed countries in Asia and is a hub of international trade and commerce. According to the World Bank, Singapore spent 1.85% of its GDP on research and development in 2019. It is one of the leading countries in the world when it comes to science and innovation. It is placed 5th on the Global Innovation Index as of 2023.
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Disclosure: None. 15 Most Advanced Countries in Asia is originally published on Insider Monkey.
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