A press release from the NSF reports Asia’s investment in the 1990’s are paying higher dividends today, nearly outperforming the U.S. and Europe. In particular, China reports a 20% annual growth rate from 1995 to 2003. This was helped with investment from U.S. multinational corporations of $11.9 billion in 1994 up to $21.2 billion in 2002.

So what’s going on over there? Thomas Friedman didn’t have to wait for the numbers to come in when he wrote his book, “The World is Flat.” Asia’s strategic investments in education, science and technology in the mid 1990’s have created an abundance of knowledge resources:

The ability of Asian nations to innovate and add value to scientific knowledge is supported by an outflow of scientific articles, new inventions, and perhaps most indicative, its production of newly degreed scientists and engineers. Asia produced 24,900 doctorates in science and engineering in 2001, almost as many as the 26,000-27,000 the United States produced from 2001-2003.Although only very broad estimates of bachelor’s degrees conferred in Asia are possible because of data gaps, there are big differences in number of degrees awarded between Asia and their western counterparts. Countries like China are increasingly focusing on the quality of these degrees. Engineering bachelor’s degree output in Asia nearly doubled that in the United States and the European Union combined in 1990. Meanwhile, U.S. engineering degrees declined 6 percent during the same time period.

In 2002, the United States and the European Union conferred 258,900 engineering degrees combined; Asia conferred 590,800 and is pulling farther ahead.

Here is what I worry about: education infrastructure in Asia continues to grow and there is no shortage of people to fill there classrooms. The above data is 5 years outdated. The U.S. can’t even comprehend trying to catch up. We can no longer expect the U.S. will remain competitive through creativity and innovation. What else can we do? Wield a big stick?