12 January 2026
In his book Empire of Ideas: Creating Modern Universities from Germany to America to China, William C. Kirby, a Professor at Harvard Business School, dedicated a chapter to unraveling the rise of the first modern university of the world. According to Kirby, the modern university system did not emerge until 1810 when King Frederick William III of Prussia, after suffering a defeat from Napoleon, aimed to establish a university with the motive of replacing ‘with intellectual strength what we have lost in physical strength’. Thus began the Humboldt University of Berlin, which pioneered the creation of knowledge, with collaboration between professors and students as central to the pursuit of knowledge, rather than the traditional system where knowledge was to be passed down from professors to students. The university became the primary hub for intellectual giants like Einstein, Marx, Engels, von Bismarck, Weber, and Hegel, and has, at present, produced 57 Nobel Prize winners.
If in the 19th century, countries consolidated their national strengths through scientific and industrial revolutions under a multipolar world order characterised by realpolitik, imperial presidencies and protectionist regimes, the 21st century, under a multipolar world order and protectionist governments, is characterised by the pursuit of technological advancement and its applications. At the heart of it lies investments in research on technology in universities, key research institutes where knowledge generated is considered a matter of national security and importance. Countries like China and India outperform the United States, Russia and countries in the EU in the number of STEM graduates every year in order to make rapid advancements in research. The World Economic Forum (WEF), in their annual meeting in 2025, highlighted joint collaborations between universities and research institutes as key to building an innovation ecosystem in the Global South in order to catch up with developed economies.
In the context of Nepal, being located between India and China has long been described as strategically advantageous. Nepal is seen as a bridge connecting the two superpowers through economy and trade. Research on trilateral relations has long argued that economic engagement serves as the bedrock of Nepal-India-China trilateral relations. However, Nepal’s locational advantage has not translated into optimum economic engagements with both neighbours given the complicated geo-political realities and limited capacity for openness between India and China. Nepal’s ambition to be the bridge has thus only remained aspirational.
Both China and India are making rapid progress in technological innovation. According to the Global Innovation Index (GII), China now ranks 10th in the world in terms of its innovation capabilities. India, despite its limited budget spending on R&D—just 0.64 per cent of GDP compared to China’s 2.4 per cent—now ranks 38th in the GII index, demonstrating its desire to rise in innovation. In that regard, Nepal’s locational advantage can be more pronounced in its ability to foster a research environment that brings collaborative research opportunities and academic exchanges among the institutions of the two countries. In an era defined by the race for technological dominance, a nation’s comparative advantage lies not just in its physical location and access to resources, as argued by Halford Mackinder, but also in its ability to catch up to scientific and technological advancements that transform the way countries project their influence in global affairs.
Students from the Neighbourhood* Going to China and India
At present, China is much ahead of India when it comes to investments in scientific research. In 2023, Chinese universities spent USD 780 billion on R&D, which was very close to the United States’ total spending of USD 823 billion in the same year. There are 15 Chinese universities in the top 100 global rankings in 2025—unimaginable two decades ago. Compared to China, Indian universities have yet to join the top 100 club; however, specialised institutions like IIT Delhi rank 26th in the world for engineering, while IIM Ahmedabad sits at 56 for management and business studies as per QS rankings. While the rankings are not the only indicators of progress and quality among universities, they do exhibit a level of research achievements and technical capabilities that Nepal can take advantage of from its immediate neighbours. For instance, as China’s economic engagement in Nepal continues to grow, it will need human capital to better manage tasks that require understanding of Chinese systems. Technologies made in China require graduates who have studied there to better understand and operate them. The establishment of research centres such as the Chinese Academy of Sciences (CAS) at the Tribhuvan University can promote joint research projects that can cultivate talent in order to better undertake the research and projects requiring Chinese expertise.
It also requires Nepal to invest in globalising Nepali universities for increased research collaboration between institutions of both countries. Establishing collaborative research, student exchange, and access to R&D facilities provide opportunities to undertake collaboration among Chinese and Indian universities and access their skill sets while being based in Nepal. In that sense, Nepal’s locational advantage between two superpowers can be best utilised through scientific and R&D collaboration. For instance, Kathmandu University recently entered into a partnership with IIM Shillong of India to foster research collaboration and student exchanges, while at the same time, it also has a field study centre of Tsinghua University where faculty and students from Tsinghua can undertake research activities in Nepal. The advantage of such partnerships is not only in academic collaborations but also in promoting universities as centres of innovation. Research in management studies has shown that universities’ global presence through collaborations, research, and academic exchanges can act as a bridge for small enterprises to enter new markets. Globalising Nepali universities can enable Nepal to secure the larger market access advantages among both superpowers that it has long hoped for.
Commitments from government and university leadership are quintessential to make such a realisation possible. The Nepal government spends approximately 0.03 percent of its GDP on R&D with only 0.011 percent of education allocated to innovation. This along with organizational constraints on lack of support to researchers and domestic political uncertainities have constantly created barriers for academic and innovation excellence. In the case of Humboldt, the extraordinary man of letters, Wilhelm Von Humboldt, initially refused to serve as Head of Department of Education unless the state guaranteed limited intervention and allowed freedom to combine unique abilities and skills, which later became the Humboldtian model of higher education. Being able to produce research with academic freedom and without undue constraints can help Nepal’s ability to cultivate a competitive research ecosystem that can attract international collaborations.
Nepal’s strategic location serves as an advantage to continue the pursuit of research and excellence alongside China and India. Notwithstanding the importance of Nepal’s trade and economic relations with both countries, the geopolitical reality is that India and China continue to have a cautious relationship that has affected how Nepal approaches its neighbours. In a multipolar world order, international trade is political and Nepal’s trade prospects face a host of external challenges given the state of India and China’s interactions with each other. A strong commitment to academic research underlined by the spirit of transnational collaboration can transcend geopolitics, enhance the global standing of universities, and the fostering of talent. Similar to William III’s commitment and Humboldt’s vision, the Nepali state should envision universities as an arsenal of intellectual capabilities and a source of sustained advantages from its two neighbours.
