R&D and Innovation in India –

Status, Emerging Trends and

Challenges Submitted By:
S Ravitej Raju (046)
Sunit Kumar (055)
Swati Sneha (056)
T Gowtham Kumar (057)
Uday Sagar Soren (058)
Md. Ansari (FPM/10/05E)
Synopsis

�Though India’s economy is growing, the rate at which our R&D and innovation
growing has to be improved further. Till now most of the innovations in India
have been incremental and there is little to no breakthrough innovations in
India. There are several factors that play a role in inhibiting this culture in India
and making India a global R&D and innovation powerhouse. In our presentation
today, we will start of with the conceptual difference between R&D and
innovation and the current status of R&D/innovation in India. Later we will look
into the key challenges that India faces and the key initiatives taken by the
government to improve R&D/Innovation in India. We would also share the key
insights that we got from the Director of Indian Institute of Spices Research,
Kozhikode on research in India. To round things off, we would suggest a few
initiatives that need to be taken in order to improve the R&D/innovation in India
 T Gowtham Kumar (057)
Innovation vs. R&D
Investment in new technology and increasing
�Create Value from Ideas capacity of firm

R&D
R&D

Investment
and Engineering
Finance
Develop
Applied
Innovation New
Research
Products

Distribution
and Sales
Manufacturing Industrial
Engineers
Scientists
 T Gowtham Kumar (057)
Current Status (1/2)

• 6th largest R&D investor

• 3.67% of global spending- $71.48 million
• Overseas direct investments grew at CAGR 38.8%
6 • Most preferred in Asia- Capgemini

• Projected % of GDP Spending in 2034

• Current levels – 0.9% in 2014
2.4% • Ratio of Public to private investment is 2:1

• World Intellectual Property Organization ranking 2015

• 2014 ranking – 81
• Indian pharma drives growth
61 • Foreign Automobile sector sees India's potential
 T Gowtham Kumar (057)
Current Status (2/2)
The Bad
The Good
• India accounted for 1. China spends 5 times 6. Percapita publications
40% of total $31 Billion than India by research scholars is
of globalized 2. IPR and Patent rights very less
engineering and R&D are mot clearly defined 7. National spending on
in 2015. 3. The research institutes R&D still < 1%
• National Innovation originally conceived 8. Highly bureaucratic
Council and Ministry of have become process for filing
MSME set up India producers of engineers patents
Inclusive innovation 4. Increased 9. Interest towards taking
Fund (IIIF) and $82 concentration of up research as a
million is invested in research in 1 sector career option is dismal
healthcare, water, (IT) 10. Private sector
energy and agriculture 5. Facilities in the investments remains
research institutes are < 40% of total
archaic and not investments
updated
 S Ravitej Raju (046) & Uday Sagar (058)

Key Challenges Facing India on R&D/Innovation

(1/2)
Preference for salary Indian markets bias towards
The Science and Technology substitution businesses(lower “more for less” deters
Ministry is ranked low by the investment, faster cash flow, no innovation that demands long
government and has suffered innovation risk, less term investments and depends
under reluctant Ministers government dependence) to on market’s ability to pay a
innovative entrepreneurship premium

Cumbersome government
The battle for basics and Financial Institutes give higher
policies and bureaucratic
collective culture in India importance to profits and
challenges in ensured people
demands us to be safe players collateral security than to strong
venturing into manufacturing
instead of encouraging ideation and ability to
required a pocketful of bribes
creativity and risk-taking which innovate(situation has changed
instead of ideas and an
is necessary for innovation for IT enabled startups)
enterprising spirit
 S Ravitej Raju (046) & Uday Sagar (058)

Key Challenges Facing India on R&D/Innovation

(2/2)
Absence of Science-led
Poor science performance of Indian industry is more
innovation and absence of
India whether in innovation or interested in importing
broad based elite universities
publications is because of the discarded 1970s technology
(despite having IITs) that can
subcritical funding the discipline from the West than in
expand the countries innovation
receives promoting R&D and Innovation
capabilities

Lack of clarity in matters such

Lack of bolder risk-taking,
The low interest shown by as Intellectual Property
innovation and entrepreneurial
people to pursue research in regulations does not enable
spirit amongst manufacturing
India due to availability of sub- scientists and corporates to
startups unlike the encouraging
standard facilities within the make revenues and hinders
signs seen in IT-enabled
country their motivation for R&D and
startups of late
innovation
 Sunit Kumar (055) & Swati Sneha (056)

Initiatives taken by government/industry (1/2)

• Establishment of 31 centers of innovation and entrepreneurship and 7 IISERs

Reforms in • Launch of Global Initiative of Academic Networks for tapping the talent pool of scientists
Education •
•
Introduction of National Innovative Scholarship
Organization of IGNITE, an annual competition for student’s ideas and innovations
Sector • Establishment of innovation fund for secondary education to boost local innovation

• Flagship initiative of Government intended to building a strong ecosystem across India

Startup • Reduce regulatory burden on startups to allow them to focus on their core business
• Provide funding support for development and growth of innovation driven enterprises
India • To galvanize startup ecosystem and to provide them national and international visibility

• Declared 2010-2020 as “Decade of innovation”

STI Policy •
•
Proposed to increase India’s R&D investment to 2% of GDP from current under 1%
Aims to promote spread of scientific interest and understanding across all sections
2013 • Seeks to establish new regulatory framework for creation and sharing of intellectual
property
 Sunit Kumar (055) & Swati Sneha (056)

Initiatives taken by government/industry (2/2)

• Establishment of Infosys innovation fund to invest in innovative entrepreneurial ventures

Industry • Spark the Rise initiative by Mahindra Group to foster innovation in India
• Organization of India Innovation initiative jointly by AICTE, DST and CII to facilitate innovators
Initiatives for commercialization of their innovations
• Launch of Reliance – The Ultimate Pitch – an innovative business idea contest

Atal • An innovation promotion platform involving academics, entrepreneurs and researchers

• Aims to foster a culture of innovation and R&D in India
Innovation • Establishment of Atal Tinkering Laboratories (ATL) across schools in India
Mission • Aims to promote a network of world class innovation hubs and grand challenge for India

• Formation of innovation clusters

• Establishment of India Inclusive Innovation fund with an initial corpus of ₹ 500 crore
Other • Formation of National Knowledge Network and National Optical Fiber Network
initiatives • Introduction of Indian Innovation Portal
• Launch of Global Innovation Roundtable
 S Ravitej Raju (046) ,T Gowtham Kumar (057), Uday Sagar Soren (058)

Field Visit- Indian Institute of Spices Research

Status of R&D Why do we lag?

The budgetary allocations Inclined towards

for R&D are decreasing over publications than patents. If
the years. you patent, normal farmers
cannot use and will lead to
increase in prices

Government provides the

best of facilities, but building
Little collaboration between
infrastructure does not
research institutes for
translate to knowledge
knowledge sharing due to
building if there is no vision.
politics
M.S.Swaminathan says, “
We are building buildings” Dr. Nirmal Babu, Director, Indian Institute of
Spices Research
 Sunit Kumar (055) Swati Sneha (056) Md. Ansari (FPM/10/05E)

Future need and suggestions to overcome the situation

Order in the system. Let scientists do the research, not budgeting and
Think other organizational activities..
sustainable,
have A Technology and Science based development model than the current
patience, we business and profit based one.

will deliver
the best. Permission for the private industries to use R&D facilities at a nominal price
to the beneficiary and the government
-Dr. Nirmal Babu

International collaboration channeled towards R&D. Make people

interested to become a scientists in science and technology
What steps India needs to undertake to make
India a global leader in R&D and
Innovation??
 References (1/2)

Source Slide No.

https://www.bloomberg.com/news/articles/2013-02-05/innovation-is-not-just-about-r-and-d 1
http://www.economicshelp.org/blog/525/economics/definition-research-development-and-innovation/ 1
http://www.ibef.org/download/Innovation-and-Patents-January-2017.pdf 2
https://www.globalinnovationindex.org/gii-2016-report# 2
http://www.ibef.org/industry/research-development-india.aspx 2/3
https://yourstory.com/2016/05/indian-business-innovation-absent/ 4
http://www.thehindu.com/todays-paper/tp-opinion/an-unscientific-approach-to-st/article4113474.ece 4
The Economic Time 25th Aug 2016, India, Innovative ? India’s 15-place jump in the new Global Innovation Index has to be taken 5
with a pinch of salt, writes Hari Pulakkat

First set up the labs, then dream the Nobel by Sriram Balasubramanian 5
Funding for science grossly inadequate, says C.N.R. Rao 5
http://innovationcouncilarchive.nic.in/index.php?option=com_content&view=frontpage&Itemid=1 6/7
https://timreview.ca/article/818 6/7
http://www.startupindia.gov.in/ 6/7
 References (2/2)

Source Slide No.

http://niti.gov.in/content/atal-innovation-mission-aim 6/7
http://dst.gov.in/st-system-india/science-and-technology-policy-2013 6/7
India must tackle four challenges to get ahead in science, Economic times 10
National Innovation Foundation- ANNUAL-REPORT-2015-2016 10
http://www.cuocient.com/index.php/cl/article/view/co5/10 10
Private sector must support scientific research too, 12-01-2012, The Hindu 10
Thank You !!