Published on

Published in: Technology, Business
  • Be the first to comment

  • Be the first to like this

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide


  1. 1. TRENDING STATE:AN OVERVIEW  India is fast emerging as a major destination for high-end research & development (R&D) projects for multinationals across the globe.  The country is home to a lot of top corporate R&D investors across sectors such as automotive, industrial machinery, information technology (IT), pharmaceuticals and biotech.  India currently has nearly 750 captive centres of foreign MNC, out of which some 350 are for engineering R&D.  The value of India's engineering R&D sector is estimated to be around US$ 10 billion currently and is forecast to rise to US$ 45 billion by 2020, as per an estimate by the National Association of Software and Services Companies (Nasscom).
  2. 2. Current State  As per the Global Innovation Index, India ranks 62nd.  There is a growing trend of MNCs setting up their R&D centres in India.  14 Indian companies have made it to the top R&D global entities.  The National Expenditure on R&D has increased from Rs. 18088.16 Crores in 2002-03 to Rs. 28776.65 Crores in 2005-06. The Projected R&D Expenditure has been raising heavily since then.  A dominant proportion of GERD, around 70 to 75%, is met by the government sources. 0 1 2 3 4 5 6 Amount spent on R&D from Their GDP in %
  3. 3. NEED FOR PROMOTING RESEARCH AND INNOVATION  India is in danger of falling behind other nations in the race to build an advanced 21th century economy.  Scientific gains and a booming economy go hand in hand.  Technologies from other countries reach India very late, hence we need to create our own.  Importing technologies at this time of economic crisis will lead to further weakening of rupee value.
  4. 4. STEPS TO PROMOTE RESEARCH & DEVELOPMENT Working Toward Practical Application of University Research Output A program to support industry-academia collaborative R&D across a wide range of phases to develop commercial applications of research output generated by basic research in universities. Several types of funding must be provided under this program, depending on the characteristics of each R&D phase. Collaborative Research Programs based on Industrial Demand We need to work on basic research to help solve technical issues shared in the industrial sector. This program facilitates industrys use of basic research results, as well as giving feedback on industrial viewpoints and perspectives to basic academic research. Setting up of research centres in each state Every state should have a team of researchers to predict crisis and mitigate the problems in that state and promote regional R&D projects in which resources of universities, industries, and local government are integrated. Development of Measurement and Analysis systems Creative and original R&D is a key to generating innovation. To support these activities we need to promote the development of systems and technologies for advanced measurement and analysis
  5. 5. IMPLEMENTATION  A country’s research and innovation highly depends on the economic state of the country. The % of GDP that India spends on Research and Development must be raised to a higher level in order for it emerge as one of the big players in the scene.  The central government must set up Universities for Research and Innovation. These universities should be deemed to be institutions of national importance. The central government may declare any existing public funded university to be a university for research and innovation after an expert committee (formed by the central government) has assessed it.  Research centres must be established in all states. These research centres should predict the crisis and mitigate the problems of that state. The work done by these research centres must be closely monitored. Apart from the financial aid provided by the government ,it should also be ensured that credible number of scientists are employed in each centre.  It must also be ensured that the professors who teach in these universities are highly qualified and have a history with research, since only he who has already done research can inspire it.  These universities shall be a not-for-profit legal entity, in that case, these universities will be completely merit basis and not exclusive for the wealthy.
  6. 6. BARRIERS  India has poor infrastructure, low literacy levels and labour inflexibilities. So high-volume manufacturing has not taken off yet in a big way  Less availability of scientific and Engineering skills in competitive wages.  In the end, innovation capability majorly depends of the economic flexibilities.  Skill shortages due to lack of effective in-house training programmes.  Lack of effective collaboration with R&D labs. Pressure of short term result and not thinking of the long term result. We observe that 43% of large firms think that excessive government regulation in their industry is an important barrier to Innovation. In addition, only 42% of large firms perceive insufficient external pressure to innovate as an important barrier to Innovation.
  7. 7. How to overcome barriers? • Conducting effective research programmes in different parts of the country can help with the skill shortage and will create awareness about the endless opportunities in Research & Development. • Students must be encouraged to indulge in research at school level itself. • Our education system should be more knowledge oriented than marks oriented. • Ever since independence, only one Indian citizen has won Nobel prize, the main reason is the lack of infrastructure. Steps must be taken to increase the overall infrastructure of the country. • Indian research labs should collaborate with the universities.
  8. 8. INNOVATION IMPACTS AND THEIR SCOPE  Innovation Intensity has grown faster from 2001-02 to 2005-06for services than manufacturing. Further, services firms are more likely to be Highly Innovative, i.e. they have a greater propensity to introduce ‘new to world’ Innovations.  For all the firms in our sample (large firms and SMEs), Innovation has had roughly the same level impact for manufacturing and services firms, in respect of increase in market share and increase in competitiveness.  However, Innovation has led to a greater increase in profitability for manufacturing firms and a greater reduction in costs for service firms.  Further 37.3 % have made breakthrough innovations while 76.4 have made incremental innovation.
  9. 9. Processes and Services: Innovation is occurring in process (i.e. not just in product development) as well as in the services sector. (i.e. not just manufacturing) Although services sector firms have lower Innovation Intensity, they are more likely to be Highly Innovative.  Innovation is most highly concentrated in operations, with sales and marketing being the next most important.  This emphasis on process is a departure from traditional R&D and manufacture centric notions of Innovation.
  10. 10. Intellectual Property: Firms in industries where Innovations are patented have higher Innovation Intensity and are also more likely to be Highly Innovative. Firms that have filed more than 20patents in the last five years have higher Innovation Intensity than those with less than10 filings and are also more likely to be Highly Innovative.