Group Members: Arun Balachandran, Joseph John, Sunilkumar G, Vimal KG

Innovation in IndiaStatus , Emerging Trends and Challenges

SCOPE OF TOPIC

• R&D vs Innovation

• Current status of R&D and Innovation in India

• Key challenges/barriers for Innovation

• Initiatives by Government and industry

• India as a Global leader in R&D, Innovation

• Breakthrough Innovations Example

R&D vs Innovation - SEMANTICS

'Research And Development - R&D'Investigative activities that abusiness chooses to conduct withthe intention of making a discoverythat can either lead to thedevelopment of new products orprocedures, or to improvement ofexisting products or procedures.

R&D vs Innovation - SEMANTICS

‘Innovation’ is defined as a process by which varyingdegrees of measurable value enhancement is planned andachieved, in any commercial activity. This process may bebreakthrough or incremental, and it may occursystematically in a company or sporadically; it serves toimprove market share, competitiveness and quality, whilereducing costs.

Means: New/Improved Goods/Services,

Operational, Organizational or Managerial Processes

R&D vs Innovation

Innovation can happen across value chain

ADDITIONALLY ON INNOVATION

Innovation cannot often be bought or implanted. It willhappen on its own once the right environment isprovided within an organization or institution forresearch, learning and exploring ways to improve valueprovision along the entire system.

THE IndiaN SCENARIO

S&T BUDGET Expressed as a

Percent of GDP

KNOWLEDGEWORKERS

Expressed perMillion people

PATENTSTATISTICS

India is nowhere

On the Scene

RESEARCHPAPER TRENDS

India barely

Contributes

a good percent in

the Asian Scenario

Research Trends, 2011.

SCIENCE & TECHNOLOGY, INDIA

RESEARCHERS IN NATION AS OF 2007 DATA

1571000

1423000

154800

Researchers in the Country (2007-08)

USA China India

R&D SPEND AS OF 2011 IN USD BILLIONS

405

297

36

R&D Spend in Billion USD’s (2011)

USA China India

MAJOR CHALLENGES

R&D, INNOVATION BARRIERS IN INDIA

Budget Allocation stuck at .9% for R&D - Across the BJP regime led by Atal

Behari Vajpayee in 2003, all the way to the Manmohan Singh regime the Indian Science &Technology budget has stagnated at about .9% of the GDP. The promise to raise it to 2% haspassed on from the 9th plan to the 12th plan with no avail. Significant drops in India’s R&Dbudget allocation over the years. While private sector expenses in R&D is increasing, theIndian Government is not keeping pace with global R&D spends. We’ve reaped thebenefits of major S&T initiatives taken in the past, but in the future do we have projectsnow that we can take benefits off.

The Science & Technology Portfolio, not given due importance –Often as a portfolio lacks good ministers at helm, and underplayed within theGovernment. Not governed by Ministers with the right caliber.

R&D, INNOVATION BARRIERS IN INDIA

Archaic and Outdated Education System – The

educational environment in India, is one that is driven byinstruction systems and formulas, as opposed to one facilitatedby curiosity, exploration and understanding. Politicalinterference in education content in some cases. There is oftena lack of depth in the learning, and the spirit of curiosity is notsparked.

The Brain Drain Scenario – The migration of highly

skilled and educated youth from the better institutions in thecountry abroad in search for better pastures.

R&D, INNOVATION BARRIERS IN INDIA

Lack of a R&D friendly Ecosystem – The nation has very few institutes and

organizations that can create a healthy and internationally comparable environment forgrowth in Research Industry. Very little, R&D friendly policies within the Government.

A lack of Entrepreneurship friendly policies – The NKC sites that start ups

and SME’s are often the hub of innovation, while the government policies that encourageand promote startup and entrepreneurship culture is still in it’s infancy.

R&D, INNOVATION BARRIERS IN INDIA

Indian Universities are just learning shops – As opposed to the practice in

most great universities and institutions abroad, universities are at the forefront ofresearch often partnering with private, public and government sector organizations.

IPR and Patenting Practices on Decline – The pursuit to build indigenous

IPRs and patents in various sectors is taking a backseat, while most international MNC’smake use of Indian Eco-systems and Resources to build their portfolio of the same.

GOVERNMENT INITIATIVES

Govt. INITIATIVEs – INNOVATION and R&D

The National Innovation Council, India – An

Thinktank initiative by the Indian government to create a roadmapfor sustainable innovation from 2010 – 2020 under thechairmanship of Sam Pitroda (former chairman of the NKC).

DST & DSIR takes the Lead – 'Ministry of Science and

Technology'. The Department of Science and Technology (DST)and Department of Scientific and Industrial Research (DSIR) takingthe lead in fostering innovation & R&D in the country throughvarious programs.

Govt. INITIATIVEs – INNOVATION and R&D

New Science, Technology and Innovation Policy – The new policy focusses

on creating a framework that imparts quality knowhow, a better and more appealingresearch atmosphere for professionals, creating better facilitation of private sectorparticipation in R&D etc…

National Jawaharlal Nehru Fellowship Scheme /Professorship Scheme – A scheme envisaged to attract

Indian born skilled and Talented researchers and academiciansback to India for short stints to pursue Research andDevolopment in Indian Institutes and Organizations. (Receivedstrong criticism for ECG Sudarshan, but adopted successfullyby nations like China, Australia Etc…)

NATIONAL INNOVATION COUNCIL – INDIA

The National Innovation Council, India – Some of the

more interesting initiatives and key element the NInC are working arementioned below…

Federal Policy and Incentive Schemes

Access to Capital, Skilled Manpower, Market

Industry & Cluster Innovation Center (CIC)

Building positive Public Private Partnerships (PPP)

State & Sector Level Innovation Cluster Initiatives

SOME OF NiNC

INITIATIVES

INDUSTRYINNOVATION

CLUSTER

DST & DSIR Initiatives – INNOVATION and R&D

DEPARTMENT OF SCIENCE AND TECHNOLOGY (DST)

National Science & Technology EntrepreneurshipDevelopment Board (NSTEDB) - Setting up Incubators in theTechnology Domain. Technology Business Incubatorssupporting Individuals or startups to set up their professionalventures.

Technology Development Board (TDB) -The Board providesfinancial assistance in the form of equity soft loans or grants.

Technology Commercialisation Facilitation Agency by TIFAC(Technology Information Forecasting & Assessment Cell )

DST & DSIR Initiatives – INNOVATION and R&D

DEPARTMENT OF SCIENTIFIC AND INDUSTRIAL RESEARCH (DSIR)

PRISM (Promoting Innovations in Individuals, Start-ups and MSMEs) -Grant for Innovation, prototype to final product (Rs. 2L - 50L)

Industrial R&D Promotion Program

Tax breaks for R&D Initiatives - A significant R&D tax incentive in India isa 200% accelerated deduction on scientific research expenditure incurredby an in-house R&D facility (Biotechnology, Manufacturing Etc.).

Tax exemption for R&D related import equipment's.

MOVING FORWARD

INDIA as A GLOBAL LEADER

The raising of the R&D budget from .9% of GDP to the previously promised 2%or higher at the earliest without further delay.

The government must play a key role by enhancing the number, quality, andmanagement of science schools focussed on science research.

Increased interaction between industry and research establishments isimportant.

INDIA as A GLOBAL LEADER

We must encourage active interaction and exchange with internationalresearch institutions. Cross-continental research cooperation and knowledgesharing is the key.

Eminent international scientists for seminars with selected young researchminds and students in India at least annually.

INDIA as A GLOBAL LEADER

Some small innovations in public policy can go a long way in creating a healthyenvironment for fostering innovation. Re-imagining of structure in thegovernment can go a long way. Egs; Weavers and Craft persons to the tune of35 lakh as poorer cousins of the textile industry.

A sound incentive system for the corporate sector involved in scientific R&Dwith viable incentives such as special economic zones and technology parksfor R&D establishments.

INDIA as A GLOBAL LEADER

Seed funding for Indian returnees from abroad who want to focus on the fieldof Research and Development within the country. Helping them get started bycreating funding systems that help create a system that encourages R&D.

Root seeking Camps in multiple countries, to help Indian knowledgeprofessionals abroad get close to their roots, in many countries to woo themback.

INDIA as A GLOBAL LEADER

The importance of rewards and recognition for scientific research, as ameasure to encourage youngsters to consider careers in research. PrivateSector can pay a patron here.

Translating Universities to the forefront research, partnering with Private,Public and Government sector Units to roll out Innovation and NewTechnology

Stressing on Importance of Alumni, the best universities in the world are oftenas strong as the Alumni that return to be a part of the Universities future.

INDIAN INNOVATIONS

BREAKTHROUGH INNOVATIONS

J.K. Tripathy, IPS officer – Reducing Crime Rates in Trichy, by using beatofficers and creating a sense of ownership (40% Crime drop in 2Yrs)

Tata’s Titan Edge – The World’s slimmest Watch, done when the Swisssaid it can’t be done (3.5mm)

Ecofemme – Eco-friendly Sanitary pads that do not contribute togrowing waste in the environment

Arvind Eye Hospital – Cataract Surgery made efficient and Effective

Dainik Bhaskar – From survey to product customization to No. 01

BREAKTHROUGH INNOVATIONS

Shantha Biotechnics – Discovered a low-cost Hepatitis-B vaccinethereby revolutionizing the Indian biotechnology Industry

Su-kam India – Pioneers of the first quality Inverters built with primaryfocus on the Indian conditions (by entrepreneur – Kunwer Sachdev)

Trash to Terracotta, Bangalore – A pro composting initiative by storingwaste in Teracotta bins to create organic compost.

GCFT’s Oota from your Thotta Initiative – Spearheaded by Dr. BNViswanath, it focusses on growing food for home consumption on yourterrace or in small allocated garden spaces

INNOVATION EXTRA’S

DISRUPTIVE INNOVATION TECHNIQUES (FORBES)

There are 5 key factors that often drivedisruptive innovations

Questioning

Observing

Networking

Experimenting

Associational thinking

INTRODUCTION To jugaad INNOVATION

Jugaad Innovation

or Frugal innovation is

about achieving maximum

impact with minimal resources

PRINCIPALS jugaad INNOVATION

The fundamental principals behind Jugaad Innovation

REFERENCES

“ This presentation has been made possible through the information andideas derived from a lot of articles, journals, books and magazine referencesfrom many sources ranging from the National Innovation Councildocuments, Policy Papers, Forbes Articles, The Hindu, The Financial Express,The Times, Books like Jugaad Innovation, Breakthrough Innovations in Indiaand very many numerous other Resources… All mostly that were madeaccessible to us by Prof. Sthanu R Nair… We hope this document helps you geta better picture of the Indian Scenario on Innovation”

INNOVATION IN INDIA- S T A T U S , E M E R G I N G T R E N D S & C H A L L E N G E S -

SUBMITTED AS A PART OF ‘ECONOMIC ENVIRONMENT’ PROJECT

by Arun Balachandran, Joseph John, Sunilkumar G, Vimal KG