Syllabus: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment.
Context
- India aspires global power status but faces a chronic research and development deficit.
- Despite 17.5% of global population, India contributes only 3% of world research output.
- This gap reflects failure to convert demographic dividend into high-value knowledge creation.
Intellectual Property and Innovation Output
- India ranked sixth globally in patent filings (2023) with 64,480 applications.
- Patent filings grew rapidly (+15.7%), but from a low base.
- India’s share remains just 1.8% of global patent applications.
- Resident patents per million population rank 47th, indicating weak domestic innovation depth.
R&D Expenditure Deficit
- India’s Gross Expenditure on R&D stagnates at 0.6–0.7% of GDP.
- This lags behind China (2.4%), USA (3.5%), and Israel (5.4%).
- A single multinational’s R&D spending exceeds India’s entire national R&D expenditure.
- Lack of concentrated, strategic investment weakens technological competitiveness.
Public–Private Imbalance
- Government sector contributes 63.6% of R&D funding in India.
- Private sector contributes only 36.4%, unlike global innovation economies.
- Industry prefers incremental innovation, technology imports, and low-risk strategies.
Structural Ecosystem Constraints
- Academia–industry disconnect limits technology transfer and commercialisation.
- Research remains theoretical, poorly aligned with market-driven needs.
- Absence of collaborative culture blocks movement from lab to marketplace.
- Brain drain persists due to limited infrastructure, funding, and career incentives.
- Bureaucratic delays cause slow approvals and irregular fund releases.
Path Forward and Policy Direction
- Raise R&D spending to at least 2% of GDP within five to seven years.
- Increase private sector share to minimum 50% through incentives and grants.
- Ensure effective deployment of the ₹1 lakh crore RDI Fund.
- Focus on national missions in semiconductors, AI, quantum technologies, materials, and green energy.
Role of Universities and IP Culture
- Universities must evolve into research-intensive institutions, not teaching-only centres.
- Expand PhD funding, research infrastructure, and industry-sponsored chairs.
- Simplify patent processes and strengthen commercialisation incentives.
Conclusion
- Without structural, financial, and cultural reforms, India’s innovation ambitions will remain unrealised.