Innovation Policy And Strategy. - Indian Perspective

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1 Innovation Policy And Strategy - Indian Perspective Dr. PARVEEN ARORA DIRECTOR (SC-F), NSTMIS Department of Science & Technology (DST) Government of INDIA Parora@nic.in - 0 -

2 OUTLINE ~ Initiatives for Promotion of Innovation An Overview ~ Globalization of Innovation ~ Challenges ~ Strategies - 1 -

3 Initiatives for Promotion of Innovation An Overview Examine the policies, institutions and instruments that have shaped the national innovation system (to understand the National specifities) ~ Pre- Independence ~ Post Independence (after 1947) Broader definition of Innovation in developing context to include knowledge its creation and commercialization for new to world and absorption and diffusion for new to market - 2 -

4 S&T POLICY - VISION FIRST PRIME MINISTER OF INDIA JAWAHARLAL NEHRU The Progress of Science & its offspring technology is changing the way man thinks of himself and the world. Science shall put an end to superstition, rituals and dogma

5 DST- Policy making body for S&T SCIENTIFIC PROGRAMME SCIENCE & TECHNOLOGY POLICY SCIENTIFIC SERVICES PROFESSIONAL BODIES DEPARTMENT OF SCIENCE & TECHNOLOGY STATUTORY BOARD INTER-SECTORAL ADVISORY COMMITTEE OF GOVT DEPTTs/ MINISTRIES AUTONOMOUS S&T INSTITUTIONS - 4 -

6 Determinants of NSI knowledge support, commercialization of research, collaborative research, financial support, regulation, IPR and ethical issues etc in the Indian context. Pre liberalization ( prior 1991) Post - liberalization (post 1991) - 5 -

7 Innovation policy /Instruments Period Horizontal Policies/Instruments Vertical Policies/Instru ments Regulatory Framework (Science Approach) Oriented SPR(1958), TPS(1993), Drug and Cosmetics Act (1940), Industrial policy( 1948 and 1956) IPA (1970) (Technology Centric Approach) HGT, Industrial Policy( 1991) Education Policy (1986) NBDB(1983), DBT(1986) (Technology Centric Approach) DPRP (1994), NIMTLI (2000) NBRI WTO(1995), Patents Amendment(1999) 2000 beyond (Systemic Approach to S&T Innovation) STP(2003), Tepp, NIF GLP NMCC(2005) Biotechnology Vision(2001), DNBS(2005), SIBRI(2006) Patents Amendment (2002 and 2005), Ethical Guidelines - 6 -

8 S&T Innovation Initiatives Focus Pre- Reforms R&D incentives focus generation of technologies in the public funded res. Labs for transfer in the industrial sector In-house R&D in industry was to encourage for absorption, adaptation and assimilation. Emphasis on self-reliance indigenous tech. development Regulation and restrictions in trade and industrial development Post Reforms-1991 Private sector participation in R&D enhanced R&D driven business Collaborative research ; Networked model, PPP Ease on restrictions and regulations Horizontal S&T focus Sectoral focus DBT, Health research, MoES - pharma, Auto, IT, BT Globalization of innovation - MNCs centers, FDI, M&A, Outsourcing of R&D etc S&T Missions, Science for Societal solutions - 7 -

9 India s Innovative Performance - 8 -

10 NATIONAL R&D EXPENDITURE AND ITS PERCENTAGE TO GNP R& D EXPENDITURE (RS. CRORES) PERCENTAGE OF GNP * 07-08* YEAR 0.60 R&D Expenditure GNP (%) - 9 -

11 NATIONAL R&D EXPENDITURE SECTOR- WISE, Central Govt. 57% Private Sec. Ind. 26% Higher Edu. Sec. 4% Public Sec. Ind. 5% State Govt. 8% Total = Rs Crores Central Govt. Private Sec. Ind. State Govt. Public Sec. Ind. Higher Edu. Sec

12 R&D EXPENDITURE AS PERCENT OF GDP FOR SELECTED COUNTRIES, Israel 4 Sweden R&D EXPENDITURE AS % GDP Austria Denmark Germany Canada France Australia Czech Rep. China Brazil Hungary India Japan Korea, Rep. Singapore Russian Fed. Spain Italy United States United Kingdom Argentina Egypt Pakistan Sri Lanka Venezuela COUNT RIES

13 - 12 -

14 - 13 -

15 - 14 -

16 Slope change is more than five times Good news is that citation frequency has doubled during the last few years

17 Thomson Reuters National Science Indicators Indian scientists have made major strides both in quality and productivity since 2000, according to the latest figures from the Science Watch tracking service ( The number of papers produced by Indian scientists was more or less stagnant from 1985 to 2000 but jumped from 17,000 in 2001 to 27,000 in 2007 (see chart). Citation rates are also rising across the board more than doubling, for example, in biology and biochemistry. The biggest gains have come in the physical sciences, especially materials science. Nobuko Miyairi, a consultant at Thomson Reuters, which publishes ScienceWatch, calls it noteworthy that Indian science is fairly well balanced between life sciences and physical sciences, because most of the rest of Asia tends to be more heavily focused on physical sciences

18 Patents Filed (Number) Patents Filed (Number) Patents granted

19 Challenges Global - Economic recession - India in renewed group of nations G-20 replacing G-8 - climate change, water, energy, security and peace Local - Problems of physical infrastructure, education & skill development - Inclusiveness of innovation

20 INDIA RISING Next Billion; Local Dynamos; Global Challengers GDP vs GDP per capita in 2002 GDP (US$ Bn) GDP vs GDP per capita in 2050 GDP (US$ Bn) China US India US Germany China India Italy UK Brazil Russia France Japan Brazil Italy Germany France Russia UK Japan GDP per capita (US$) GDP per capita (US$) Bubble size corresponds to GDP size

21 FUTURE ENERGY FIELDS (Young Population 2020) Potential surplus population in working age group (2020) Germany -3 Mn US -17Mn 5Mn Mexico France Spain UK 0Mn Ireland -3 Mn -3 Mn -2 Mn Czech Republic -1 Mn Turkey Iraq 2Mn 2Mn Israel 0Mn Iran -2 Mn 3Mn Italy 4Mn Egypt Pakistan Russia -6 Mn China 19 Mn 7 Mn 47 Mn India -10 Mn Malaysia Bangladesh 1Mn -9 Mn Japan 5Mn Philippines 4Mn Vietnam 3Mn Brazil Indonesia 5Mn -0.5 Mn Australia Note: Potential workforce surplus is calculated keeping the ratio of working population (age group 15 59) to total population constant and under the assumption that this ratio needs to be broadly constant to support economic growth. Therefore, India will have 47 Million more people in the working age group/total population by 2020 compared to today, while France will have a deficit of 3 Million people in the working age group compared to today. Source: U.S. Census Bureau; BCG Analysis

22 Innovative Strategies Create incentive structure focusing on : ~ Revamping education system focusing on creativity and innovativeness (pool of human resource for sustained innovation ) ~ Improving infrastructure physical and research involving private participation ~ Integration with International Innovation System - modes : Diaspora, collaborations, global fora s, learning from role models etc

23 PAHALE INDIA : INDIA FIRST Integration with the world FIREFLIES ARISING Exclusive growth and development Inclusive growth and development Isolation for the world

24 Thanks for your patient hearing

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