Survey on R&D Postponed Due to Weak Response from Private Sector

Syllabus: GS3/Science and Technology

Context

• The Ministry of Science and Technology (MoST) has postponed the publication of its latest science and technology analysis due to a weak response from private Research & Development (R&D) firms.
  • The Ministry of Science and Technology conducts a periodic National Science and Technology Survey to gauge the state of scientific research in India.
  • The last report was published in 2023, but it only included data up to 2021.

Findings of the 2023 Survey

• In 2020–21, India spent only 0.64% of its GDP on scientific research – the lowest since 1996 (excluding defence research). 
• Industrially developed countries such as the United States, China, Japan, Finland, South Korea, and Germany spend anywhere from 1.5% to 3.5% of their GDP on R&D.
• Another concern is the funding mix: About 75% of India’s R&D spending comes from the public sector, whereas in most advanced economies, private firms contribute the major share.

Need for Funding in R&D

• Economic Growth: Drives new industries, improves productivity, and enhances global competitiveness.
• Technological Advancement: Facilitates breakthroughs in fields like AI, biotechnology, and renewable energy.
• Social Challenges: Helps address poverty, healthcare, education, and environmental sustainability issues.
• Job Creation: Innovation generates employment opportunities and stimulates entrepreneurship.
• Global Positioning: Positions India as a global leader in science, technology, and knowledge.
• Attracts Investment: Promotes foreign and domestic investments in research-driven sectors.

Reasons for Low Funding

• High Dependence on Public Sector: About 75% of India’s R&D funding comes from the government.
  • Private sector contribution is weak compared to developed economies where industries lead R&D investment.
• Low Private Sector Incentives: Indian firms focus more on short-term profits than long-term innovation.
  • Limited risk appetite due to high cost of R&D vs. relatively cheaper technology imports.
• Economic Structure of India: India’s economy is still service-dominated, while manufacturing-driven economies invest more in R&D.

Implications of Low Funding

• Limited Research Output: Slows down indigenous innovations.
• Infrastructure Deficit: Outdated labs, insufficient research facilities.
• Brain Drain: Talented researchers migrate for better opportunities.
• Weak Industry-Academia Collaboration: Stifles innovation ecosystems.
• Skill Gap: Lack of high-quality researchers and trained manpower.
• Global Competitiveness: India lags behind innovation leaders.

Government Initiatives

• Research, Development and Innovation (RDI) Scheme: Approved with a ₹1 lakh crore corpus, this scheme aims to energise private-sector R&D and deep-tech startups.
  • It offers long-term, low- or zero-interest loans, equity investments, and funds a new Deep-Tech Fund of Funds via the Anusandhan National Research Foundation (ANRF).
• National Quantum Mission: Allocated ₹6,003.65 crore for 2023–31, to advance quantum technologies through scientific and industrial R&D.
• Atal Innovation Mission (AIM): To foster innovation at the grassroots level by providing support to students, startups, and entrepreneurs. 
• The National Mission on High-Yielding Seeds will focus on strengthening the research ecosystem and developing high-yielding, pest-resistant, and climate-resilient seeds, aligning with DBT’s efforts in agricultural biotechnology.
• National Manufacturing Mission (NMM): Aligned with the government’s ‘BioE3 Policy’ for fostering high-performance biomanufacturing, the NMM announced in the Budget aims to accelerate technology development and commercialisation. 
• The Seaweed Mission and Learn & Earn Program empower women entrepreneurs, supporting economic inclusion. 

Way Forward

• To raise R&D spending, there is a need to have increased partnerships with the private sector. 
• Efforts are being made to create better synergies between industry, research labs, and educational institutions to broaden both research activity and the funds to support it.

Source: TH