Syllabus: GS3/Science & Technology
Context
- India’s ambitions to become a global innovation powerhouse remain constrained by limited R&D spending, despite possessing one of the world’s largest pools of human capital and a rapidly growing economy.
Scale of the R&D Deficit
- Mismatch Between Population & Research Output: India houses 17.5% of the world’s population but contributes only 3% of global research output.
- It reflects a chronic underutilization of intellectual potential and systemic underinvestment in high-value research.
- Patent Activity (Growth Without Depth): India ranked 6th globally in 2023 for total patent filings (WIPO) with an impressive 15.7% growth rate.
- However, India’s global share remains a mere 1.8%, and when adjusted for population (resident applications per million), it ranks 47th, exposing weak grassroots innovation intensity.
- Investment Crisis: India spends only 0.6 – 0.7% of its GDP on R&D (Gross Expenditure on R&D), one of the lowest among major economies.
- However, China, the United States, South Korea, and Israel spend about 2.4%, 3.5%, 4.2% and 5.4% respectively.
- In contrast, Huawei alone spent $23.4 billion on R&D in 2023, exceeding India’s total combined public and private R&D expenditure.
- Structural Barriers to Innovation:
- Government-dominated R&D: The government sector still drives 63.6% of total funds unlike innovation-driven economies where the private sector contributes over two-thirds of R&D spending.
- The private sector’s 36.4% share reveals a business culture focused on incremental gains rather than disruptive breakthroughs.
- A study commissioned by the Office of the Principal Scientific Adviser found that only about 25% of public-funded R&D institutions support startup incubation, and just 15% support deep-tech ventures.
- Academia-industry Disconnect: India’s universities often produce theoretical research with limited industrial relevance.
- Mechanisms for technology transfer, commercialization, and joint research remain weak.
- Brain Drain & Weak Research Infrastructure: A significant proportion of India’s brightest researchers and engineers continue to migrate abroad for better funding and facilities.
- Domestically, limited high-end research infrastructure, lower salaries, and bureaucratic hurdles deter both talent retention and high-impact research.
- Bureaucratic Bottlenecks: Public R&D funding is plagued by slow approvals and staggered disbursements, making long-term, ambitious research projects difficult to sustain.
- Government-dominated R&D: The government sector still drives 63.6% of total funds unlike innovation-driven economies where the private sector contributes over two-thirds of R&D spending.
- Institutional and Structural Challenges:
- Collaboration with international industry and academia remains limited, with only 15% of institutions engaging in such partnerships.
Related Initiatives & Efforts
- Anusandhan National Research Foundation (ANRF): A flagship initiative under the National Education Policy (NEP) 2020.
- Aims to fund peer-reviewed research across disciplines, especially in underfunded universities and colleges.
- Designed to bridge gaps between academia, industry, and government research bodies.
- Vigyan Dhara Scheme: A unified scheme launched to promote scientific research, innovation, and technology development.
- Focuses on capacity building, translational research, and innovation for societal challenges.
- Research, Development and Innovation (RDI) Fund (₹1 Lakh Crore): Offers low-interest loans to private sector entities investing in deep-tech and basic research.
- Aims to shift India’s R&D model from government-dominated to a more balanced public-private partnership.
- National Access Initiatives: The One Nation One Subscription (ONOS) initiative aims to democratize access to scientific journals and databases for all Indian researchers, reducing barriers to high-quality research.
Way Forward: Building a Culture of Innovation
- Raise R&D Spending to 2% of GDP: India needs to aim to double its R&D – to – GDP ratio to 2% within 5 – 7 years, with the private sector contributing at least 50% of total R&D spending.
- The newly announced ₹1 lakh crore RDI Fund is a promising start, but its impact will depend on efficient targeting toward frontier technologies.
- Launch National Missions in Strategic Domains: India needs to prioritize sustained, mission-mode research in semiconductors; Artificial Intelligence (AI); Quantum Computing; Advanced Materials; and Green Energy.
- Each mission needs to have long-term funding, clear milestones, and strong links to economic and national security goals.
- Reforming Higher Education and Research: Universities need to evolve from teaching-focused institutions into centres of excellence for research. It requires:
- Enhanced PhD funding;
- Competitive faculty research positions;
- Development of state-of-the-art research infrastructure;
- Establishment of industry-sponsored research chairs and joint incubation centres
- Strengthening Intellectual Property Ecosystem: A strong innovation culture demands:
- Simplified patent processes;
- Faster approvals;
- Stronger IP enforcement;
- Financial incentives for successful commercialization;
Conclusion
- India has the talent and the ambition to emerge as a global innovation leader, but it lacks the structural, financial, and cultural foundation required to harness that potential.
- It needs to be devoted to creating an ecosystem that rewards risk-taking, nurtures research, and values intellectual property to become a ‘Viksit Bharat’ by 2047.
| Daily Mains Practice Question [Q] Examine the factors contributing to India’s research and development deficit. What strategic reforms are necessary to align India’s innovation ambitions with its research capabilities? |
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