Innovation Policy And Strategy - Indian Perspective
Dr. PARVEEN ARORA DIRECTOR (SC-F), NSTMIS Department of Science & Technology (DST) Government of INDIA Parora@nic.in -1-
OUTLINE ~ Initiatives for Promotion of Innovation – An Overview ~ Globalization of Innovation ~ Challenges ~ Strategies
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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”
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S&T POLICY - VISION
‘
JAWAHARLAL NEHRU
‘
FIRST PRIME MINISTER OF INDIA
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. -4-
DST- Policy making body for S&T SCIENTIFIC PROGRAMME SCIENCE & TECHNOLOGY POLICY
PROFESSIONAL BODIES
INTER-SECTORAL ADVISORY COMMITTEE OF GOVT DEPTTs/ MINISTRIES
SCIENTIFIC SERVICES DEPARTMENT OF SCIENCE & TECHNOLOGY
STATUTORY BOARD
AUTONOMOUS S&T INSTITUTIONS -5-
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)
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Innovation policy /Instruments Period
Horizontal Policies/Instruments
1947- 1980 (Science Approach)
Oriented
SPR(1958), TPS(1993), Drug and Cosmetics Act (1940), Industrial policy( 1948 and 1956)
1980-1995
HGT, Industrial Policy( 1991) Education Policy (1986)
1995-2000
DPRP (1994), NIMTLI (2000)
(Technology Centric Approach)
Vertical Policies/Instru ments
IPA (1970)
NBDB(1983), DBT(1986) NBRI
(Technology Centric Approach)
2000 beyond (Systemic Approach to S&T Innovation)
STP(2003), Tepp, NIF GLP NMCC(2005)
Regulatory Framework
Biotechnology Vision(2001), DNBS(2005), SIBRI(2006)
WTO(1995), Patents Amendment(1999) Patents Amendment (2002 and 2005) , Ethical Guidelines
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S&T Innovation Initiatives – Focus Pre- Reforms -1991
Post Reforms-1991
R&D incentives focus – generation of technologies in the public funded res. Labs for transfer in the industrial sector
Private sector participation in R&D enhanced
In-house R&D in industry was to encourage for absorption, adaptation and assimilation.
R&D driven business
Emphasis on self-reliance – indigenous tech. development
Collaborative research ; Networked model, PPP
Regulation and restrictions in trade and industrial development
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
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India’s Innovative Performance
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40000
1.00
35000
0.95
30000
0.90
25000
0.85
20000
0.80
15000
0.75
10000
0.70
5000
0.65
0
0.60
PERCENTAGE OF GNP
R&D EXPENDITURE (RS. CRORES)
NATIONAL R&D EXPENDITURE AND ITS PERCENTAGE TO GNP
90-91 95-96 96-97 97-98 98-99 99-00 00-01 01-02 02-03 03-04 04-05 05-06 06-07* 07-08* YEAR
R&D Expenditure
GNP (%)
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NATIONAL R&D EXPENDITURE SECTOR- WISE, 2005-06
Central Govt. 57%
Private Sec. Ind. 26%
Higher Edu. Sec. 4%
Public Sec. Ind. 5% Central Govt.
Private Sec. Ind.
State Govt. 8%
State Govt.
Total = Rs. 28776.65 Crores
Public Sec. Ind.
Higher Edu. Sec.
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R&D EXPENDITURE AS PERCENT OF GDP FOR SELECTED COUNTRIES, 2004-07 5 Israel
4.5
R&D EXPENDITURE AS % GDP
4
Sweden
3.5
Japan Korea, Rep.
3 2.5
Austria
Denmark Canada
2
United States
Germany
Singapore
France United Kingdom
Australia Czech Rep.
1.5
0
Russian Fed. Italy
1 0.5
China
Brazil
Hungary
Spain
India
Argentina
Pakistan Egypt
Sri Lanka
Venezuela
COUNT RIES - 12 -
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Slope change is more than five times
Good news is that citation frequency has doubled during the last few years - 16 -
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 (www.sciencewatch.com). • 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.” - 17 -
Patents Filed (Number)
Patents granted
20 04 20 05 05 20 06 06 20 07 07 -08
200 0 200 -01 2001-02 2002-03 3-0 4 200 4 200 -05 2005-06 2006-07 7 -0 8
40000 35000 30000 25000 20000 15000 10000 5000 0
18000 16000 14000 12000 10000 8000 6000 4000 2000 0
20 00 20 01 01 20 02 02 20 03 03 -04
Patents Filed (Number)
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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
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INDIA RISING Next Billion; Local Dynamos; Global Challengers GDP vs GDP per capita in 2002 GDP (US$ Bn) 14000
GDP vs GDP per capita in 2050 GDP (US$ Bn) 60000 China
12000
50000 US
10000
US
40000 India
8000 30000
6000 Japan
4000 2000
China
India
Brazil Italy Russia
0 0
20000
Italy
Germany
Germany
France
Russia
10000 UK
Japan
Brazil
France
UK
0
10000 20000 30000 40000 50000 GDP per capita (US$)
0
20000
40000
60000
80000 100000
GDP per capita (US$) Bubble size corresponds to GDP size
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FUTURE ENERGY FIELDS (Young Population 2020) Potential surplus population in working age group (2020) Germany -3 Mn UK
-2 Mn
0Mn
-1 Mn Iraq
Ireland
US
-17Mn
France Spain
-3 Mn -3 Mn
2Mn -2 Mn
Italy
5Mn
Czech Republic
-6 Mn
Turkey 2Mn Israel Iran 0Mn 3Mn
4Mn Egypt
Mexico
Russia
China Pakistan 19 Mn
47 Mn
-10 Mn
-9 Mn
Japan
5Mn
7 Mn Bangladesh
Philippines
India
4Mn Vietnam 1Mn
Malaysia 3Mn
5Mn Indonesia
Brazil -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
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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 - 22 -
“PAHALE INDIA” : INDIA FIRST Integration with the world
Exclusive growth and development
FIREFLIES ARISING
Inclusive growth and development
Isolation for the world - 23 -
Thanks for your patient hearing - 24 -