The Director of the Indian Institute of Management, Bangalore, emphasized the critical need for India to invest more in Research and Development (R&D) during the 82nd Council for Scientific and Industrial Research (CSIR) Foundation Day.
This call to action was backed by data from the Global Innovation Index (GII) 2022 report, which highlighted that India’s R&D expenditure was only 0.7% of its GDP in 2018. In contrast, innovation leaders like China are spending as much as 2.4% of their GDP on R&D.
Key Challenges:
Lack of R&D in Key Industries: In India, R&D investments are primarily concentrated in the pharmaceutical and transport sectors, whereas globally, high R&D expenditures are found in industries like semiconductors, electronics, and Information Technology.
Government-Driven R&D: Unlike in other countries where the business sector is the primary driver for R&D, in India, this role is largely played by the government. This restricts the industry from taking up more responsibility for R&D.
Potential Benefits:
Increased Global Ranking: With a stronger focus on R&D, India has the potential to improve its Global Innovation Index ranking and become a key player in innovative fields.
Industry Growth: A broader focus on R&D can potentially diversify India’s industry base, making the country competitive in sectors like IT, semiconductors, and electronics.
By addressing these challenges and capitalizing on the potential benefits, India can certainly pave the way for becoming an innovation powerhouse.
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