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National Innovation Programs: The Challenge from India Roundtable on Technology, Innovation, and American Primacy May 14, 2008 Adam Segal Council on Foreign Relations [email protected] Indian Innovation No one “national” innovation system – Technological, industrial, and regional diversity – Role of globalization What type of innovation? – New to the world - islands of excellence in biotechnology, pharmaceuticals, automotive components, information technology – New to the market-innovations in process and organizational models. “Smartest ideas will be in the deployment not the development of technology.” Inputs and Outputs Researchers in R&D, 2003 India 117,528 China 926,252 R&D researchers per million population, 2004 119 708 Spending on R&D ($ billions), 2004 5.9 27.8 Spending on R&D (percentage of GDP), 2004 0.85 1.44 Scientific and technical journal articles, 2003 12,774 29,186 R&D spending ($ thousands) per scientific and technical article 460 953 Patents granted by US Patent Office, 2004 376 597 R&D spending ($ millions) per patent granted 15.6 46.6 Engineering, R&D, and software development revenue [billion USD] 8 6 4 2 2.5 3.1 4 4.9 0 2003-04 2004-05 2005-06 2006-07 Source: NASSCOM Domestic Exports Distribution of R&D 1.2 1 0.099 0.049 0.199 0.8 Higher Education 0.6 Industry 0.683 Government 0.4 0.753 0.2 0.218 0 CHINA INDIA Import of capital goods/GDP, 2004 Mexico 14.2 ROK 11.1 China 13.1 India 3.1 Brazil 3.8 0 5 10 15 Percent High-tech exports/manufacturing trade, 2003 Mexico 21.3 ROK 32.2 China 27.1 India 4.8 Brazil 12 0 5 10 15 20 25 30 35 Percent Source: Unleashing India’s Innovation, World Bank, 2007 Manufacturing firms offering on-job training ROK (2005) 42.3 92.4 China (2003) India (2006) 15.6 59.1 Brazil (2003) 0 20 40 60 80 100 Percent Source: Unleashing India’s Innovation, World Bank, 2007 th Investment-11 Five Year Plan (2007-2012) Overall increase of 400% for science and technology from 10th to 11th plan Increase R&D expenditures from 0.8% to 1.3% GDP. Goal of 2% Funding for basic science to triple current level of ~$500 million; funding for Dept of Biotechnology 1.5 billion Big Push on Education 11th Five Year Plan ~$760 million 2 more ISERS (+3 already approved) 8 additional IITs (16) 7 additional IIMs (14) National Institute of Pharmaceutical Education and Research (6) 20 additional IIITs 30 Universities Government policy Basic Research – SERC or other NSF-like Fund, FIST Growth of Public-Private Partnerships in R&D – TIFAC-CORE (Centres of Relevance and Excellence) – New Millennium Indian Technology Leadership Initiative (CSIR) – Society for Innovation and Development/IISc Strengthening of Innovation Strategy: – STEP/TBI; TePP, HGT, PATSER, SBIRI, and others Notes from the Field “Public sector science not yet touched by economic concerns.” “Lots of start-ups but no scale.” “Knowledge beyond technology” “Too much success in service” “Government knows it needs to help, but doesn’t know how.”