8/12/2019 Thoughts on Indian STI Future
1/38
Science, Technology andScience, Technology andInnovation LandscapeInnovation Landscape
April 2014April 2014 Thoughts on STIThoughts on STI
Macro economics of Positioning IndianMacro economics of Positioning IndianScience, Research and Innovation in GlobalScience, Research and Innovation in Global
spacespace
T Ramasami, Department of Science andT Ramasami, Department of Science andTechnology, GoITechnology, GoI
8/12/2019 Thoughts on Indian STI Future
2/38
Positioning India inPositioning India inglobal STI spaceglobal STI space
India is currently a fringe player in global R&DIndia is currently a fringe player in global R&Dspace. Concerns are often expressed.space. Concerns are often expressed.
The Full Time Equivalent R&D professionals inThe Full Time Equivalent R&D professionals inIndia was estimated 1 54 000 in 2008India was estimated 1 54 000 in 2008
April 2014April 2014 Thoughts on Indian STIThoughts on Indian STI
Share of private sector into R&D is about 34% ofShare of private sector into R&D is about 34% ofGERD as against the global benchmarks of 65GERD as against the global benchmarks of 65--80%80%
Indias share of inputs into R&D are@ less thanIndias share of inputs into R&D are@ less than2% and outputs are generally at 22% and outputs are generally at 2--4% levels4% levelswith lower global share of global R&D outcomeswith lower global share of global R&D outcomesin quality space.in quality space.
8/12/2019 Thoughts on Indian STI Future
3/38
How to position India inHow to position India inglobal R&D space?global R&D space?
April 2014April 2014 Thoughts on STIThoughts on STI
Quantum and Quality termsQuantum and Quality terms
This is a million dollar question withThis is a million dollar question withperhaps difficult answersperhaps difficult answers
8/12/2019 Thoughts on Indian STI Future
4/38
High Density
Highinvestment
Path 4
4
,000FTE/mil
April 2014April 2014 Thoughts on Indian STIThoughts on Indian STI
Lowinvestmentlow density
Low densityhighinvestment
Path 1
Path 2
Path 3
550FTE/
mil
110
0FTE/mil
2,300FTE/
mil
8/12/2019 Thoughts on Indian STI Future
5/38
Analysis of Current situationAnalysis of Current situationin STI landscape of Indiain STI landscape of India
Current investments per FTE at ~1% GDP levelsCurrent investments per FTE at ~1% GDP levelsmatch better than global benchmarks of~ 150match better than global benchmarks of~ 150000 US$ at PPP for the current FTE size.000 US$ at PPP for the current FTE size.
Cost to Countr of a rofessor as ratio of erCost to Countr of a rofessor as ratio of er
April 2014April 2014 Thoughts on Indian STIThoughts on Indian STI
capita GDP is one of the highest in the worldcapita GDP is one of the highest in the world Quantitative InterQuantitative Inter--relationships between GERDrelationships between GERD
and GDP in India are yet to be establishedand GDP in India are yet to be established
The size of Full Time Equivalent per millionThe size of Full Time Equivalent per millionpopulation of India is lower than global benchpopulation of India is lower than global benchmarks. Right sizing FTE density is as crucial as themarks. Right sizing FTE density is as crucial as thedoubling % GERD/GDP.doubling % GERD/GDP.
8/12/2019 Thoughts on Indian STI Future
6/38
Scenario setting for Growth profilesScenario setting for Growth profiles
for Indian STI landscape for 1.3for Indian STI landscape for 1.3billion Indian populationbillion Indian population
Scenario 1: Path1Scenario 1: Path1 Likely intensity growth to @ 2% GDP, 7.5 lakh FTEsLikely intensity growth to @ 2% GDP, 7.5 lakh FTEs
Scenario 2: Path 2Scenario 2: Path 2
April 2014April 2014 Thoughts on Indian STIThoughts on Indian STI
Rea iza e intensity growt to GDP, 1 a sRea iza e intensity growt to GDP, 1 a sFTEsFTEs
Scenario 3: Path 3Scenario 3: Path 3 OverOver--ambitious growth to @2% GDP, 30 lakhs FTEsambitious growth to @2% GDP, 30 lakhs FTEs
Scenario 4: Path 4Scenario 4: Path 4 Unrealistic growth rates to @2% GDP, 52 lakhs FTEsUnrealistic growth rates to @2% GDP, 52 lakhs FTEs
8/12/2019 Thoughts on Indian STI Future
7/38
Scenario 1: LikelyScenario 1: Likelyintensity growth settingintensity growth setting
@1,50,000 US$ per FTE per year for 2%@1,50,000 US$ per FTE per year for 2%GERD/GDP, 5.6 Trillion US$ economy wouldGERD/GDP, 5.6 Trillion US$ economy wouldneed a FTE strength of R&D personnel atneed a FTE strength of R&D personnel at7,50,000. This FTE strength for 1.3 billion7,50,000. This FTE strength for 1.3 billion
April 2014April 2014 Thoughts on Indian STIThoughts on Indian STI
population would accord a FTE millionpopulation would accord a FTE millionpopulation of ~550.population of ~550. Increasing FTEs from the current 1,70,000 to 7,50,000Increasing FTEs from the current 1,70,000 to 7,50,000
levels is a nonlevels is a non--trivial challengetrivial challenge
This would call for investing into latent R&D potentialsThis would call for investing into latent R&D potentialsresiding in academic sectorresiding in academic sector
At this FTE size India would already emerge as theeAt this FTE size India would already emerge as theefourth largest STI poolfourth largest STI pool
8/12/2019 Thoughts on Indian STI Future
8/38
Scenario 2: FTE Intensity toScenario 2: FTE Intensity tomatch large populous nationsmatch large populous nations
For FTE/million ratio of 1100 for 1.3 billionFor FTE/million ratio of 1100 for 1.3 billionpopulation, FTEs resource of 1.4 million matchingpopulation, FTEs resource of 1.4 million matchingthe current FTE of the US is required.the current FTE of the US is required. This would call for already an investment of US$ 210This would call for already an investment of US$ 210
April 2014April 2014 Thoughts on Indian STIThoughts on Indian STI
billion in PPP terms or about US$ 70 billion in real termsbillion in PPP terms or about US$ 70 billion in real terms For 2% GERD/GDP ratio, US$ 210 billion in PPP termsFor 2% GERD/GDP ratio, US$ 210 billion in PPP termswould call for a GDP of 10.5 trillion in PPP terms or 3.5would call for a GDP of 10.5 trillion in PPP terms or 3.5trillion in current conversion terms; which is realizabletrillion in current conversion terms; which is realizableover ten year period for India at realizable GDPover ten year period for India at realizable GDPgrowth rates.growth rates.
9 fold increasing in FTEs at the current GERD/FTE value9 fold increasing in FTEs at the current GERD/FTE valueis necessary. This would call for many new mechanismsis necessary. This would call for many new mechanisms
8/12/2019 Thoughts on Indian STI Future
9/38
Scenario 3: OverScenario 3: Over--Ambitious Growth settingAmbitious Growth setting
For a FTE per million ratio of 2300, India wouldFor a FTE per million ratio of 2300, India wouldneed about 30 lakhs at 1.3 billion population.need about 30 lakhs at 1.3 billion population.
For 30 lakhs FTEs @1,50,000 US$/FTE and 2%For 30 lakhs FTEs @1,50,000 US$/FTE and 2%GERD GDP ratio India would need a 7.5 trillionGERD GDP ratio India would need a 7.5 trillion
April 2014April 2014 Thoughts on Indian STIThoughts on Indian STI
US$ GDP at the current cost termsUS$ GDP at the current cost terms This would call for a large scale relocation of R&DThis would call for a large scale relocation of R&D
service systems of the world to India as well as R&Dservice systems of the world to India as well as R&Dled growth of Indian economyled growth of Indian economy
While it is overWhile it is over--ambitious, growth by an order ofambitious, growth by an order ofmagnitude seems to have happened elsewhere in themagnitude seems to have happened elsewhere in theworld. Will India follow this path? It may be a mootworld. Will India follow this path? It may be a mootquestion of some interest.question of some interest.
8/12/2019 Thoughts on Indian STI Future
10/38
Scenario 4: UnrealisticScenario 4: Unrealisticgrowth rates of STI in Indiagrowth rates of STI in India
For a FTE/ million ratio of 4000 @ 2%For a FTE/ million ratio of 4000 @ 2%GERD/GDP, India would need a FTE of 52 lakhGERD/GDP, India would need a FTE of 52 lakh
population. This would call for a global currentpopulation. This would call for a global current
April 2014April 2014 Thoughts on Indian STIThoughts on Indian STI
popu ation o FTEs in R D personne at near ypopu ation o FTEs in R D personne at near y50%. This is unlikely and not realistic even if50%. This is unlikely and not realistic even if
financial resources were to be some how madefinancial resources were to be some how made
available.available. In other words, India is unlikely to reach the highIn other words, India is unlikely to reach the highdensity high investment quadrant for some time comedensity high investment quadrant for some time come
8/12/2019 Thoughts on Indian STI Future
11/38
Some basic factsSome basic facts
Doubling GERD/GDP ratio to 2% is notDoubling GERD/GDP ratio to 2% is notnecessarily beneficial without increasing the FTEsnecessarily beneficial without increasing the FTEsof R&D professionals/million population to someof R&D professionals/million population to somewhere in the range of 550where in the range of 550--11001100
April 2014April 2014 Thoughts on Indian STIThoughts on Indian STI
Doubling without FTE expansion would meanDoubling without FTE expansion would meanlarger GERD per FTE without attended benefitslarger GERD per FTE without attended benefits
Mere expansion of FTE volume without economicMere expansion of FTE volume without economicreturns is not sustainablereturns is not sustainable
FTE expansion should lead to creation of jobs,FTE expansion should lead to creation of jobs,wealth and societal value through R&D outputswealth and societal value through R&D outputs
8/12/2019 Thoughts on Indian STI Future
12/38
Doubling GERD in IndianDoubling GERD in IndianSTI space: DilemmasSTI space: Dilemmas
Expanding FTEs from the current levels to say 550 toExpanding FTEs from the current levels to say 550 to1100 per million population of India in a finite period of1100 per million population of India in a finite period oftime is a nontime is a non--trivial challenge. It could be accomplishedtrivial challenge. It could be accomplishedthroughthrough
April 2014April 2014 Thoughts on Indian STIThoughts on Indian STI
Enrolling latent potentials in academic and innovation sectorsEnrolling latent potentials in academic and innovation sectors Expanding R&D sector in the public and private sector spaceExpanding R&D sector in the public and private sector space
Enabling relocation of R&D capacities from elsewhereEnabling relocation of R&D capacities from elsewhere
Expansion without attended investments per FTE wouldExpansion without attended investments per FTE would
mean spreading resources thin without valuemean spreading resources thin without value Investment of GERD without expansion would amountInvestment of GERD without expansion would amount
injudicious use of scarce resourcesinjudicious use of scarce resources
8/12/2019 Thoughts on Indian STI Future
13/38
What India may attempt inWhat India may attempt inglobal R&D investment space?global R&D investment space?
FTE/million population ratio of 550 to 1100 forFTE/million population ratio of 550 to 1100 fora 1.3 billion populationa 1.3 billion population
Plan to invest about US$1,50,000 per FTE in PPPPlan to invest about US$1,50,000 per FTE in PPPterms in the near term or match the best of smallterms in the near term or match the best of small
April 2014April 2014 Thoughts on Indian STIThoughts on Indian STI
economies like Israel or Finlandeconomies like Israel or Finland Realize GERD/GDP ratio of 2% within 5 yearsRealize GERD/GDP ratio of 2% within 5 years
through a combination of both increases in FTEsthrough a combination of both increases in FTEsand GERD/FTE investmentand GERD/FTE investment
By leveraging R&D outputs in wealth creation,By leveraging R&D outputs in wealth creation,enable larger outlay for R&D to match the 2%enable larger outlay for R&D to match the 2%levels with wealth generated through R&Dlevels with wealth generated through R&D
8/12/2019 Thoughts on Indian STI Future
14/38
Requirements for realizingRequirements for realizing2% GDP Investments2% GDP Investments
At least Quadrupling the FTEs in R&D professionAt least Quadrupling the FTEs in R&D profession Sizing of GERD per FTE @ say US $ 150,000Sizing of GERD per FTE @ say US $ 150,000--
2,00,000 per year on PPP terms2,00,000 per year on PPP terms
April 2014April 2014 Thoughts on Indian STIThoughts on Indian STI
and into sizing of FTE baseand into sizing of FTE base Leveraging R&D outputs for wealth and valueLeveraging R&D outputs for wealth and value
creation through an enabling policy environmentcreation through an enabling policy environment
TechnologyTechnology--led creation of jobs, inputs to highled creation of jobs, inputs to hightechnologytechnology--led export and technology andled export and technology andinnovationinnovation--led wealth creationled wealth creation
8/12/2019 Thoughts on Indian STI Future
15/38
Challenge of GrowingChallenge of GrowingFTEsFTEs
Even at 18 to 20% annualEven at 18 to 20% annualgrowth of FTE enrollment, itgrowth of FTE enrollment, itwould take about 9would take about 9--1010years to reach ~0.7 millionyears to reach ~0.7 million 7
8
9
6%
8%
April 2014April 2014 Thoughts on Indian STIThoughts on Indian STI
s rom t e current eve ss rom t e current eve s
For a five year time spanFor a five year time spanother new mechanismsother new mechanismswould be necessarywould be necessary
Mere FTE growth withoutMere FTE growth withoutnational prosperity is notnational prosperity is notwelcomewelcome
0
1
2
3
4
5
yr 1 yr 2 yr 3 yr 4 yr5 yr6 yr 7 yr 8 yr 9 yr 10
12%
14%
16%
18%
20%
8/12/2019 Thoughts on Indian STI Future
16/38
Emerging Space for Science,Emerging Space for Science,
Technology and Innovation in theTechnology and Innovation in thenew global economynew global economy
Competitiondriven
Innovation Leadership in usable
knowledge
Knowled e
April 2014April 2014 Thoughts on Indian STIThoughts on Indian STI
Scholarshipdriven
ScienceTechnology
Market driven
Creation of jobs Creation of knowledge
Creation of value
Advancedknowledge
Gainful andusefulknowledge
Nationalprosperity
Seekers
8/12/2019 Thoughts on Indian STI Future
17/38
Profiling Indian STIProfiling Indian STIlandscape for Science spacelandscape for Science space
ScienceScience Basic research leading to SCI publications is growing inBasic research leading to SCI publications is growing in
volume space, but quality enhancement in discoveryvolume space, but quality enhancement in discoveryscience needs attention. Excellence rather thanscience needs attention. Excellence rather than
April 2014April 2014 Thoughts on Indian STIThoughts on Indian STI
. .
Share of Indian publications in top quadrant of journalsShare of Indian publications in top quadrant of journalsand citation impacts above global averages needand citation impacts above global averages needfocused actions.focused actions.
Some useful tips for improvements are emerging.Some useful tips for improvements are emerging.
International S&T collaboration is in order. Reaching 5International S&T collaboration is in order. Reaching 5ththor 6or 6thth position in volume share is realizable. Valueposition in volume share is realizable. Valueshare in scholarly publications needs to be increased.share in scholarly publications needs to be increased.Governments have limited rolesGovernments have limited roles
8/12/2019 Thoughts on Indian STI Future
18/38
Profiling of IndianProfiling of IndianTechnology SpaceTechnology Space
TechnologyTechnology Technology pipeline is not full and R&D system forTechnology pipeline is not full and R&D system fortechnology development for nontechnology development for non--strategic sectorstrategic sectorneeds considerable resizinneeds considerable resizin
April 2014April 2014 Thoughts on Indian STIThoughts on Indian STI
FTEs in Technology space sector needs both carefulFTEs in Technology space sector needs both carefulsizing and quality enhancementsizing and quality enhancement
Strategic BiStrategic Bi--national alliances in high technologynational alliances in high technologysector with smaller economies could be exploredsector with smaller economies could be explored
System approaches and large teams around domainSystem approaches and large teams around domainagencies with PPP seem necessary steps forward.agencies with PPP seem necessary steps forward.Governments should play rolesGovernments should play roles
8/12/2019 Thoughts on Indian STI Future
19/38
Positioning India inPositioning India inInnovation spaceInnovation space
Indian innovation system is fragmented and nonIndian innovation system is fragmented and non--structured.structured.
India could emerge as a new global power in affordableIndia could emerge as a new global power in affordableinnovation spaceinnovation space
April 2014April 2014 Thoughts on Indian STIThoughts on Indian STI
Challenges of designing models for innovation space inChallenges of designing models for innovation space inIndia are many fold, but could offer substantial rewardsIndia are many fold, but could offer substantial rewardsif designed well.if designed well.
Decentralized innovation structure could become IndiasDecentralized innovation structure could become Indias
USP with good planningUSP with good planning Governments should position an ecosystem for innovationGovernments should position an ecosystem for innovation
8/12/2019 Thoughts on Indian STI Future
20/38
Balancing Innovations forBalancing Innovations for
Competitiveness and inclusiveness :Competitiveness and inclusiveness :Challenge for the R&D systemsChallenge for the R&D systems
CompetitivenessCompetitiveness Differentiating mind setDifferentiating mind set
Market advantagesMarket advantages
Inventor focusedInventor focused
InclusivenessInclusiveness Integrating mind setIntegrating mind set
Availability to usersAvailability to users
Peo le focusedPeo le focused
April 2014April 2014 Thoughts on Indian STIThoughts on Indian STI
Return for InvestorsReturn for Investors Short life spansShort life spans
Value maximizationValue maximization
Speed is USPSpeed is USP
First mover advantageFirst mover advantage
Small economies excelSmall economies excel
Return to societyReturn to society Long gestation timeLong gestation time
Input optimizationInput optimization
Goodness is USPGoodness is USP
Last mile connectivityLast mile connectivity
Relevant to large populationRelevant to large population
8/12/2019 Thoughts on Indian STI Future
21/38
Lessons from the High/ HighLessons from the High/ Highquadrant for developing economiesquadrant for developing economies
Small EconomiesSmall Economies Israel; Finland; Sweden;Israel; Finland; Sweden;
Singapore; Taiwan;Singapore; Taiwan;Austria; Switzerland; SouthAustria; Switzerland; South
Large EconomiesLarge Economies USA; Germany; JapanUSA; Germany; Japan
France; Australia; CanadaFrance; Australia; Canada
High investments by theHigh investments by the
April 2014April 2014 Thoughts on Indian STIThoughts on Indian STI
High investments led byHigh investments led bythe private sector helps inthe private sector helps inglobal competitiveness inglobal competitiveness inmarket spacemarket space
Private sector into R&DPrivate sector into R&Dhelps in keeping thehelps in keeping theNational manufacturingNational manufacturingcompetitive against thecompetitive against thesmall economies in thesmall economies in thehigh volume markethigh volume market
Health care costs of some of the economies with large population baseare large even for the USA to bear. Public and social good value of R&Dthrough large public investments many not be necessarily bad
8/12/2019 Thoughts on Indian STI Future
22/38
Pros and cons of largely privatePros and cons of largely privatesector based R&D intensitysector based R&D intensity
ProsPros Private sector investments into R&D are generally inPrivate sector investments into R&D are generally in
areas closer to the market spaceareas closer to the market space
Knowledge to wealth creation links are strong andKnowledge to wealth creation links are strong and
April 2014April 2014 Thoughts on Indian STIThoughts on Indian STI
vi rantvi rant
Suits best a consumption oriented social orderSuits best a consumption oriented social order
ConsCons Inventor and investor centric priorities dominate andInventor and investor centric priorities dominate and
people centric needs for innovation management arepeople centric needs for innovation management arecompromisedcompromised
Does not suit economies with large income differentialsDoes not suit economies with large income differentialsand weak social welfare protectionsand weak social welfare protections
8/12/2019 Thoughts on Indian STI Future
23/38
Lessons from globallyLessons from globallycompetitive STI systemscompetitive STI systems Density of FTE/ millionDensity of FTE/ million
population above 2500population above 2500and high GERD/GDP @and high GERD/GDP @2%2%
Highly resource intensiveHighly resource intensivewith respect to bothwith respect to bothinvestments and FTEsinvestments and FTEs
Innovations at all stagesInnovations at all stages
April 2014April 2014 Thoughts on Indian STIThoughts on Indian STI
innovations for first moverinnovations for first moveradvantageadvantage
Driven mostly by privateDriven mostly by privatesector and market sharesector and market share
prioritiespriorities Maximizing profits isMaximizing profits is
crucialcrucial
chain are essential.chain are essential. Management systems forManagement systems for
risks and failures arerisks and failures arecrucial.crucial.
IPR systems focus onIPR systems focus onbenefits to investorsbenefits to investors
8/12/2019 Thoughts on Indian STI Future
24/38
Lessons for STI systems focused onLessons for STI systems focused onnational inclusivenessnational inclusiveness
Keep the innovationKeep the innovationsystem simplesystem simple
Focus on incrementalFocus on incrementalinnovation is a needinnovation is a need
Needs to operate the STINeeds to operate the STIsystem in resourcesystem in resourceconstrained spaceconstrained space
Decentralized innovationDecentralized innovation
April 2014April 2014 Thoughts on Indian STIThoughts on Indian STI
nves men may neenves men may nee
to focus on public andto focus on public andsocial good prioritiessocial good priorities
Keeping the price ofKeeping the price ofproducts on innovationproducts on innovation
affordable is a mustaffordable is a must Special design of riskSpecial design of risk
sharing is a mustsharing is a must
players doubling asplayers doubling asinnovators and users is ainnovators and users is aneeded alternativeneeded alternative
IPR system needs to beIPR system needs to be
people centricpeople centric Social empathy ofSocial empathy of
innovators is coinnovators is co--investmentinvestment
8/12/2019 Thoughts on Indian STI Future
25/38
Is there a new Strategy forIs there a new Strategy forcountries investing anew into R&D?countries investing anew into R&D?
Why models of the developed world may notWhy models of the developed world may notsuit the developing and newly emergingsuit the developing and newly emerging
countries?countries?
April 2014April 2014 Thoughts on Indian STIThoughts on Indian STI
Playing field not levelPlaying field not level FTEs can not be easily expanded fastFTEs can not be easily expanded fast
Competitive innovation model does not fitCompetitive innovation model does not fit
Consumption based innovation system is notConsumption based innovation system is notsustainable; climate change is productsustainable; climate change is product
High returns on investments into R&D essentialHigh returns on investments into R&D essential
8/12/2019 Thoughts on Indian STI Future
26/38
5 Key Steps for STI5 Key Steps for STIsystem of Indiasystem of India
1.1.
Balancing between excellence and relevanceBalancing between excellence and relevance2.2. Optimizing resource inputs and maximizingOptimizing resource inputs and maximizing
returns from researchreturns from research
April 2014April 2014 Thoughts on Indian STIThoughts on Indian STI
3.3.
Rig t prioritizing o returns or investors anRig t prioritizing o returns or investors aninventors against peopleinventors against people centric prioritiescentric priorities
4.4. Collaboration in a competitive environment withCollaboration in a competitive environment withright priority systemsright priority systems
5.5. Affordable and inclusiveness of innovations asAffordable and inclusiveness of innovations asagainst positioning strongly in the global marketagainst positioning strongly in the global market
8/12/2019 Thoughts on Indian STI Future
27/38
Challenge of Indian STIChallenge of Indian STIsystemsystem
April 2014April 2014 Thoughts on STIThoughts on STI
Is it feasible to match Duality of GlobalIs it feasible to match Duality of Global
competitiveness and National inclusivenesscompetitiveness and National inclusiveness
priorities in one STI system?priorities in one STI system?
8/12/2019 Thoughts on Indian STI Future
28/38
Designing Innovation system forDesigning Innovation system forinclusiveness and competitivenessinclusiveness and competitiveness
Inn
ovati
Creative
mindsetspace
Unconditioned mindUnconditioned mind--sets are sources ofsets are sources ofinnovationsinnovations Could we invest intoCould we invest into
rass root innovatorsrass root innovators
Quality link forgrass root
innovation
April 2014April 2014 Thoughts on Indian STIThoughts on Indian STI
Education levels
n
poten
tial
Conditioningof mind set
for meeting standardsfor meeting standardsglobal market?global market?
Creative mindsets inCreative mindsets informal innovationformal innovationspacespace
Collaboration with smallCollaboration with smalleconomies for Indianeconomies for Indianmarket for globalmarket for globalproducts!products!
with smallinnovativeeconomies
8/12/2019 Thoughts on Indian STI Future
29/38
Addressing the dualityAddressing the dualitychallenge of Indiachallenge of India
CompetitivenessCompetitiveness Focus on grass rootFocus on grass root
innovation and MSMEinnovation and MSME
InclusivenessInclusiveness Focus on formalFocus on formal
innovation system forinnovation system for
April 2014April 2014 Thoughts on Indian STIThoughts on Indian STI
Set up testing,Set up testing,
standardization andstandardization and
certification system andcertification system and
focus on marketfocus on marketinnovations for domesticinnovations for domestic
and global marketand global market
market leaders frommarket leaders fromsmall economies forsmall economies for
cost optimization forcost optimization for
domestic and overseasdomestic and overseasmarketsmarkets
8/12/2019 Thoughts on Indian STI Future
30/38
Leveraging grass root innovationLeveraging grass root innovationsystem for global competitivenesssystem for global competitiveness
Identify underIdentify under--served and low priced segments of theserved and low priced segments of the
global marketglobal market Connect MSME sector with economy of scope with theConnect MSME sector with economy of scope with the
grass root innovation systemgrass root innovation system
April 2014April 2014 Thoughts on Indian STIThoughts on Indian STI
rea e a a uerea e a a ue--a ac y w es ng, s an ar za ona ac y w es ng, s an ar za on
and certification for under served global market withand certification for under served global market withaffordability and quality as parameter linkaffordability and quality as parameter link
Focus on market innovations for grass root innovationsFocus on market innovations for grass root innovationssupported by product design and branding and MSMEsupported by product design and branding and MSME
productionproduction Move up the value chain from underMove up the value chain from under--served toserved to
competitive market space with formal systems to supportcompetitive market space with formal systems to supportin second stepin second step
8/12/2019 Thoughts on Indian STI Future
31/38
Strategic alliances with smallStrategic alliances with smalleconomies for inclusivenesseconomies for inclusiveness
Formal systems of innovations in terms of qualityFormal systems of innovations in terms of qualitymay match the best of innovators from smallmay match the best of innovators from smalleconomieseconomies
April 2014April 2014 Thoughts on Indian STIThoughts on Indian STI
formal innovation system is Indias USPformal innovation system is Indias USP Cooperate for cost optimization of leap frogCooperate for cost optimization of leap frog
innovations from small economies like Israel,innovations from small economies like Israel,
Finland and Switzerland market innovation ofFinland and Switzerland market innovation ofTaiwan for especially electronic and sensorTaiwan for especially electronic and sensorproductsproducts
8/12/2019 Thoughts on Indian STI Future
32/38
Some new PPP models forSome new PPP models forR&D in IndiaR&D in India
Small economies (Israel, Finland, Switzerland and Taiwan)Small economies (Israel, Finland, Switzerland and Taiwan)enjoy special places in niche market segment with smallenjoy special places in niche market segment with smallvolume and high Value.volume and high Value.
Cost optimization of their innovative products throughCost optimization of their innovative products through
April 2014April 2014 Thoughts on Indian STIThoughts on Indian STI
Indian USP in R&D could offer WinIndian USP in R&D could offer Win--Win formula for bothWin formula for both Especially with bludgeoning import segment of electronicEspecially with bludgeoning import segment of electronic
good and auto sectors in India, collaboration for costgood and auto sectors in India, collaboration for costreduction is of national priority.reduction is of national priority.
Special PPP model for biSpecial PPP model for bi--national product missions fornational product missions forlarge scale and corporate sector could be a newlarge scale and corporate sector could be a newpathway to be examined for its national valuepathway to be examined for its national value
8/12/2019 Thoughts on Indian STI Future
33/38
Nourishing Innovation through the MindNourishing Innovation through the Mind
to Market Chain in formal systemsto Market Chain in formal systems
R& s
try
Market
rdMoney
)
D
ENT
ITy
STI landscapeAcademics
Resea
rch
In
d
(SoftMoney)Financing(
H
Social capital
8/12/2019 Thoughts on Indian STI Future
34/38
PPP model for BiPPP model for Bi--national missionsnational missionsfor High technology sectorfor High technology sector
1.1. PPP model and biPPP model and bi--national missions for specificnational missions for specificproduct sector complete with risk coverageproduct sector complete with risk coverage
through a special legislation for CSIR, IITs andthrough a special legislation for CSIR, IITs and
April 2014April 2014 Thoughts on Indian STIThoughts on Indian STI
DRD type agencies to e exp oreDRD type agencies to e exp ore
2.2. Special funding schemes for PPP for R&D inSpecial funding schemes for PPP for R&D in
translation and showtranslation and show--how phases with cohow phases with co--
investment and equity models for risk coveringinvestment and equity models for risk coveringmay be necessarymay be necessary
8/12/2019 Thoughts on Indian STI Future
35/38
Grass root Innovation toGrass root Innovation toglobal marketglobal market1.1. Several Grass root innovators work at the base ofSeveral Grass root innovators work at the base of
economic pyramid of India and their innovations areeconomic pyramid of India and their innovations arerelevant to a large section of the underserved globalrelevant to a large section of the underserved globalmarketsmarkets
April 2014April 2014 Thoughts on Indian STIThoughts on Indian STI
..
grass root innovation systems remain unconnected ingrass root innovation systems remain unconnected inIndiaIndia
3.3. Connecting engineering colleges, grass root innovators,Connecting engineering colleges, grass root innovators,MSMEs, testing and quality assurance systems withMSMEs, testing and quality assurance systems with
brand marketing for low priced segments could offerbrand marketing for low priced segments could offerIndia unique position in underIndia unique position in under--served markets initiallyserved markets initiallyand then in main markets.and then in main markets.
8/12/2019 Thoughts on Indian STI Future
36/38
A plausible Approach for India inA plausible Approach for India in
linking STI to macro globallinking STI to macro globaleconomyeconomy
STI systemTechnicalInstitutions
R&D and eliteInstitutions
InformalInnovation
System
FormalInnovation
System
SmallEconomy
Innovationleaders
BinationalMissions
PPP model
NationalInnovationMissions
PPPs
IndianMSME
MarketAssistance
Un-served global markets National and global competitive markets
PPPs
8/12/2019 Thoughts on Indian STI Future
37/38
(PIE)(PIE)22 in Innovation Ecosystem:in Innovation Ecosystem: TTrust,rust,
RRisk,isk,AApplication,pplication,VVenture,enture, EEnterprise,nterprise,LLeadershipeadership
Institutions Entrepreneurship
Trust based models Enterprise Mindset
Policy People
Investment climateEcosystem
Riskmanagement
Applicationfocus
Venture capitalLeadership in Demand Management
8/12/2019 Thoughts on Indian STI Future
38/38
SummarySummary
Global positioning of Indian STI system would call forGlobal positioning of Indian STI system would call for
planned expansion of FTEs and investment per FTEs inplanned expansion of FTEs and investment per FTEs indifferent segments of the sectordifferent segments of the sector
India specific model would differ significantly from theIndia specific model would differ significantly from the
April 2014April 2014 Thoughts on Indian STIThoughts on Indian STI
high resource and high FTE density approacheshigh resource and high FTE density approaches
Some models have been suggested for addressing theSome models have been suggested for addressing theduality challenge of India with respect to globalduality challenge of India with respect to globalcompetitiveness and national inclusivenesscompetitiveness and national inclusiveness
Case is made for India embarking upon strategicCase is made for India embarking upon strategicalliances with smaller economies in Innovation spacealliances with smaller economies in Innovation space
New PPP approaches for R&D in India are essentialNew PPP approaches for R&D in India are essential