Upload
hayley-reeves
View
39
Download
4
Tags:
Embed Size (px)
DESCRIPTION
India’s Innovation System. Sunil Mani and Parveen Arora. Outline. Performance of India’s Innovation System R&D Investments (PA) Patents (SM) Technology content of exports(SM) Growth of R&D outsourcing (SM) Technology import (SM) Components Overall policy framework (PA) - PowerPoint PPT Presentation
Citation preview
India’s Innovation System
Sunil Mani and Parveen Arora
Sunil Mani, BRICS, Aalborg2
Outline
Performance of India’s Innovation System R&D Investments (PA) Patents (SM) Technology content of exports(SM) Growth of R&D outsourcing (SM) Technology import (SM)
Components– Overall policy framework (PA)– Physical technological infrastructure (PA)– Financing of innovation (SM)– Supply of scientists and engineers(SM)– Intellectual property right protection (SC)
Sunil Mani, BRICS, Aalborg3
Relative performance of India wrt Patenting in the USA
Sunil Mani, BRICS, Aalborg4
Share of local patents in the total number of Indian patents in the USA
Sunil Mani, BRICS, Aalborg5
Technology-wide distribution of Indian Patents, 1995-1999
Technology Class
Technology
Cumulative Number of
Patents Granted, 1995-1999 Class 514 Drug, Bio-Affecting and Body
Treating Compositions 31
Class 435 Chemistry: Molecular Biology and Microbiology
26
Class 424 Drug: Bio-affecting and Body Treating Compositions
25
Class 549 Organic compounds-Part of the Class 532-570 Series
20
Class 540 Organic compounds-Part of the class 532-570 Series
14
Class 502 Catalyst, Solid Sorbent, or Support Therefor: Product or Process of Making
10
Class 568 Organic Compounds-Part of the Class 532-570 Series
8
Class 326 Electronic Digital Logic Circuitry
7
Class 528 Synthetic Resins or Natural Rubbers-Part of the Class 520 Series
7
Class 585 Chemistry of Hydrocarbon Compounds
7
Class 264 Plastic and Nonmetallic Article Shaping or Treating: Process
6
Class 510 Cleaning Composition for Solid Surfaces, Auxiliary Compositions Therefor, or Process of Preparing the Compositions
6
Class 536 Organic Compounds-Part of the Class 532-570 Series
5
Class 246 Organic Compounds-Part of the Class 532-570 Series
5
Class 623 Prosthesis, Parts thereof, or Aids and Accessories Therefor
5
Total for the above 15 Cumulative total of all technology classes
182
316
Sunil Mani, BRICS, Aalborg6
Technology-wide distribution of Indian Patents in the US, 2000-2004
Technology Class
Technology Total number of patents granted, 2000-2004
532 Organic Compounds (includes 532-570) 272 424 Drug, Bio-Affecting and Body Treating
Compositions 246
435 Chemistry: Molecular and Biology 89 520 Synthetic Resins or Natural Rubbers-
(includes classes 520-528) 45
327 Miscellaneous Active Electrical Nonlinear Devices, Circuits and Systems
28
502 Catalyst, Solid Sorbent, or Support Therefor: Product or Process of Making
28
423 Chemistry of Inorganic Compounds 25 707 DP: Database and File Management or Data
Structures (Data Processing) 24
426 Food or Edible Material: Processes, Compositions, and Compounds
15
702 DP: Measuring, Calibrating, or Testing (Data Processing
15
345 Computer Graphics Processing and Selective Visual Display Systems
14
510 Cleaning Composition for Solid Surfaces, Auxiliary Compositions Therefore, or Process of Preparing the Compositions
14
709 Multicomputer Data Transferring or Plural Processor Synchronization (Electrical Computers and Digital Processing Systems)
14
341 Coded Data Generation or Conversion 13 324
Electricity: Measuring and Testing 12
Total for the above 15
(2000-2004)
854
Total for all technology
classes (2000-2004)
1262
Sunil Mani, BRICS, Aalborg7
Technology-wide Distribution of Indian Patents in the USA: Differences between the two sub periods(Sub period 1: 1995-1999; Sub period 2: 2000-2004)
First of all the there has been a significant increase in patenting during the second period by almost 370 per cent;
Second, the share of the top 15 per cent has increased during the second period to nearly two-thirds from 57 per cent during the first period.
Third, Pharmaceutical patents account for a significant share in both the periods, although its share in the top 15 have decreased in the second sub period; and
Fourth, as a corollary of the above, the composition of the top 15 has undergone some changes in the second sub period. As against just one IT and electronic technology (including software) class during the first period, there are now 6 such technology classes in the second period. This shows the breadth of patenting by Indian inventors has increased.
Sunil Mani, BRICS, Aalborg8
Technology content of India’s Exports
Studies have shown that only about 7 to 8 per cent of India’s manufactured exports can be termed as high tech. Most of it is accounted by pharmaceutical products;
But the sustained growth of IT exports is changing the story.
IT exports have two variants. The first one is direct IT exports and the second one is indirect IT exports in the form of remittances of knowledge workers;
The direct IT exports now account for over 20 per cent of merchandise exports and over 13 per certcent of total exports.
Sunil Mani, BRICS, Aalborg9
Technology content of India’s Exports
Sunil Mani, BRICS, Aalborg10
Growth of R&D Outsourcing
Two variants R&D outsourcing per se and growing clinical
trials. No time series data as the phenomena is
very new- just two years old, but on definite growth path
Sunil Mani, BRICS, Aalborg11
Growth of R&D outsourcing
Evidence of high-end outsourcing is evident from the large number (over 150) established R&D outsourcing centres in India. In fact R&D outsourcing existed even before “outsourcing” became a fad.
The R&D story dates back to 1985-86 when Texas Instruments was the first to set up a center in Bangalore. GE and Intel soon followed suit, as did other global technology and telecom companies like Cisco, Microsoft and Motorola. The trend gained strength as not just large but medium, small and even startups set up research bases in India.
The R&D outsourcing market for IT in India is estimated to grow more than $8 billion by 2010 from $1.3 billion in 2005, at a CAGR of 30 per cent according to some industry estimates.
Outsourcing models for R&D vary, from captive to third party to contract assignments. The pioneers of R&D outsourcing were from information technology. R&D centres in the telecom
sector came next, and automobiles, pharmaceutical and biotechnology are the emerging areas where R&D outsourcing is bound to increase.
This growth of R&D outsourcing brings to our attention two important dimensions. First of all, it shows that if R&D as a profession is incentivised, it is possible for the country to
effect considerable increases in its R&D investments. The fact that foreign MNCs are able to establish contract R&D centres is a clear example of this possibility. Second contract R&D centres can be an important learning tool for the contract research organisations to emerge as important manufacturers in the future, provided that government is able to leverage this important opportunity through appropriate policy support. Such a policy support does not exist as of now.
Sunil Mani, BRICS, Aalborg12
Trends on technology imports to India during the post liberalization period(Number of collaboration agreements)
Sunil Mani, BRICS, Aalborg13
Payments made for technology import during the post liberalization period does not show any growth
0
50
100
150
200
250
300
350
400
450
500
In m
illi
on
s o
f U
S $
-60
-40
-20
0
20
40
60
80
100
Gro
wth
Rate
(%
)
Total Tech Payments 319 170 323 291 417 471 317 166 250 312 235 361 352 444
Growth Rate -46.71 90.00 -9.91 43.30 12.95 -32.70 -47.63 50.60 24.80 -24.68 53.62 -2.49 26.14
1990-91
1991-92
1992-93
1993-94
1994-95
1995-96
1996-97
1997-98
1998-99
1999-00
2000-01
2001-02
2002-03
2003-04
Sunil Mani, BRICS, Aalborg14
Components of Innovation Policy Overall policy framework
Year Policy Initiative 1958 Scientific Policy Resolution 1970 Indian Patents Act 1983 Technology Policy Statement* 1985 R&D Cess Act 1988 Venture Capital Guidelines Announced 1995 Technology Development Board Act 1996 CSIR 2001: Vision and Strategy Announced
Securities and Exchange Board of India (Venture Capital Funds) Regulations, 1996**
1999 The first amendment to the Indian Patents Act (IPA) 1970: to put in place a mechanism for accepting product patent applications covering pharmaceutical and agricultural chemicals from January 1, 1995 (better known as the mail-box provisions) and to provide exclusive marketing rights if certain conditions are fulfilled
2000 New Millennium Indian Technology Leadership Announced
2002 The second amendment to the IPA to bring it in conformity with all the relevant provisions included in the TRIPS Agreement, barring a solitary exception. This exception viz., introduction of product patents in the area of chemicals, pharmaceuticals, agricultural chemicals and food.
2003 New S&T Policy Announced 2005 The third amendment to the IPA extending
product patents to chemicals, pharmaceuticals, agricultural chemicals and food.
Notes: * A draft new technology policy was announced in 1993, but this was not adopted; ** Effectively replaced the guidelines of 1988
Sunil Mani, BRICS, Aalborg15
Salient features of the New Innovation Policy of 2003
Optimal utilisation of existing infrastructure and competence; Strengthening infrastructure for S&T in academic institutions; New funding mechanisms for basic research ; Human resource development; Technology Development, Transfer and Diffusion; Promotion of Innovation; Industry and Scientific R&D; and
Fiscal measures
Sunil Mani, BRICS, Aalborg16
Public sector allocation to S&T over the Indian five year plans
Sunil Mani, BRICS, Aalborg17
Composition of Indian R&D personnel(number)
1980 1998
Total R&D personnel (a +b+c)
184096
308392
a. Personnel engaged primarily in R&D 64875 95428
b. Auxiliary personnel 58142 100656 c. Administrative
61079
112308
Ratio of R&D (a) to Non-R&D (b + c)
0.53
0.45
Sunil Mani, BRICS, Aalborg18
R&D Personnel
Both in absolute number and in density terms the number of R&D personnel in the country is very small;
There is an explicit recognition of this fact in the new S&T policy of 2003.
In my view it is more of a demand side phenomena. More on this point in my presentation on human resources.
Sunil Mani, BRICS, Aalborg19
Financing of Innovation
The country has three broad schemes– Research grants– Tax incentives– Venture capital
Sunil Mani, BRICS, Aalborg20
Research Grants
TePP
Prototype Phase
HGT
Technology Proving Phase
Proving of commercial viability by demonstrating the
technology at pilot scale level
TDB and PATSER
Initial Market Launch of New
Technology
Sunil Mani, BRICS, Aalborg21
Research Grants
Large number of research grants administered by a plethora of organizations
Most grants are targeted at public sector research institutes and enterprises
The Matthew effect in grant disbursals owing to the principle of accumulative advantage
Sunil Mani, BRICS, Aalborg22
Tax Incentives
There are five different types of tax incentives; Considerable year to year changes in its scope; Has not very effective in raising R&D investments with
the notable exception of pharmaceutical industry.
Sunil Mani, BRICS, Aalborg23
Venture capital
Venture capital was introduced in 1988; The country has a very vibrant VC industry The investment pattern of the VC industry represented an
ideal model in phases I and II but no longer appears to be so.
Sunil Mani, BRICS, Aalborg24
Indian VC industry in historical perspective
Phase I - Formation of TDICI in the 80’s and regional funds as GVFL & APIDC in the early 90s.
Phase II - Entry of Foreign Venture Capital funds between 1995-1999
Phase III - (2000 onwards). Emergence of successful India-centric VC firms
Phase IV – US VCs’ increasing appetite to invest in India
Sunil Mani, BRICS, Aalborg25
Source: IVCA/AVCJ
20 80
250
500
1,160
937
774900
590
0
200
400
600
800
1,000
1,200
1,400
96 97 98 99 '00 '01 '02 '03 '04
India Venture Capital Investment Trends