R&D spend — golden intervention or smoke and mirrors

R&D

Syllabus
GS Paper 3 Achievements of Indians in science & technology; indigenization of technology and developing new technology;Awareness in the fields of IT, Space, Computers, robotics, nano-technology, bio-technology and issues relating to intellectual property rights.

Applications where to apply?
When asked about
Research and Innovation
Intellectual Property Rights
$ 7 trillion economy
Economic growth

Context
Union Finance Minister Nirmala Sitharaman announced in the interim Budget a corpus of rupees one lakh crore dedicated to providing interest-free loans for long-term financing or refinancing in research and innovation

Source
The Hindu | Editorial dated 9th  February 2024


The allocation of a significant corpus for research and innovation in India, particularly targeting private sector participation, has sparked debates and discussions regarding its effectiveness, distribution, and impact.

India has made significant progress in several areas of R&D, including:

  • Information technology: India is a global leader in the IT industry, with a large pool of skilled IT professionals and a thriving IT services sector.
  • Biotechnology: India is a major producer of generic drugs and vaccines, and is also making progress in areas such as stem cell research and genomics.
  • Pharmaceuticals: India is a leading manufacturer of generic drugs and vaccines, and is also developing new drugs for diseases such as tuberculosis and malaria.
  • Space exploration: India has launched several successful space missions, including the Chandrayaan-3 lunar mission and the Mangalyaan Mars orbiter mission.
  • Renewable energy: India is investing heavily in renewable energy sources such as solar and wind power, and is aiming to achieve a target of 450 GW of renewable energy capacity by 2030.

Recognizing the importance of R&D for growth and development, the Indian government has launched several initiatives to improve the country’s R&D landscape

  • Uchhatar Avishkar Yojana (UAY), which promotes industry sponsored, outcome-oriented research with an outlay of Rs.475.00 crore.
  • Start-Up India program: Launched in 2016, this program aims to foster a vibrant startup ecosystem through tax benefits, funding support, and incubation facilities.
  • Atal Innovation Mission (AIM): Launched in 2018, AIM aims to promote innovation in schools, universities, and industry by establishing Atal Tinkering Labs, fostering entrepreneurship, and supporting innovative ideas.
  • Prime Minister’s Research Fellows (PMRF) Scheme: Offers attractive fellowships to attract promising young researchers into frontier areas of science and technology
  • National Intellectual Property Rights (IPR) Policy 2016: Aims to balance the interests of innovators with public access to knowledge and technology.
  • National New Education Policy (NEP) 2020: Promotes research within higher education institutions and fosters innovation through multidisciplinary learning.

Despite the progress made, India still faces several challenges in R&D, such as:

Low Private Sector Contribution in R&D:

  • Private sector’s contribution to India’s R&D expenditure remains comparatively low, accounting for only 36.4% of the national gross expenditure on R&D (GERD).
  • Contrastingly, countries like Germany, South Korea, and the United States exhibit higher private sector contributions, reflecting a different innovation landscape.

Declining R&D Expenditure as a Fraction of GDP:

  • India’s R&D expenditure has been increasing in absolute terms but declining as a fraction of GDP, raising concerns about the country’s innovation competitiveness.
  • Technologically advanced countries allocate a higher percentage of GDP towards R&D, indicating the importance of robust innovation ecosystems

Inefficient research infrastructure:

  • The research infrastructure in India needs to be improved to support world-class research.

Skill gap:

  • While India has a large workforce, there’s a shortage of skilled researchers and engineers with industry-relevant expertise.
  • Quality of education: The standard of scientific education and research training needs improvement to produce globally competitive researchers

Limited industry-academia collaboration:

  • Bridging the gap between research institutions and industry is crucial for translating research into commercially viable products.

Addressing challenges requires a multi-pronged approach.

  • Diverse Models of Innovation: Innovation goals have expanded beyond economic growth to encompass environmental sustainability and social equity, necessitating diverse policy frameworks.
  • Role of Public Sector R&D: Increased public sector R&D expenditure, particularly at the state level, is essential for enhancing research facilities, addressing locally relevant issues, and facilitating the transition from research to implementation.
  • The allocation of a corpus of one lakh crore for innovation necessitates clear objectives, domain-wise allocations, targets, and transparent selection criteria.
  • Improve human capital: Enhancing science education, providing industry-focused training, and attracting global talent.
  • Modernize infrastructure: Upgrading laboratories, investing in advanced equipment, and ensuring wider access to research facilities.
  • Strengthen collaboration: Building stronger linkages between academia and industry, encouraging joint research projects, and promoting technology transfer.

The allocation of a significant corpus for research and innovation underscores the government’s commitment to fostering technological advancement and economic growth. However, addressing the complexities and challenges associated with private sector involvement, resource allocation, and outcome measurement is crucial for realizing the full potential of this initiative.


RELATED TOPICS

The National Intellectual Property Rights (IPR) Policy 2016 is a comprehensive framework outlining India’s vision and approach towards IPRs.

Objectives:

  • Promote innovation and creativity in all sectors.
  • Balance the interests of innovators with public access to knowledge and technology.
  • Foster a vibrant and globally competitive IPR ecosystem.
  • Align India’s IPR regime with international standards and obligations.

Policy Highlights:

  • Emphasis on awareness and education: Creating public awareness about the importance of IPRs and fostering a culture of respect for intellectual property.
  • Strengthening institutional framework: Modernizing and streamlining the functioning of IPR offices like the Patent Office and Copyright Office.
  • Facilitation of IPR applications: Making the application process for patents, trademarks, copyrights, etc., more user-friendly and efficient.
  • Enforcement and adjudication: Strengthening mechanisms for enforcing IPR rights and resolving disputes effectively.
  • Promoting research and development: Facilitating access to knowledge and technology through measures like compulsory licensing and research exceptions.
  • Traditional knowledge and folk heritage: Protecting and promoting India’s unique traditional knowledge and cultural heritage.

PIB

AIM

PMRF   

IPR


Discuss the significance of the corpus allocation for research and innovation announced in the interim Budget and its implications for India’s innovation ecosystem. [150 words]

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