National Innovation Programs: The Challenge from India Roundtable on Technology, Innovation, and American Primacy May 14, 2008 Adam Segal Council on Foreign Relations

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 IndiaChina Researchers in R&D, ,528926,252 R&D researchers per million population, Spending on R&D ($ billions), Spending on R&D (percentage of GDP), Scientific and technical journal articles, ,77429,186 R&D spending ($ thousands) per scientific and technical article Patents granted by US Patent Office, R&D spending ($ millions) per patent granted

Source: NASSCOM

Distribution of R&D

Source: Unleashing India’s Innovation, World Bank, 2007

Investment-11 th Five Year Plan ( ) Overall increase of 400% for science and technology from 10 th to 11 th 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 11 th 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.”