1. Make in India: The Innovation imperatives
Pradosh Nath Director Centre for Knowledge, Ideas and Development Studies (KnIDS) Delhi and Kolkata

2. Does the Make in India slogan resonate with S&T perspectives?
Key Issues
At 1-2 % growth, un-encouraging performance of the manufacturing sector
Generation of income and employment for billion population is a non-negotiable task for politics and economics of the country
Developed economies have evolved over the years as knowledge economies, where manufacturing sector has been gradually replaced by knowledge creating sector
India would be able to emulate developed economies once it achieves the status where population is human resources, and not an undesirable appendage of the economy
Till that time manufacturing has to be nurtured as the backbone of the economy
comes at most important and appropriate time

3. So what is required to realize the true potential of the slogan?
Strategic road map to push the Indian economy to a higher growth orbit
In a globalised world ‘Make in India’ has to have the strategy of ‘make locally’ and ‘sell globally’ - Local makes have to be saleable globally
Only local market cannot be the focus because other countries would have go global strategy and make easy inroad in the domestic market
Products serving our local market is already gasping, facing Chinese competition
Making local ensures income and employment generation, while global market ensures sustenance and growth, and also competitive capability building
Imperatives are competitive technological and innovation capabilities

4. However, international comparisons of innovation are not very encouraging…
Percentage of innovative firms in different countries
India figures at the bottom in introduction of new or improved products in the market
In innovation related activities India is far behind the developed countries in intra-mural R&D, but compares well with countries like Poland
Indian firms, compared to innovative firms in other countries, widely use external sources for information and knowledge
Percentage of innovative firms in product and process innovations
Source: These Graphs were constructed through data sourced from Eurostat, South Africa Innovation Survey Main Results 2008 and UNESCO Institute for Statistics (UIS) results of the 2011 Pilot Data Collection of Innovation
Statistics.

5. Why is it so?: Barrier to innovation
India’s position at the bottom in technological innovations is reasoned by
firms’ perceived barriers to innovations (National Innovation Survey – DST, 2013)
Internal resources remain strong barrier for all types of innovations
Innovation cost for ‘product’, ‘process’ and ‘alternative material’ is a barrier as expressed by more than 70% of the innovators.
Firms engaged in innovation on alternative material and efficient use of inputs are more prone to availability of lab facilities.
Availability of skilled manpower is the most important problem for 88% of the innovators.
Problem with access to market information and availability of information technology follow closely.
Infrastructure as barrier has been expressed by much less percentage of innovative firms
Access to knowledge/
Information has been found most important barrier by about 40% of the innovative firms.
This is followed by cost factor associated with innovation
This takes us to look at the innovation promotion system in India

6. Innovation infrastructure
Institutional arrangements for addressing needs for innovation support are done at:
National Level
(NIS)
Regional/State
Level (RIS)
Sectoral Level
(SIS)
Activated through national government and become one of the components of the National Innovation System
Activated by the state authority according to the states own planning for economic development and industrialization
Sectoral specificities of innovation creating Sectoral Innovation System

7. Innovation support system as part of NIS across country
Jurisdiction
Activity
National
State
District
Local
Firm level
Technology Generation
RDI (611), CMTI TDC (8)
TDC hand tools (1)
RDI (918), SIRO (490), Univ (282)
In-house R&D, MNCs’ R&D centres
Technology diffusion/ Marketing
NRDC, MSMEDO, IDEMI
MSMEDI, State Khadi Board
DIC
Technology Consultancy
CMTI, IDEMI
TCOs
Tools, equipment, prototype development
CMTI, IDEMI, CMTI
Central tool room (10), Dir of Inds.
Collaboration with Danish, German, Swiss
Common facilities/ testing centres
Testing centres (4); Field testing stations (7), CMTI
TDI (30) Workshops (42)
Raw material, Machine and equipment supply
NSIC, Khadi Board
State Khadi Board, MSMEDI
Finance, refinance
SIDBI, NABARD
State Fin Cor.
Lead bank
MFI
Infrastructure development
MSMEDO, RISC
State Dir of Inds. MSMEDI
Training and skill development
TI (2), CMTI
CAPART, IDEMI, NIMSME, Khadi Board
MSMEDI, ITI, Khadi Board
SHG, CSR, DRDA, BDO, Coop, NGO
Donor Agencies
Entrepreneurship development
EDI, IIT, TDI, NIT, NIESBUD, IIE
MSMEDI
SHG, CSR
Support system covers almost all areas that touch
innovation

8. Innovation support system as part of NIS across country
Jurisdiction
Activity
National
State
District
Local
Firm level
Technology Generation
RDI (611), CMTI TDC (8)
TDC hand tools (1)
RDI (918), SIRO (490), Univ (282)
In-house R&D, MNCs’ R&D centres
Technology diffusion/ Marketing
NRDC, MSMEDO, IDEMI
MSMEDI, State Khadi Board
DIC
Technology Consultancy
CMTI, IDEMI
TCOs
Tools, equipment, prototype development
CMTI, IDEMI, CMTI
Central tool room (10), Dir of Inds.
Collaboration with Danish, German, Swiss
Common facilities/ testing centres
Testing centres (4); Field testing stations (7), CMTI
TDI (30) Workshops (42)
Raw material, Machine and equipment supply
NSIC, Khadi Board
State Khadi Board, MSMEDI
Finance, refinance
SIDBI, NABARD
State Fin Cor.
Lead bank
MFI
Infrastructure development
MSMEDO, RISC
State Dir of Inds. MSMEDI
Training and skill development
TI (2), CMTI
CAPART, IDEMI, NIMSME, Khadi Board
MSMEDI, ITI, Khadi Board
SHG, CSR, DRDA, BDO, Coop, NGO
Donor Agencies
Entrepreneurship development
EDI, IIT, TDI, NIT, NIESBUD, IIE
MSMEDI
SHG, CSR
There are large number of organisations for technology generation, but comparatively few for dissemination

9. Innovation support system as part of NIS across country
Jurisdiction
Activity
National
State
District
Local
Firm level
Technology Generation
RDI (611), CMTI TDC (8)
TDC hand tools (1)
RDI (918), SIRO (490), Univ (282)
In-house R&D, MNCs’ R&D centres
Technology diffusion/ Marketing
NRDC, MSMEDO, IDEMI
MSMEDI, State Khadi Board
DIC
Technology Consultancy
CMTI, IDEMI
TCOs
Tools, equipment, prototype development
CMTI, IDEMI, CMTI
Central tool room (10), Dir of Inds.
Collaboration with Danish, German, Swiss
Common facilities/ testing centres
Testing centres (4); Field testing stations (7), CMTI
TDI (30) Workshops (42)
Raw material, Machine and equipment supply
NSIC, Khadi Board
State Khadi Board, MSMEDI
Finance, refinance
SIDBI, NABARD
State Fin Cor.
Lead bank
MFI
Infrastructure development
MSMEDO, RISC
State Dir of Inds. MSMEDI
Training and skill development
TI (2), CMTI
CAPART, IDEMI, NIMSME, Khadi Board
MSMEDI, ITI, Khadi Board
SHG, CSR, DRDA, BDO, Coop, NGO
Donor Agencies
Entrepreneurship development
EDI, IIT, TDI, NIT, NIESBUD, IIE
MSMEDI
SHG, CSR
As we move forward from the national to the local levels, organisations for support system become rarer

10. National Innovation Survey, DST 2013 shows……
Accessing institutional facilities (NIS) for technological support to innovation is generally very low
Accessing institutional sources of finance is very rare among the innovative firms. Similarly institutional training programme for human resource development is also rarely accessed
This is indicative of disconnect between innovation infrastructure & production system
Again from National Innovation Survey, DST 2013
RIS has high positive correlation with innovation potentiality of the states. States ranked lower in RIS also have poor innovation potentiality. Weak RIS leads to ineffective innovation eco-system.
For SIS it has been shown that states promoting sectors with high innovation potentiality can improve the overall the innovation eco-system of the states.

11. Road Map
‘Make in India’ has to provide the big push to the manufacturing sector
The strategy has to be make locally for global market
The imperative is strong innovation eco-system which appears to be the weak link for realising the ‘make in India’ dream
The weak innovation infrastructure is examined from NIS, RIS and SIS perspectives
NIS shows an overall a dichotomous innovation system reflected in the disconnect between the production system and innovation support system, as it is understandable from the observations of the National Innovation Survey
RIS shows that physical infrastructure (that includes education and health system along with road, electricity etc) is the key to promote innovative manufacturing activities
SIS, on the other hand indicates that promoting production activities of the sectors that have high innovation intensity help improve innovation eco-system
Steps towards strengthening innovation support system is, therefore, necessary conditions for successful ‘make in India’ movement

12. Thanks