1. National Innovation Programs: The Challenge from India Roundtable on Technology, Innovation, and American Primacy May 14, 2008 Adam Segal Council on Foreign Relations asegal@cfr.org

2. 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.”

3. Inputs and Outputs IndiaChina Researchers in R&D, 2003 117,528926,252 R&D researchers per million population, 2004 119708 Spending on R&D ($ billions), 2004 5.927.8 Spending on R&D (percentage of GDP), 2004 0.851.44 Scientific and technical journal articles, 2003 12,77429,186 R&D spending ($ thousands) per scientific and technical article 460953 Patents granted by US Patent Office, 2004 376597 R&D spending ($ millions) per patent granted 15.646.6

4. Source: NASSCOM

5. Distribution of R&D

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

8. Investment-11 th Five Year Plan (2007-2012) 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

9. 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

10. 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

11. 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.”