Despite NRF initiative, R&D has a long way to go in India

Brajesh Kumar Tiwari

Associate Professor, JNU

The Union Cabinet recently gave its approval for the National Research Foundation (NRF) Bill, 2023, to be introduced in Parliament shortly. A steering committee will be established to provide strategic guidance for the proposed NRF’s activities. It will consist of 15-25 distinguished researchers and professionals. Rs 50 billion will be made available over a period of five years, from 2023-24 to 2027-28, with the Government of India contributing Rs 14,000 billion and the industry, public sector enterprises, philanthropic donations, etc. contributing the rest.

This proposed foundation will facilitate research and development in India’s 1,074 universities and 161 research institutions, which include the Indian Institutes of Technology, National Institutes of Technology, AIIMS and the Indian Institutes of Science Education and Research.

We have not paid as much attention to research and development as other nations have. India’s R&D spending, which accounts for roughly 0.7 per cent of its GDP, is significantly lower than the global average of 1.8 per cent and much less than that of the developed nations such as the United States (2.9 per cent), China (2.2 per cent) and Israel (4.9 per cent).

According to a study conducted by the NITI Aayog and the Institute for Competitiveness, India’s research and development expenditure is among the lowest in the world. India has 366 R&D personnel per million population, compared to 1,366 in Brazil, 2,366 in China and 6,995 in Germany, according to a UNESCO report. Iceland (10,073) has the most R&D personnel per million inhabitants. The UNESCO Institute of Statistics reports that India has only 253 scientists or researchers per one million people, which is rather less than the numbers in the developed nations.

In India, the private sector contributes less than 40 per cent of the total R&D expenditure, compared to more than 70 per cent in developed nations. There are only 26 Indian companies among the top 2,500 R&D spending companies in the world. Comparatively, 301 Chinese firms are among the top 2,500 R&D spenders worldwide.

Similar to a ship that fails to chart new waters and runs aground, a nation that fails to invest in research and development will experience economic instability. Israel has demonstrated that it is possible for a small nation to achieve sustainable development by prioritising investment in research and development. The Israeli government has played a significant role in financing innovation, particularly in small and medium enterprises, and providing a well-functioning framework for innovation, including venture capital, incubators, strong science-industry links and high-quality university education.

Research and development are crucial because they improve our lives. India has been transitioning from a labour-based economy to a skill-based one. The Ministry of Skill Development and Entrepreneurship was created to accelerate this sector. Digital University and Gati Shakti University are expected to support the knowledge economy. Startups, educational institutions and small businesses will receive 80 per cent concession in patent application fees from the Indian government. Online patent filing is discounted by 10 per cent.

The WIPO Global Innovation Index 2022 ranks India 40th out of 132 nations. It has improved significantly from the 81st position in 2015. In the UNCTAD Technology and Innovation Report 2023, India is ranked 46th out of 158 countries.

For a nation’s economy to be truly robust, it must be powered by a system of knowledge that is both long-lasting and substantive. The greater the creation of intellectual property, the more jobs will be created on a large scale. Private companies in India primarily invest in sales and marketing and but not enough in R&D. This is one of the reasons why Indian brands are not innovative and why Indian manufacturers do not produce world-class goods. Now is the time to reconsider R&D for Make in India.

India possesses all the necessary elements to become a global innovation leader: a robust market potential, an exceptional talent pool and a thriving culture of thrifty innovation. Only proper direction to the raw talent is required. The Prime Minister’s Fellowship Scheme for Doctoral Research is a good start, but it should be expanded. The government should support and enable startups and businesses that think locally but have the potential to have a significant global impact. India is one of the world’s major providers of human resources who excel in their respective fields.

Without a technologically advanced, knowledge-based society, no nation can succeed in the 21st century. This requires significant investment in science and innovation. However, the curriculum in many universities is still primarily focused on memorisation and job preparation. According to the World Bank, 69 per cent of all jobs in India are threatened by automation.

The G20 presidency offers India the chance to set the global agenda. India, with a research intensity (RI) — R&D expenditure as a percentage of the GDP — of 0.65 per cent, is way behind South Korea (4.43 per cent), Japan (3.21 per cent), Germany (3.09 per cent), the United States (2.83 per cent), France (2.19 per cent), China (2.14 per cent) and the European Union (2 per cent).

Central and state governments should invest much more in education and research. Notwithstanding the establishment of the NRF, India has a long way to go. Today, India requires not only technological advancements and talent in diverse fields such as defence, agriculture and manufacturing, but also innovations that protect its land, water and air.

In order to make India’s ecosystem for science, technology and innovation globally competitive, policymakers must bring the science and technology sector, startups and universities on a single platform.

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