Innovation Ecosystem in India

Hints of the corporatization of science research in India 

Note4Students

From UPSC perspective, the following things are important :

Mains level: Role of Private sector in RandD;

Why in the News?

The establishment of the Anusandhan National Research Foundation and its funding structure clearly signals the government’s intended direction.

Research Policy in India

  • Shift Towards Corporatisation: The Indian government’s approach encourages research institutions to generate revenue through external sources, moving away from reliance on public funding.
    • This trend aligns with the 2015 Dehradun Declaration, which advocated for marketing patents to self-finance research initiatives.
  • Focus on Market-Driven Research: The ANRF aims to align research outcomes with market needs, promoting the idea that scientific advancements should have immediate applications.
    • This is evident in the emphasis on prototype development, which assesses the marketability of research products, which was highlighted in the 2024 Budget speech.
  • Integration of Industry and Academia: The ANRF is designed to forge collaborations between research institutions and the private sector by earmarking a substantial portion of its funding (approximately 72%) from private sources, bridging the gap between scientific research and commercial application.
Note: The Anusandhan National Research Foundation (ANRF) is a significant initiative in India’s research landscape, established under the Anusandhan National Research Foundation Act, 2023.

Funding Mechanism of ANRF

  • Budget Allocation: The ANRF will be allocated ₹50,000 crore over five years, with a significant portion expected to come from non-government sources, including industry and philanthropic contributions.
  • Governance Structure: The ANRF will be governed by a board that includes industry representatives and experts, ensuring that funding decisions align with market demands and technological advancements.

What are the signals despite the stated objective of ANRF? (challenges)

  • Potential Undermining of Curiosity-Driven Research:  The private sector does not want to fund basic research because it has no immediate commercial applications which ultimately leads to a decline in foundational scientific exploration.
  • Public Funding Concerns: The government’s expectation for private sector funding raises questions about the sustainability of public investment in research.
    • The current ratio of public funding for science research in India (0.6% to 0.7% of GDP) is significantly lower than that of countries like South Korea (around 4.8%  of GDP).

India’s Achievements Despite a Low GDP Investment in R&D: 

  • High Production of PhDs:  Annually, India generates approximately 40,813 PhDs, ranking third globally after the United States and China. 
  • Robust Research Output: India’s research output remains substantial, with over 300,000 publications in 2022, making it the third-largest producer of scientific publications globally.
  • Growth in Patent Grants: India has shown remarkable progress in intellectual property creation, securing 30,490 patents in 2022, placing it sixth globally.  
  • Improvement in Global Rankings: India has made significant strides in global innovation rankings and research quality. It improved its position on the Global Innovation Index (GII) from 81st place in 2015 to 40th in 2023.  
      • India climbed to the 9th rank in the Nature Index 2023, surpassing countries like Australia and Switzerland.
  • Investment in Autonomous R&D Institutions: A considerable portion of India’s R&D funding is directed towards autonomous research laboratories. The total investment in R&D reached approximately $17.2 billion in 2020-21, with a significant allocation to key scientific agencies such as the Defence Research and Development Organisation (DRDO) and the Indian Council of Agricultural Research (ICAR).

Comparison with Other Countries

As of 2023, India’s gross expenditure on R&D stands at approximately 0.64% of its GDP.

  • United States: The U.S. invests about 3.46% of its GDP in R&D
  • South Korea: South Korea leads with an impressive 4.8% of GDP allocated to R&D.
  • Germany: Germany’s R&D spending is around 3.1% of GDP.
  • China: China’s investment in R&D is approximately 2.4% of GDP.
  • Taiwan: Taiwan also invests around 3.77% of its GDP in R&D.

Way Forward: 

  • Strengthening Public Funding for Basic Research: To ensure a balanced research ecosystem, the government should increase public investment in foundational scientific research.
  • Enhancing Industry-Academia Collaboration: The government should facilitate stronger partnerships between research institutions and the private sector while maintaining a focus on both applied and basic research.

Mains PYQ: 

Q What are the research and developmental achievements in applied biotechnology? How will these achievements help to uplift the poorer sections of the society? (2021)

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