Note4Students
From UPSC perspective, the following things are important :
Prelims level: National Manufacturing Innovation Survey (NMIS)
Mains level: Read the attached story
Central Idea: The Department of Science and Technology under the Ministry of Science & Technology has released the National Manufacturing Innovation Survey (NMIS) 2021-22.
About National Manufacturing Innovation Survey
| Details | |
| Undertaken by | DST and United Nations Industrial Development Organization (UNIDO) |
| History | First National Innovation Survey in 2011 |
| Focus | Manufacturing competitiveness |
| Purpose | Innovation performance of Indian manufacturing firms |
| Insights | Enabling activities and identifying barriers to innovation |
| Processes | Examines innovation processes, outcomes, and barriers faced by firms |
| State/Sector | Evaluates performance of states and sectors in producing new products, services, and business processes |
| Key manufacturing sectors | 5 sectors: textiles; food & beverage; automotive; pharma; ICT. |
Components of the survey
(1) Firm-level survey
- It captured data related to types of innovations and innovative measures taken by firms.
- Includes: the process of innovation, access to finance, resources, and information for innovation, besides also recording the factors impacting the innovation activities in a firm.
- One in four firms have successfully implemented an innovation in the observation period.
- Over 80% of these firms benefitted significantly in expanding markets and production and reducing costs.
(2) Sectorial System of Innovation survey
- It mapped the manufacturing innovation system and its role in achieving innovations in firms.
- It measures the interactions between stakeholders of the innovation ecosystem, barriers to innovation, and the convergence or divergence of policy instruments in select 5 key manufacturing sectors important to the Indian economy.
Key highlights
- Karnataka is the most “innovative” State, followed by Dadra and Nagar Haveli, Daman and Diu (DNH&DD), Telangana, and Tamil Nadu.
- Telangana, Karnataka, and Tamil Nadu had the highest share of innovative firms at 46.18% ,39.10% and 31.90%, respectively.
- Odisha, Bihar, and Jharkhand reported the lowest share of such firms at 12.78%, 13.47% and 13.71%, respectively.
- Nearly three-fourths of the 8,000-odd firms surveyed, most of them micro, small, and medium enterprises (MSME), neither made any innovative product nor process innovation.
- However, nearly 80% of the firms that did report significant gains such as expanding markets and reducing production costs.
Barriers identified
- The most frequent “barriers to innovation” were the lack of internal funds, high innovation costs, and lack of financing from external sources.
- Gujarat and DNH&DD reported the highest frequencies of barriers to innovation, despite being among India’s most industrialised States.
Significance of the survey
- It will help in the Make-in-India programme, specifically the Production Linked Incentive (PLI) schemes.
- It will help to boost manufacturing in a variety of sectors, including electronics, pharmaceuticals, and automobiles.
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