A major problem is whatever research we have is basic research rather than in the Applied field
By PRADOSH C. MOHANTY
Editorial Advisor
In the recently published Global Innovation Index (GII), India is ranked 52 among 126 countries, five notches above its last year’s position. The United States is ranked three, UK five, and China 14, ahead of Japan at 15.
India shows strength in the number of graduate students, export of ICT services and scientific publications, among other things, though. It has a lead over Philippines, Kuwait, South Africa and Brazil. In past five years, India has jumped 29 places and remains at second position among middle-income economies in terms of quality of innovation.
However, as in most cases, India presents a paradoxical picture – with excellence and mediocrity assimilated as two sides of the same coin. Expenditure in Research and Development (R&D), the single most important factor for meaningful and competitive innovation, has tripled over the past 10 years – but it had stagnated at around 0.7% of the GDP during the previous two decades.
Let alone Western countries, even South Korea and Israel spend over 4% of their GDP in R&D. India’s expenditure in this field is primarily through the Central Public Sector Enterprises in such sectors as atomic energy or space research, among a few others. Therefore, it is no wonder that this country is a heavyweight in terms of indigenous firepower. Besides, there is almost zero interference in the functioning of the scientists. But the private sector, contributing at a mere 0.35% of the GDP, and the states are lagging behind considerably. India tops the list of 13 countries (including the US, Britain, China and Japan) in terms of the share of the public sector in R&D spending – courtesy ISRO, BARC, IISc, TIFR, among others. Therefore, the Economic Advisory Council’s call to Prime Minister Modi to increase R&D spending to 2% of the GDP by 2022 appears to be rather ambitious.
India is spending over US$80 billion annually, but its per capita expenditure (purchasing power parity) is only US$40 in comparison to those of US and China at US$1,580 and US$320, respectively. It produced over 100,000 scientific articles last year, more than Germany and Britain. Yet, among the top 2,500 companies to invest in R&D globally, India has only 26 units in comparison to China’s 300. Amazon alone spends US$20 billion. India files the seventh largest number of patents in the world, but most of them are by MNCs.
R&D is at the core of economic activity. It allows scientists, technologists and researchers to develop new methods and knowledge points to enhance the quantity and quality of output with the same resources. A classic case is shale oil extraction in the US or the use of “fines” by China to produce steel. Using R&D, many Asian countries have risen dramatically. China’s heightened position in the world is the most visible manifestation of that. Made in China is a cliched but factual slogan. From the tiniest Ganesh statuette to large furniture, from mobile phones to power plants, China has swamped the Indian market so much so that our trade deficit is about US$60 billion. Just look at the way Huawei sent tremors in the 5G market.
Our universities collectively spend about US$2 billion, yet John Hopkins University spends US$2.5 billion alone. There are 12 American universities to spend more than one billion each. Our higher education is in a shambles. Most universities have not changed their curriculum. Our physics and chemistry laboratories have not gone beyond slide calipers and bunsen burners. Yet our burgeoning middle class, demanding more comforts and luxuries, and our distressed citizens in rural India and slums of modern metros should spur the scientists to innovate.
A major problem is whatever research we have is basic research rather than in the Applied field. This negates any synergy between educational institutions and industries. If the government is the primary spender and is also the primary user, then no advantage to daily life can accrue.
For its part, therefore, the government should build an enabling atmosphere with suitable incentives, regulating policy aided by a vibrant IPR regime. It should realize the importance of R&D for its “Make in India” vision and provide a platform where private sector and state governments can meaningfully participate for mutual and national benefit.
The writer belongs to IRS ( Retd ), and is a former Chief Commissioner of Income Tax. Contact: [email protected]
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