“Innovation is the engine of growth. Research and innovation are the foundation of a knowledge-based economy. For India to emerge as a leader, it is essential to have strong R&D infrastructure and foster a culture of innovation.”
– Sh. Narendra Modi, Prime Minister of India
Introduction
Research and Development (R&D) is the backbone of innovation, the driver of economic progress, and the key to technological dominance. For India to rise as a global powerhouse, cultivating a dynamic and forward-looking R&D ecosystem is non-negotiable. Despite a wealth of talent and growing investments, India’s R&D contributions remain modest compared to advanced economies. Bridging this gap requires bold, strategic action—a synergy of transformative policy reforms, active private sector participation, and cutting-edge infrastructure development. Achieving India’s ambition of becoming a $5 trillion economy and a self-reliant nation hinges on this commitment to R&D. Currently, with R&D spending at just 0.64% of GDP—far behind global leaders like China and the U.S.—underinvestment threatens to stifle innovation and impede economic growth. It’s time for India to prioritize R&D as the catalyst for her global ascent.
Self-reliance, or ‘Atmanirbharta’ necessitates indigenous technological capabilities. A strong R&D framework reduces dependence on foreign technologies, ensuring national security and economic stability. The private sector’s role is crucial, yet its contribution to India’s Gross Expenditure on R&D is limited. Encouraging private investment through incentives and public-private partnerships can boost this several fold.
The Funding Challenge
A significant barrier to R&D in India is inadequate funding. The country’s R&D expenditure has remained stagnant at around 0.65% of its GDP, far below countries like the USA, Germany, Israel and South Korea. To facilitate R&D, a focused effort is required to include:-
- Greater Public Investment: The government must allocate a higher percentage of GDP to research, focusing on strategic sectors such as healthcare, energy, and defence.
- Encourage Private Sector Participation: Incentivizing private companies through tax benefits and grants can boost their R&D contributions. Public-Private Partnerships should be expanded to pool resources and expertise.
- Promote Venture Capital: Providing venture capital support for startups and innovators will encourage risk-taking and entrepreneurial R&D efforts.
A Warm Handshake Between Academic and Research Institutions
Higher education system plays a critical role in fostering R&D. However, many of our institutions lack the resources and infrastructure required to compete globally. A targeted and concentrated approach is essential to include:
- Building World-Class Facilities: Establishing state-of-the-art laboratories and research centers equipped with advanced technology.
- Interdisciplinary Research: Encouraging collaborations across disciplines to tackle complex global challenges.
- Focus on Quality over Quantity: Revising curricula to emphasize critical thinking, problem-solving, and innovation rather than rote learning.
Industry – Academia Bonhomie is Critical
Bridging the gap between academic research and industrial application is essential to ensure innovations reach the market. Some measures include:-
- Creating Innovation Hubs: Establish dedicated zones where universities and industries can collaborate on projects.
- Skill Development Programs: Joint initiatives to upskill students and researchers, aligning academic output with industry needs.
- Commercialization of Research: Simplifying processes to patent and market academic research outcomes.
Regulatory Frameworks Need Simplification
Complex regulatory processes often hinder research in India. Streamlining these frameworks is crucial for a conducive R&D environment.
- Single-Window Clearance: Introducing a unified platform for approvals and funding processes.
- Intellectual Property Rights (IPR): Strengthening the IPR regime to protect innovators and attract foreign investments. Addressing gaps in existing laws for emerging technologies like AI, biotechnology, and software innovations.
- Ethical Standards: Ensure clear, fair guidelines for research involving sensitive areas like biotechnology and artificial intelligence.
Avoid Missing the Innovation Bus
A thriving R&D ecosystem requires a societal shift towards valuing curiosity and creativity. We need to ramp up beyond the traditional jugaad culture.
- Early Education Initiatives: Introduction of STEM (Science, Technology, Engineering, Mathematics) programs in schools will nurture innovation from a young age.
- Recognize and Reward Talent: National awards, fellowships, and grants for outstanding researchers can help motivate young minds.
- Inclusive Participation: Encouragement to women, minorities, and marginalized groups to participate in R&D through targeted scholarships and programs.
Leveraging Emerging Technologies
Investment in cutting-edge technologies is critical to maintaining global competitiveness.
- Artificial Intelligence (AI) and Machine Learning: Boost AI research and its application in sectors like healthcare, agriculture, and logistics.
- Green Technologies: Greater focus on sustainable technologies to address environmental challenges.
- Space and Defense R&D: Strengthening of capabilities in strategic areas through partnerships with organizations like ISRO and DRDO.
Global Models – Need to Learn
India can draw inspiration from countries excelling in R&D. For instance:
- South Korea: Strong government-industry collaboration and significant R&D investments.
- Israel: Support for startups and innovation through government-backed incubators.
- Germany: Emphasis on vocational training and industrial research.
South Korean Model
South Korea is recognized as one of the world’s most innovative economies, largely due to its robust ecosystem for R&D. The country’s emphasis on R&D is evident in its high expenditure, strategic government policies, and industry-academia collaboration.
South Korea allocates approximately 4.5% of its GDP to R&D, one of the highest in the world. This financial commitment enables the development of cutting-edge technologies and innovation. Government agencies like the Ministry of Science and ICT provide grants and support for basic and applied research. South Korean conglomerates, such as Samsung, LG, and Hyundai, are major contributors, accounting for a significant portion of national R&D expenditure. Government initiatives like the “Basic Plan for Science and Technology” outline long-term goals and allocate resources for priority sectors. Companies engaged in R&D receive tax breaks, deductions, and financial support, encouraging investment in innovation.
South Korea fosters a “Triple Helix” model, integrating the efforts of academia, industry, and government. Universities and research institutions collaborate with industries to commercialize innovations. Companies often sponsor university research programs and provide internships to students. South Korea emphasizes education and skill development to ensure a steady pipeline of researchers and innovators.
The Israeli Way
In comparison Israel, often referred to as the “Startup Nation,” has emerged as a global leader in R&D, despite its small size and limited natural resources. With one of the highest R&D expenditures as a percentage of GDP (approximately 5.4%), Israel has built an innovation-driven economy. Its success is rooted in strategic policies, a robust ecosystem, and a culture of innovation.
The Israeli government plays a pivotal role in nurturing R&D through funding, policy support, and infrastructure. Veterans transition into the startup world, repurposing defense technologies for civilian breakthroughs in communication, healthcare, and agriculture. A robust startup ecosystem, supported by government-backed incubators, tax incentives, and funding, fuels this innovation. High R&D spending, along with the presence of global tech giants like Intel and Google, anchors Israel’s position as a hub for advanced research. A culture of resilience, risk-taking, and strong networks among entrepreneurs and investors reinforces its status as a global innovation leader.
“A nation that does not invest in its own R&D is doomed to depend on others for its critical needs. Indigenous innovation is not just about economic growth but also about national security and self-reliance.
Dan Shechtman, Israeli scientist and Nobel laureate in Chemistry
Conclusion
The Prime Minister in his address to the Nation from the ramparts of the Red Fort on 15th August, 2022, had pointed out the importance of Research and Development in our country in the Amrit Kaal giving the clarion call of “Jai Anusandhan” on the occasion. The establishment of Anusandhan National Research Foundation by the Government of India was a step in this direction.
Facilitating R&D in India is not just a necessity but a pathway to achieving self-reliance, global competitiveness, and sustainable development. India’s R&D future hinges on bold reforms: scale public funding, incentivize private innovation, and fuel startups with venture capital. Forge public-private synergies, prioritize strategic sectors, and attract global tech giants. Cultivate risk-taking, streamline regulations, and build cutting-edge infrastructure. Innovation thrives when ambition meets action — India must lead, not follow.
The vision of a self-reliant and technologically advanced nation relies on India’s ability to empower its researchers and innovators. With the right policies and collective effort, India can transform into a global hub of research and innovation, driving progress and propelling the nation towards its goal of VIKSIT BHARAT @ 2047.
ABOUT THE AUTHOR
Lt Gen Tarun Chawla, was commissioned into the Regiment of Artillery in Jun 1984. He has served with the United Nations Mission in Liberia and has been an instructor at the College of Defence Management at Secunderabad. The officer has commanded an Artillery Brigade in the LC Sector in J&K, and an Artillery Division as part of Army’s Western Command. He was the Director General Financial Planning, prior to assuming the role of Director General of Artillery.
