Business Standard
Monday, Nov 23, 2009
 
drived banner
drived banner
  Advanced Search
Feedback | RSS
Content Guide
Follow us on  
  Home  ||||||||| 
 BS Headlines | News Now | BS Weekend | The strategist | The Smart Investor | Lunch with BS | Columnists | BS 1000
  Hindi | E-Paper | Motoring  | Live Markets |  Smart Portfolios II  | Blogs | Portfolios >
  Search:

Ashok Parthasarathi: Who says we have not innovated?
There continue to be many ill-informed misconceptions about India's innovational capacity
Ashok Parthasarathi / New Delhi March 18, 2009, 0:04 IST

There continue to be many ill-informed misconceptions about India's innovational capacity.

 
 
News Now
Paper
Specials
- Sensex makes remarkable recovery, regains 17K
- Range-trading may continue this week
- US sleuths believe ISI had links with Headley
- India not worried about US honouring n-deal: PM
- Vendata expects quick nod for Orissa project
More  

Some writers and “studies” seek to create the impression that India scores poorly on innovation. The term “innovation” is erroneously used in this country to mean only technological innovation, when there are many forms of innovation — organisational, managerial, financial, and others.

There are cases like the Nano of Tata Motors and the Xylo of Mahindras, both examples of superb multi-dimensional innovation and preceded by a string of earlier innovations—Indica, Indigo, 407 LCV, ACE and HCVs of Tata Motors, including turbo-charged ones for the army, and the Scorpio of Mahindras and the tractors of Punjab Tractors (now bought by Mahindras). Moreover, Mahindras are to launch a hybrid car in 2010-11 and an electric vehicle in 2011-12.

There are numerous other examples in pharmaceuticals, agro-chemicals, and fine and heavy chemicals. In electronics too, there are several examples: the 45 million lines of digital electronic exchanges based on C-Dot technologies worth more than Rs 40,000 crore, the computerised Railway Passenger Reservation System (RPRS) and the monstrous Railway Computerised Freight Operations Information System (RFOIS), done jointly by the railways and CMC. These have resulted in huge productivity improvements in the world’s largest railways. In comparison with RPRS and RFOIS, the real innovation in the IT and ITES industry is trifling. After 20 years of existence, our IT “industry” does not have a single product to show for itself. It has grown in revenues and white-collar labour force almost solely on the basis of wage differentials — not on the basis of productivity increases.

When comparing with other countries, our buying Embraer VIP jets from Brazil should be juxtaposed with Brazil buying from us Cipla’s unique anti-AIDS pharma “cocktail”, a range of Bt-based diagnostic kits, digital electronic telecom switches and solar photo-voltaic energy sources. If we are talking of “technological innovation”, I would put India ahead of both China and Brazil. For an India-China comparison, please see a recent study by the US consulting firm, Zinnov, and Vishnu Saraf’s 2008 book India & China: Comparing the Incomparable.

There have been, and continue to be, many ill-informed misconceptions in this area. There is the argument that India has been innovative through the reverse engineering route. But we have followed the primary innovation route as well, as C-DAC, Wireless in Local Loop (WLL) of Jhunjhunwala’s IIT-Chennai group, Titan of ONGC and others bear out.

To be sure, we do not have the venture capital firms of the US, and consequently few start-ups. The US also has its MITs and Stanfords for accelerating and diffusing technological innovation. But globally only two countries have been able to do both — the US and Israel. Even here, it is really only the US, because most spawners in Israeli academic institutions are Jews of US origin. Other OECD countries, academia, industry and governments have tried every trick in the book in terms of policies, practices, institutional structures and financial and fiscal incentives to match the US, but all have failed. There is one Cambridge Science Park (CSP) in the UK, one Cadarache in France and a couple of small Fraunhofer (Institute) Science Parks around Munich and Stuttgart. But none of them (except perhaps for CSP) have shown the dynamism and continuous spawning capacity of MIT or Stanford. Why? Numerous studies have led to the conclusion that “there is something cultural in the phenomenon” (see Anotolia Saksenian’s study of Silicon Valley, 2002).

Many of our clusters of small hi-tech companies in Bangalore and Hyderabad have come up with core/supportive higher educational institutions but also been spawned off government R&D labs. IISc in Bangalore, the National Aerospace Lab (two flourishing spawns, NALTEC and NALAR), many major labs of ISRO and DRDO, Osmania University, the Indian Institute of Chemical Technology (four spin-offs), the Centre of Cellular and Molecular Biology, DLRL (six spin-offs feeding our defence and space programmes), Bharat Dynamics Limited (our missile manufacturing company) and the space division of BEL have been the spawning nuclei. We must shake off the copycat syndrome that sees the US alone as the role model. What is our basic objective? To spawn start-ups. Whether the core “spawner” is an academic institution, R&D lab or industrial company will depend on the history and culture of innovation of the country.

Finally, the key ingredient for generating innovation is the government. It should and does fund institutions (of all types) that have a strong R&D agenda and capacity, provide seed capital for start-ups, provide the infrastructure, and be the driver for the formation and sustenance of clusters of hi-tech companies. However, our techno-commercial conditions are very different from those of the US. So we need additional roles for government in achieving innovation, as we demonstrated 40 years ago with the Green Revolution and more recently the White (Milk) Revolution, eg financing lone/small groups of entrepreneurs to innovate, not just up to ‘proof of concept’ but right down the innovation ‘chain’ to the market. We have a host of institutions and schemes in various arms of the ministry of S&T which do just that — Technology Entrepreneurship Programme (TEP), Technology Incubator Programme, Science & Engineering Research Council, Programme Aimed at Technological Self-Reliance, Technology Development Board, New Millennium Science, Technology and Industry Initiative and National Innovation Foundation. At last count, there were around 125 start-up and spin-off companies from the IITs, government labs and companies in healthy operation in Bangalore, Chennai, Hyderabad and Pune. All these diverse government programmes have been designed after detailed study of different countries.

Then, there is the focused funding of pharma, nano-technology, bio-technology (around Rs 200 crore/year each) and NRDC as the nodal commercialiser of some 2,000 technologies from over 200 S&T agencies, labs, IITs and universities, many of which have led to not just product exports but technology exports as well. Moreover, NRDC has been making sustained profits for the last 20 years.

The total annual R&D funding of academic institutions, government labs and industry through the above programmes is around Rs 1,500 crore, and the output has been excellent at around Rs 15,000 crore, with an annual growth rate of around 30 per cent and many international patents. But we have to do much more, principally, grow the scale and scope of these mechanisms and the levels of government funding.

The author is Former Science Adviser to late Prime Minister Indira Gandhi and former Secretary of various scientific departments of the Government of India

Arrow Other Stories     
- Sensex makes remarkable recovery, regains 17K
- L N Mittal doubles his stake in Ophir Energy
- Indian handicraft firms to participate in Munich fair
- Microsoft eyes Indian smartphone mkt
- RIL Hazira unit bags 'Excellent Energy Efficient Unit Award'
More  
  Read Business news in 
  Get financial advisory and solutions for your projects
  Holidays starting at a delightful EMI of Rs 3481
  Switch on and say hello to Monday morning !
  Your dream home can now be a reality.
  Visit Fortis for a preventive health check-up & get a 20% discount.
  Follow the ups and downs of your investments. Try our new Portfolio Tracker
  Kolkata Dock \ Freight contract for the British Gurkhas Nepal
  Find how Midsize Businesses use ERP to gain competitive advantage
  Trading in Forex is now as easy as 1-2-3
  Discover an economical and cost effective way to market your products and services
  Giftwithlove.com: Same day delivery of Flowers and Cakes to India
  Download the E-book on the Future of Business Intelligence
  Learn Best Practices for improving customer satisfaction
  Know your customers better... download the free e-book on CRM
   Discussion Board / User Comments    
Display Name  Email-Id  
Post your comment
Yogi
All of India's accomplishments are dwarfed by the filth of her cities, mountains of garbage, stench of human waste, open urination and defecation, and yes, chaos. What about that, Sir?
Reply
M.A.Pai
The writer has articulated well some of the innovations in India. Konkan railway is also an example where real time info is available.I am glad he mentioned the GMT revolutions ( Green, Milk and Telecom) which many taken for granted !The comment about the IT and ITES industry is very relevant and timely. The two crucial sectors are Power and Education. In the former it is high tech in terms of planning and real time operation S/W using commercial and developing new ones.With a large body of of power engineers, self reliance is a worthy goal to pursue by having synergy between the MoP and IT. In education, services like transcripts, grades, home work, thesis evaluation and communication in admin and between Prof and student is needed.There is progress but more is needed.
Reply
Leonard Bertain
I agree wholeheartedly with you. Perhaps a less angry way to address this is to go back to Peter Drucker's book "Innovation and Entrepreneurship" 1985 in which he refers to 4 types of innovation: incremental, radical or disruptive, organizational and new business. He goes on to describe them (no time here). But the message that I think you want to convey is that when you look at India you see a country with a lot of people and if you put all of their minds in play (not just the "super-educated") you will end up with an awesome result. You can read about how I do incremental innovation at my website: http://www.bertain.com. Innovation done this way is fun and it will transform any business very quickly. Keep fighting for your proper recognition as a country of innovators because I really think you are. Best, Len Bertain, Ph.D. President, Corporate Innnovation Http://www.bertain.com 510-520-8011
Reply
Most Popular
Read
E-Mailed
Commented
   
- Indian CIOs more progressive than global counterparts: IBM study
- Obama-Singh to run last mile on nuclear deal
- IAF orders more Tejas LCAs to replace MiG-21s
- Ubuntu 9.10: A karmic disconnection
- High carryover and potential for breakouts
 
 More  
BS Poll
Cast Your Vote
 
   
 
Should sugar prices be decontrolled?
  Yes  No
Submit

  Hot Searches  
 
Amitabh Bachchan | N Chandrasekaran | Swine Flu | Mukesh Ambani | Anil Ambani | TCS | Infosys |  Air India |  Duronto |  Pranab Mukherjee | Sonia Gandhi | Congress | Rahul Gandhi |  Bigg Boss |  New Pension Scheme |  Service tax |  Excise duty |  Sebi | Tech Mahindra |  Ramalinga Raju |  Satyam |  Reliance  |  RBI |  GDP |  Gold |  Ratan Tata |  ICICI |  |  B-School | DLF  Sensex |  Tax calculator | Home Loan  | Bollywood | Personal Finance |  inflation | oil prices |  World Bank | Reliance Infratel |  HDFC |  Barack Obama  
  Member Area Write to the Editor RSS Archives Advanced Search
  Subscribe to BS print product BS e-paper Newsletter Portfolio Tracker
  BS Products BS Hindi BS Motoring
FOR HOT PRODUCTS
BS Bazaar.com
Home | Markets & Investing | Companies & Industry | Banking & Finance | Economy & Policy | Opinion
Life & Leisure | Management & Marketing | Tech World
About Us | Partner With Us | Code of Conduct | Careers | Advertise with us| Terms & Conditions | Disclaimer | Site Map | Contact Us | Feedback