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1. 1
MANTHAN TOPIC: BRAIN GAIN
TEAM MEMBER IIM LUCKNOW ROLL
NUMBER
AMIT GEHLOT PGP28361
MADAN MUTHU PGP28382
MONIKA ALHAWAT PGP28387
POULAMI MONDAL PGP28310
SOUNABH MANDAL PGP28281
PROMOTING RESEARCH AND INNOVATION
IN INDIA
A presentation on implementable ideas to increase R&D efforts, expense and
contribution in India
2. CURRENT SCENARIO OF R&D IN INDIA
• Even though India is one of the
medium spending countries on
R&D , it spends on 0.9% of its GDP
on R&D.
•China is way ahead in terms of
expense on R&D and its share from
GDP
•In India, number of people
involved in R&D is also less.
Compared to China and other
developed countries.
SNAPSHOT OF THE PROPOSED SOLUTIONS
•Create “Flag Bearers” in Colleges who will act as a bridge between
government and students regarding the request for proposals
•How to handle the increase in the Patent Applications in India
TO BRIDGE THE
INFORMATION GAP
• Private Companies can be incentivized in two ways to invest in R&D
• Persuasive : Create SEZs across India, specially in Eastern region which has
minimum number of SEZs
• Coercive: Mandate industries with ( ) income to spend (())) on R&D.
TO INCENTIVISE PRIVATE
COMPANIES
•Increase investment of private companies in graduate and post graduate
schools to attract people to follow PhD in India
TO INCREASE HUMAN
SKILLS IN R&D
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3. FLAG BEARERS (FBs) - STUDENTS•It should be made
mandatory for all colleges
to inform all the students
about all the scholarships
Through
colleges
•Create a facebook page
and regularly send
notifications to relevant
students
Through
social
media
•teachers & students
should spread the word
Through
word of
mouth
•The book retailers should
be made aware through
pamphlets etc
Through
book
stores
•At the back of the text
books, we can write the
names & online links of
relevant scholarships
Through
text books
School
Has good rapport with
fellow student
Has been the class
monitor before
Graduation
Is active in extra
curricular activities
Is active on social
media
Post Graduation
Ha done some
research project in
graduation
Is active on social
media
Roles &
Responsibilities
Action Plan for FBs Cost of Training
Knowledge about
online websites of
scholarships
Give a list of scholarships &
application processes
Internet cost (almost
0)
In contact with HRD Half Yearly meetings with
HRD representatives & other
student ambassador
Travel Cost,
arrangement cost for
host college, fooding
and lodging cost
Convey information
to all the students
of school
•Hold regular meetings in
the school
•Put up pamphlets or
notices on notice boards
Printing Cost
Encourages
students to apply
Keep the students motivated
with the incentives and
learning opportunities that
these projects give
Time and energy Cost
PART 1: TO INCREASE THE SCHOLARSHIPS AWARDED BY GOVT BY INDIA
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4. PART 2: ROLE OF PRIVATE SECTOR IN R&D
Contribution towards R&D
activities in India
Contribution towards R&D activities in
other OECD Countries
R&D Spending by Private
Sectors in Major Countries
•Government takes up the
majority of the R&D expenditure
in India
•Of this almost 34.4% is done by
DRDO, followed by Dept of Space
(17%) . MNRE contributes only
0.1%
•This implies that very few private
players are currently engaged in
research in India
•In other OECD countries, private sector spends contributes towards 70% of R&D
going on. Japan, Korea, China and United States sees the maximum of private
sector spending in R&D
• Universities also tie up with industries to utilize best of both the worlds. For
example, BP and UC Berkley joined hands in 2007 to come up with next generation
of efficient biofuels. It has been awarded its first intellectual property patent early
this year.
•Though a lot of FDI influx is there recently, the companies prefer to set up IT R&D
in this country. Very little investment for R&D is done on conventional fields.
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5. IMPLEMENTATION PLAN OF SEZs
Minimum Capital
requirement for
SEZ ( R&D SEZ) for
mutual benefit
Investment
by potential
Private
Industries or
Govt.
Co-
Developers,
research
organizations
Type of SEZ Net Worth
criteria
(Rs.Crores)
Minimum
Investment
(Rs. Crores)
Sector Specific
& Others
50 250
Multi-product 250 1000
Minimum Land requirement varies with
sector (50-200 Hectares) [Biotech
Sector, Services]
Easy Availability of Labor/ Workforce
technical
Connectivity with rest of India
Open FDI acceptance policy
Around 600 SEZs waiting for approval
Easing Land
reform Policies
IT/ Scientific Staff
recruitment
Attracting
Investors and
ease of secondary
technologies
GrowthofSEZsinIndia
Speedy approval
of Licenses
6. Conceptual
Problems
Implementation
Problems
Revenue gains and Employment
generations would exceed the tax-
revenue losses
100% FDI allowed in SEZ areas
Increase in competition would promote
the domestic growth of indigenous
companies
Co-developer stance of companies
(26%) stake necessary for setting up
processing unit
No limit on the number of Co-
developers ( grouping of companies for
setting up of R&D centre) (Proposed)
Lease agreements with SEZ owner
entities
Net foreign earnings and tax-benefit
on export of product or services
developed
Private innovation firms in
collaboration with manufacturing firms
to co-develop R&D centers
Conversion of existing R&D areas to SEZ
areas
W
A
Y
F
O
R
W
A
R
D
CHALLENGES AND MITIGATIONS : SEZs
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7. Reports show that, though
Maximum R&D in the country is
carried out in Engineering and
Technology, the number of PhD
manpower in the workforce is
comparatively less.
Reason for low number of PhD
being low fixed pay or job
guarantee for PhD students. Very
less motivation to join research.
Unlike Natural Sciences, doctorate
, Engg and Tech is not a major
requirement for a high paying job
Industries and Government should
have defined Jobs and
approximately fixed pay for PhD
holders
Requirements to support a Doctoral or Post Doctoral
Research Project
• Primarily Financial Support is required
• The necessary laboratory equipment to be sponsored for the researcher or
arrangement be made such that the researcher can use the Company’s laboratory
• An increased stipend of INR 25,000 per month (INR 12,000 as per Government
norms + INR 13,000 by the Company) for the researcher
• Technical assistance provided by R&D personnel from the company.
• At the end of the Project, the Company either purchases the patents for the
research or recruits the researcher.
PART 3: INCREASING HUMAN SKILLS IN R&D
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8. SOLUTION FOR INCREASING PHD STUDENTS AND INDUSTRY PARTICIPATION IN R&D
Government
Mandate
• Problem addressed: Firms are focused on profit maximization and not on research
• Government launch Policies to ensure Continuous R&D in Academic Institutes
• Each Industry meeting the below criteria should invest at least 0.075% of net profit in Academic
Research, namely PhD and Post Doctoral Research
• Criteria: Firm making net Profit of more than INR 500 crores
• A bidding process model for Industries to choose from a pool of Central and State Government Institutes
Industry
Implementation
• Industries install separate team to monitor PhD and Post Doctoral Research done in Academic Institutes
• Based on industries perspectives of different projects, can bid for specific institutes
• Personnel from Industry should support the research project financially and technically
• Add clause for full financial support only if the research reaches patent stage
• The particular industry can recruit the particular candidate for research with fixed job description and pay
Motivated
Research
• Problem addressed: Low motivation in students for PhD, as its not a job requirement
• Industries coming to Institutes with specific funding and job descriptions will lead to more students take
up research
• Potentially reduce the brain drain, giving students all the infrastructure required for research
• Increased number of applied patents from the Institute everywhere along with the mandatory paper
publication
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9. 9
CHALLENGES AND MITIGATION IN INCREASING HUMAN SKILLS
Challenges Mitigation
•Companies will focus on only a very Institutes
and will not look into every potential researcher
•The system will initially seem enforced, where
possibility of company not giving timely
financial support and genuine technical support
exists
•Bidding process has to be structured to
protect both the company’s and institute’s
interest
•Question from companies, whether the
academic institute benefits more than the
particular researcher of vice versa
•Question of whether the researcher is
motivated through out the research period till
the patent is obtained
•Incentive for Institute to support the whole
Program
•Installation of a Separate Government agency
to support the whole Initiative
•Bidding process has to have both upper
limit (in the interest of the company) and
lower limit (in the interest of the research
projects)
•To increase potential project funding fpr
other tier 2 institutes, the Government
should have a preliminary survey on various
PhD and Post doctoral research happening
in various institutes across the Country.
10. PART 4: PATENT APPLICATIONS IN INDIA
•Number of the
patents applied is
increasing in India
•Number of pending
patents is also
increasing in India.
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Problem Solution
Inadequate staff in patent
office – Approx 400
Need at least 400 patent
examiners more
Patent related cases pending in
courts
Need a fast track court for
faster judgment on these cases
Less number of IT sector
patents despite large
knowledge pool
Reduce patent approval time to
attract MNCs to take patents in
India
Decreased intensity of IPO
Patenting
Increase investment in R&D in
Medical sector
14. 14
•Special Economic Zones (SEZs) are one of the ways in which companies can be
encouraged to go forward in R&D
•Indian SEZs focuses on Information Technology. This is evident from the fact
that India’s FDI is USD 5.3 billion in services while China attracted USD 27
billion in manufacturing alone.
•- it is estimated that nearly 15,00,000 jobs by of 2010 would be created by
SEZs
•The pie chart shows that majority of the R&D is going on in the South region.
Karnataka, Tamil Nadu and Andhra Pradesh have state incentives to invite
companies in the states.
• A lot of effort needs to be put on Eastern Region of India. This may be also
due to the geographical nature.
•Some states also have lengthy clearance procedures to get approval for space
for SEZ
SEZ DISTRIBUTION IN INDIA
15. PATENT APPLICATIONS IN INDIA
•Number of the patents
applied is increasing in
India
•Number of pending
patents is also
increasing in India.
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