New Delhi: India is likely to emerge as the next global hub for innovation and join the club of developed nations, with the country aiming to increase its research and development (R&D) expenditure in the coming years, according to a study by Evaluserve, a global research and analytics firm.

The study stated that India is expected to strengthen its position in the innovation space as it is targeting to increase its R&D spend to two per cent of the GDP by 2012 under the 11th Five-Year Plan, from less than one per cent earlier.

"The move will catapult India to the league of developed nations that spend 2.5 per cent of their GDP on R&D, on an average," stated the study titled 'R&D Ecosystem in India' by the British and Canadian High Commissions in India.

The study further pointed out that angel investors and venture capitalists will have an important role to play in the commercialisation process, given the limited availability of funding for early stage companies and innovators.

Additionally, venture capitalists are also providing late-stage funding with the number of private equity/venture capitalist deals in late-stage funding increasing from 33 in 2005 to 104 in 2006.

Various supporting infrastructure, government departments, research organisations, funding institutions and industry associations comprises the R&D ecosystem in the country.

The study further stated that the scenario for the development has become feasible as the government is focusing on public-private partnerships, such as knowledge parks and incubator programmes, to promote commercialisation, transfer and diffusion of technology.