India has been ranked as the world’s sixth most ‘innovative’ country, according to multinational conglomerate GE's Annual Global Innovation Barometer. India is increasingly seen as a product development destination and firms are now offshoring complete product responsibility.
Innovation capacity is the driving force behind the country’s growth and competitiveness. Innovation and research and development (R&D) are becoming the focus areas of India’s growth story. A strong interaction between R&D activities and business fosters the dynamics of innovation generation. India with its strong workforce, good engineering talent and a partner-friendly government is focusing on research based innovation and implementation of quality new ideas for growth and progress.
India plans to set up a dedicated Rs 5,000 crore (US$ 809.06 million) fund—India Inclusive Innovation Fund—to boost scientific innovations that can improve the life of the common man. The Union Government will initially contribute Rs 100 crore (US$ 16.18 million) to this fund, said Mr P Chidambaram, Finance Minister, Government of India.
Indian engineering research and development (ER&D) industry is expected to treble from the current size of US$ 10– US$ 11 billion by 2020, according to National Association of Software and Services Companies (Nasscom). With India home to 750 ER&D companies at present, the number of people engaged in this sector will also grow three times from the current 400,000, said Mr Som Mittal, President, Nasscom.
The services sector which includes R&D, testing and analysis besides other related segments attracted foreign direct investments (FDI) worth US$ 38,562 million between April 2000 to September 2013, an increase of 19 per cent to the total FDI inflows in terms of US$, according to data published by Department of Industrial Policy and Promotion (DIPP).
Wipro has been ranked as a leader in the global R&D service provider survey conducted by Zinnov Management Consulting, for the fourth successive year. The ratings are based on five key parameters—scalability, R&D practice maturity, breadth of R&D services, innovation and ecosystem connects.
Japanese companies are keen to establish telecom gear test labs in India even as the government prepares to invite bids from private lab operators to pave the way for local testing from July 2014.
Furthermore, three more academic institutes have signed memorandum of understanding (MoU) separately with the International Centre for Promotion of Enterprises (ICPE). The signing of MoUs is expected to go a long way in promoting professionalism and executive development in Public Enterprises of India and Slovenia.
Big innovations are required and will continue, but the idea here is to open opportunities for effective, high-volume and low-cost solutions, highlighted Mr Gopichand Katragadda, Chairman and Managing Director, GE India Technology Centre (GE-ITC). From a smart medicine pack that keeps a tab on a person taking tuberculosis (TB) medicines to technology that identifies the right blood vessel for an intravenous procedure, innovations are now coming in small packages.
The following are some of the key developments in the sector:
Some of the major investments: