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

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

2

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

3

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.

4

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

Gro

wth

of

SEZs

in In

dia

Speedy approval of Licenses

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

WAY FORWARD

CHALLENGES AND MITIGATIONS : SEZs

6

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

7

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

8

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.

PART 4: PATENT APPLICATIONS IN INDIA

•Number of the patents applied is increasing in India •Number of pending patents is also increasing in India.

10

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

• http://www.biofuelsdigest.com/bdigest/2013/06/10/uc-berkeley-and-bps-energy-biosciences-institute-awarded-first-biofuel-patent/

• http://nstmis-dst.org/rndstatistics%202007-2008/1.pdf

• http://www.pwc.in/en_IN/in/publications/assets/SEZinIndia.pdf

• http://www.asti.cgiar.org/private-sector-research

• http://www.careers360.com/news/3696-Explore-these-scholarships

• http://mhrd.gov.in/national_scholarships

• http://www.momascholarship.gov.in/

• http://www.ableindia.in/admin/attachments/mem_news/memnews662_govt_aids_patent_filing.pdf

• http://ficcirndsummit.com/pdf/FICCI-Battelle-Knowledge-Paper-Global-R&D-Summit-2013.pdf

• http://www.youtube.com/watch?v=wcJt8WAM9Uw

• http://ksiconnect.icrisat.org/wp-content/uploads/2013/05/Industrial-RD-in-India.pdf

• http://education.usibc.com/wp-content/uploads/2010/09/EY-FICCI-report09-Making-Indian-Higher-Education-Future-Ready.pdf

• http://www.financialexpress.com/news/boosting-private-sector-s-r-d/1142212

• http://www.psgias.ac.in/wp-content/uploads/2013/06/rdframewoork-psg.pdf

• http://www.deloitte.com/assets/Dcom-India/Local%20Assets/Documents/Whitepaper_on_RD_expenditure.pdf

11

REFERENCE (1/2)

• http://monitor.icef.com/2012/11/number-of-indian-students-heading-abroad-up-300-over-past-decade/

• http://www.deloitte.com/assets/Dcom-India/Local%20Assets/Documents/Whitepaper_on_RD_expenditure.pdf

• http://www.nias.res.in/docs/bkanitha-trendsreport.pdf

• http://www.moneycontrol.com/stocks/top-companies-in-india/net-profit-bse.html

• http://www.tradingeconomics.com/india/researchers-in-r-d-per-million-people-wb-data.html

• http://www.thehindubusinessline.com/news/science/india-still-lagging-in-innovation-rd-spend/article4459500.ece

• http://www.siliconindia.com/news/business/10-Companies-with-Highest-RD-Expenditures-nid-143477-cid-3.html

12

REFERENCE (2/2)

APPENDIX

13

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

PATENT APPLICATIONS IN INDIA

•Number of the patents applied is increasing in India •Number of pending patents is also increasing in India.

15