state of r & d in ict sector in india by dr t.h. chowdary* * director: center for telecom...
TRANSCRIPT
State of R & D in ICT Sector in India
By
Dr T.H. CHOWDARY** Director: Center for Telecom Management and Studies
Chairman: Pragna Bharati (intellect India )Former: Chairman & Managing Director
Videsh Sanchar Nigam Limited &Information Technology Advisor,
Government of Andhra PradeshT: +91(40) 6667-1191/ 2784-6137(O) 2784-3121®
F: +91 (40) 6667-1111, [email protected]
Talk @ Birla Science Center- Sixth Indo-Italian Workshop : 31st August 2007
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R & D Establishments
• Telecom Research center
• C-DOT
• C-DAC
• CEERI
• DRDO [+Allied Unit]
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Production/Manufacture Supported
• I T I
• B E L
• E C I L
• Scores of Private enterprises
• Members of TEMA
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R & D – Hardly any in India
• ITI – (Established:1948) R&D spend in 2006- Rs.38.73 Cr [2.21% of sales, down from 2.66% in 2005
• Ranbaxy 17.88%
• SuvenLife Sciences 26.59%
• Astra Microwave 13.26%
• Himachal Futuristic 0.8%
• Ramco 26.47% & Visual Soft 4.36%
• US IT Companies spend 15% to 30% of Sales on R &D
• Telcos (Mfg) in Mfg countries spend– 10% to 15% of Sales on R&D
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Growing National Champions
• China’s HUAWI; ZTE• Korea’s LG, Samsung…• Investing in R&D; Create IPR• Have we a Bell Labs & British Telecom research• Mfg. Cos ( Lucent, NEC, Fujitsu, Nokia, LG,
ZTE, INTEL, Motorola) spend ( 8 to 15)% of sales on R&D
• ZTE & HUAWI begotten & nourished by PLA
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Scientists Per One Million of Population
Japan 5,095
USA 4,099
Australia 3,393
UK 2,666
China 545
India 157
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Foreign Companies Engaging Indian intellect (1/2)
• Motorola – 1700 employees• 40% of software in its mobiles developed in India
• The Internet browser and multi-media messaging
system conceived and developed for 3G and GSM by Indian engineers working for foreign companies.
• The software going into US cars is being developed here in India .
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Foreign Companies Engaging Indian intellect (2/2)
• GE – Largest R&D center outside USA is in India in Bangalore with 2300 researchers, double that in Shanghai; A 2nd one in Hyderabad with 2000 researchers
• GE put in $ 80 mln in the Bangalore R&D facility
• GE’s Bangalore R&D field for 260 patents in the USA (37 already approved)
• Boeing USA is outsourcing Aircraft design to Russia ( $ 120/ Hr)
• Russians are outsourcing parts of the design to HAL (BG) at $ 30/Hr
• Gorbachev went to USA to recommend Moscow as Bangalore’s rival!
• An Indian retained does the work of 2 or 3 Europeans;
does not take 6 weeks of holidays & costs one-fourth
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New IT Townships
Co. Reliance DLF Tatas Unitech Baba kalyani
Acres. 100,000 50,000 30,000 30,000 27,000
Mahindra EMAR ANSAL’s Infosys
10,000 10,000 10,000 2,145
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Telecom Equipment & Services Market for 2003-2004
Figures in (Rs) crores
S. No
Product Total Market
Local Manufacture & Services
Imports
1 Switching-Wireline including CDMA 3,500 2,600 900
2 Switching-Wireless-GSM 9,650 500 9,150
3 Terminals- Fixed & Voice solution 850 600 250
4 Terminals-Wireless GSM & CDMA 11,375 600 200
5 Transmission Equipment – including line, 2-way radio, Multi-Channel Radio Relay System, DWDM & DLC
2,500 34 5
6 Cables – PIJF, OFC and Structured Cabling
700 50 -
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Telecom Equipment & Services Market for 2003-2004 (contd..)
S. No
Product Total Market
Local Manufacture & Services
Imports
7 EPBT, Feature Phones, CLI, PABX Phones, Customer Premises Equipment and voice solutions
850 250 244
8 VSAT Equipment 234 34 200
9 Signalling Equipment ( Road, Railways, Defeance etc.)
55 50 5
10 UPS, Power Plant, Inverter etc. 250 250 -
11 Test & Measurement Equipment 294 50 244
12 Miscellaneous Equipment, Data Communication Equipment – Call Monitoring, Antenna, Answering machines etc.
440 440 -
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Telecom Equipment & Services Market for 2003-2004 (contd..)
S. No
Product Total Market
Local Manufacture & Services
Imports
13 Billing equipment including OSS & BSS
175 50 125
14 Turnkey Services 2,272 2,272 -
15 Production by BSNL Factories 155 155 -
16 Export of Telecom Hardware an d Services
700 700** -
Total 34,000 14,000 20,000
•Source: DIT figures, estimates of V&D checked with DOT Annual Report and reference from selected
TEMA Members• The figures include grey market•Expenditure on infrastructure & terminal equipment assumed to be made during the same financial year
** 250 cr. Hardware, 450cr. Services
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What’s at stake… Telecom equipment
Market size Growth per annum
Wireless $2.5 mln 68%
Mobile handsets $2.38 mln 13%^
Others* $3.97mln 50%
Total $8.85 mln 43%
Telecom services**
$15.12 mln 16%
^ the GSM market grew by 76.2 per cent, but he CDMA market fell by 65 per cent during the last fiscal
* includes enterprise solutions and telecom software
** includes fixed line, mobile, national long-distance, international long distance, VSAT and radio trunking
(Source: Business World, 26 Dec 2005)
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Production and Export of Telecom Equipment During 1992-1993 to 2003-2004
Figures in (Rs) crores
S.No Year Production Export
1 1992-1993 3,985 24
2 1993-1994 5,500 58
3 1994-1995 7,000 131
4 1995-1996 7,750 310
5 1996-1997 8,300 240
6 1997-1998 9,960 296
7 1998-1999 10,000 250
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Production and Export of Telecom Equipment During 1992-1993 to 2003-2004
(contd..)
S.No Year Production Export
8 1999-2000 10,760 180
9 2000-2001 12,271 450
10 2001-2002 15,437 150
11 2002-2003 14,400 402
12 2003-2004 14,000 250
Source: TEMA/ DOT
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R&D Spend
• 9th plan 0.7% of GDP
• In a period 1985 to 1990 - 0.9% to 0.98%
1996-97 - 0.66%
2003 - 1.0%
• Developed countries spend 2% to 6% of GDP on R&D
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R&D Spend ( some ) in India
• S&T departments , GOI • 9th Plan Rs. 12,022 cr.• 10th Plan ( 2000- 07) Rs. 25,243 cr.• Automobiles Rs. 869 cr. 2% of sales• Forma Rs. 427 (1.5% of sales)• 24% or 17,000 R&D personnel (70,000) have
Ph.Ds• 11% or 7,700 R&D people are women
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Post Liberalisation &Privatisation of Telecoms
• R & D declined, almost nil
• P-Telcos & PSUs – all use imported equipment
• Indigenous R & D has no takers for production
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PSUs -
• HCL & HTL – Closed Shop
• ITI takes know-how from “all quarters of the world” [Aah nah bhadraa Kritavo yaantu Viswatah...] including from China’s ZTE & HUAWI
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Share of India in GlobalBPO & KPO Markets
Year 2003-’04 2010-’11 BPO 36% 55%
KPO 56% 71% Leaders:
Eng. Design Basic Data Biotech & Search Pharma
Integration &Mgment
400m $ 300m $ 280Education coming up
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India’s Global Companies
• Steel,
• Telecoms,
• Pharma,
• Wind-power,
• Construction,
• Oil & Gas [Co-opetition with China]
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Over 50 globals have R & D centers in India
• Motorola• CIT-Alcatel• Nokia• QUALCOM• HUAWI• Siemens• BT......• IPR created by Indians but owned by foreign
companies
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R & D in Engineering Institutions
• 1400 & Engineering colleges
• <100 have PG & Doctorate programs
• IISC, BITs, IITs, IIITs; NITs – must be developed as R & D centers.
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Creating IPR
• Learn; go up the food-chain Morph into ZTE/HUAWI/HAIET…
• Mission: Intellectual Property Reagan’s Funding: Chrysler (IACOCCO)
• SEMATEC (IBM, INTEL, Bell Labs; …Rivals’ together set up R&D to beat Japan to design and build FABs
• Fund Defence Research; contract Research (private sector salaries: Government Mission)
• Fund: IISC; IIIT’s; IITs
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Creating IPR (contd..)
• Tatas to take over C-DOT/ transform it into Bell Labs / BELCORE…
• Nation Telecom & I.T University(ies)• National Council for Development of Information
Society (NCDIS)• Incubators in about 50 universities/ Research
Institutes• Amend TRAI/ ITA to Constitute Statutory Research
Funding & Management of NCDIS• India as Home for MNC’s R&D & I.P Creation
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India to create IPR
• State Intervention thro’ Defence Establishments
• National Board for ICT - IP creation• A NASCOM ‘varsity (PG; R&D; Foreign
Trade; Management) • Select ‘varsities / Defence collaboration
(anything from CEERI-Pilani? From CSIR’s labs?