India will emerge as the next global hub for innovation, according to a study on "R&D Ecosystem in India" conducted by Evalueserve and released by the British High Commission and the Canadian High Commission in India.
India targets to increase its R&D spend from less than 1 percent of GDP to 2 percent by 2012 under the 11th Five-Year Plan. The move will catapult India to the league of developed nations that spend 2.5 percent of their GDP on R&D on an average.
The Indian R&D ecosystem comprises various supporting infrastructure, government departments, research organisations, funding institutions and industry associations. The government is focusing on public-private partnerships, such as knowledge parks and incubator programmes, to promote commercialisation, transfer and diffusion of technology.
Angel investors and venture capitalists also have an important role in the commercialisation process, given the limited availability of funding for early stage companies and innovators. Further, venture capitalists are also providing a lot of late-stage funding. The number of private equity/venture capitalist deals in late-stage funding rose from 33 in 2005 to 104 in 2006, while the number of early stage funding deals rose from 19 in 2005 to 59 in 2006.
That India is becoming increasingly conducive to innovation is evident from the fact that the total number of patents filed in the country has increased significantly. The number of patent applications filed grew at a CAGR of 23.3 percent, from 10,592 in 2001-02 to 24,505 in 2005-06. The growth accelerated after India became Trade-Related Intellectual Property Rights (TRIPS) compliant in 2005.
Some IPR issues currently faced by India include low awareness on IP protection and longer patenting process. The Federation of Indian Chambers of Commerce and Industry (FICCI) drafted the Public Funded Research and Development (Protection, Utilisation and Regulation of Intellectual Property) Bill, 2007, an indigenous version of the Bayh-dole Act, to address these issues. The new legislation will emphasise education opportunities in science, technology, engineering and mathematics, and help R&D institutions and scientists to own the intellectual property they create.
Access the complete report at http://www.evalueserve.com/Media-And-Reports/WhitePapers.aspx.
Evalueserve provides custom research and analytics services to a client base of Global 5000 companies, in the following areas - Financial and Investment Research, Business Research, Market Research, Intellectual Property, Expert Network, Data Analytics and Modelling and Knowledge Technology Services. We currently have 2,475+ professionals in our research centres in India, China, Chile & Romania.