R&D Spend — Golden Intervention Or Smoke and Mirrors

  • February 9, 2024
  • Posted by: OptimizeIAS Team
  • Category: DPN Topics
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R&D Spend — Golden Intervention Or Smoke and Mirrors

Subject: Science and tech

Section: Msc

Context

  • The announcement in the interim Budget by Union Finance Minister Nirmala Sitharaman regarding the establishment of a one lakh crore rupees corpus with fifty-year interest-free loans to promote private sector research and innovation in sunrise domains has ignited discussions about the effectiveness and implications of such a move.

A sunrise industry

  • A sunrise industry refers to a sector or area of economic activity that is experiencing rapid growth and expansion, often characterized by the emergence of new technologies, products, or services. These industries typically represent promising opportunities for investment and development due to their potential to drive innovation, create jobs, and contribute significantly to economic growth.

Private Sector Contribution and International Comparisons

  • India’s private sector’s contribution to research and development (R&D) expenditure has historically been low, constituting only 36.4% of the national gross expenditure on R&D (GERD) in 2020-21.
  • Comparisons with global leaders in R&D investment such as Germany, South Korea, and the United States, where private sector contributions to national GERD are significantly higher (67%, 79%, and 75% respectively), highlight the disparity and raise questions about the necessity for private sector dominance in R&D spending.
  • These comparisons also prompt reflection on whether international benchmarks for R&D expenditure are relevant to India’s unique developmental context.

Trends in India’s R&D Expenditure

  • Despite an increase in absolute terms, India’s R&D expenditure as a fraction of GDP has been steadily declining, underscoring a lag in keeping pace with more technologically advanced nations.
  • The decline from 0.82% to approximately 0.64% of GDP from 2009-10 to 2020-21 highlights the need for concerted efforts to bolster R&D investment in India.
The Government of India has been actively promoting research and development (R&D) across various sectors:

Science and Engineering Research Board (SERB): 

Established through an Act of Parliament, SERB supports basic research in science and engineering.

It is instrumental in funding research projects, scientific and engineering research programs, and improving the research ecosystem in the country.

Department of Science & Technology (DST): 

DST runs multiple programs to promote R&D in science and technology.

Initiatives like the Technology Development Board (TDB), which funds the commercialization of indigenous technology, and the Innovation in Science Pursuit for Inspired Research (INSPIRE) program, aimed at attracting talent

to the field of science, are notable.

Department of Biotechnology (DBT): 

The DBT funds R&D in biotechnology, including agricultural, health, and environmental biotechnology sectors. Its Biotechnology Industry Research Assistance Council (BIRAC) initiative is significant for promoting research and innovation in biotech enterprises.

Indian Council of Agricultural Research (ICAR): 

ICAR supports R&D in agriculture to increase productivity, ensure food security,

and promote sustainable agricultural practices. It operates through a network of research institutes and Krishi Vigyan Kendras (KVKs).

Atal Innovation Mission (AIM):

Launched by NITI Aayog, AIM aims to promote a culture of innovation and entrepreneurship. It includes setting up Atal Tinkering Labs (ATLs) in schools to foster curiosity among students, and Atal Incubation Centres (AICs) to assist startups.

National Initiative for Developing and Harnessing Innovations (NIDHI): 

Operated by the DST, NIDHI supports startups and entrepreneurs in turning their ideas into viable products or businesses. It provides funding, mentorship, and incubation support.

Digital India R&D Fund: 

Aimed at promoting research in digital technology areas including IoT, AI, and big data, this fund supports projects that can lead to the development of innovative digital products or services.

Rajiv Gandhi Science and Technology Commission:

Specifically focusing on Maharashtra, this commission funds R&D projects that have the potential to address local needs and promote regional development.

R&D Spend — Golden Intervention Or Smoke and Mirrors Science and tech