Why the Union Budget’s plans for deep tech and research funding are significant

Why the Union Budget’s plans for deep tech and research funding are significant

Subject: Science and tech

Section: Awareness in IT and computers

Context:

• In the Interim Budget speech, Finance Minister Nirmala Sitharaman announced a Rs 1 lakh crore fund to provide long-term, low-cost or zero-interest loans for research and development.

More on news:

• A promise has been made  to launch a new scheme to strengthen deep-tech capabilities in the defense sector — an announcement that is likely to be followed up later in the year with a larger policy to promote deep tech startups across all sectors, not just defense.
• The separate announcements on the fund and defense deep tech are intricately linked, and must be seen together with the government’s other plans for the R&D sector.

The 1 lakh crore corpus

• Rs 1 lakh crore corpus to finance research and development becomes important.
• Startups and other private sector ventures who can obtain seed money for their projects are expected to be the main beneficiaries.
• The idea is to start the flow of money in the research ecosystem  and the hope is that as projects take off, industry would be encouraged to invest its own money, and the pool would grow, benefiting everyone in the research community.
• Expectations of the infusion of private sector money into research have been believed earlier.
• Even where funds are available, delays and interruptions in disbursal often affects projects.
• There have been only nominal increases in budgetary allocations of its science and research departments in the Interim Budget. 
• The highest increase, for CSIR, which runs a network of 37 labs, is all of about 9%, and the Department of Space has received only a 4% increment in its budget. 
• The Departments of Atomic Energy and Biotechnology, and the Ministry of Earth Sciences have actually had their budgets slashed.

What is deep tech:

• The term “deep tech” was coined by Swati Chaturvedi, the founder and CEO of the online investment platform Propel(x), which connects early stage Deep Tech with investors.
• Deep tech, or deep technology, refers to those startups whose business model is based on high tech innovation in engineering, or significant scientific advances. 
• Deep technology (also deep tech or DeepTech) or hard tech is a classification of organization, or more typically startup company, with the expressed objective of providing technology solutions based on substantial scientific or engineering challenges.
• They present challenges requiring lengthy research and development, and large capital investment before successful commercialization.
• Their primary risk is technical risk, while market risk is often significantly lower due to the clear potential value of the solution to society.
• The underlying scientific or engineering problems being solved by deep tech and hard tech companies generate valuable intellectual property and are hard to reproduce.

Applications of Deep Tech:

• Advanced Materials
  • These are new or modifications of existing synthetic or biobased materials that yield superior performance.
  • Oftentimes, new materials are developed using two or more existing materials that differ significantly from one another, but when combined, result in a material with its own characteristics (like fiberglass), called a composite material.
  • Example of such advanced materials are –
    • Photovoltaic films
    • Biodegradable plastic
• Artificial Intelligence
  • AI refers to the simulation of human-like intelligence in machines that are programmed to think like humans and perform tasks that used to be the exclusive purview of humans.
  • The launch of voice assistants, medical imagery analysis, big data analytics, etc. are a sure-shot sign that machines can be developed to do any task that a human can do.
• Biotechnology
  • Biotechnology involves developing valuable products by exploiting existing biological processes or by developing new ones.
  • Genetic manipulation of microorganisms for the production of antibiotics and vaccines, genetically modified seeds that are more resistant to climate change and pests, etc. are some examples of how biotechnology is disrupting the current system.
• Blockchain
  • Blockchain is a growing list of records called blocks that stores a history of transactions in a secure and transparent way.
  • The users of the blockchain can track the history and add to the blockchain but can’t modify the existing blocks.
• Robotics & Drones
  • Robotics is the intersection of science, engineering and technology producing machines called robots to perform tasks in an automated fashion.
  • Usually, deep tech is used to develop robots to get the work done in industries where the working environment is dangerous or hazardous for humans.
  • The new technology makes use of human senses in robots to develop more self-sufficient artificially intelligent robots that permit mobility and decision making in an unistructural environment to help humans complete tasks in even a better way.
  • Drones are a subclass of robots that can fly and are usually more mobile.
  • These robots are often used to transport goods, map territory, or for surveillance purposes.
• Photonics & Electronics
  • Photonics is a discipline of science focused on generating and harnessing the properties of photons (particles of light).
  • It involves the use of lasers, optics, fiber-optics, and electro-optical devices in numerous fields of technology like alternate energy, manufacturing, telecommunication, security, etc.
• Quantum Computing
• Quantum computing refers to leveraging the unique properties of matter at nanoscale to solve computational problems, such as integer factorization substantially faster than classical computers.
• Several quantum computing models exist today, like –
• Quantum Circuit Model,
• Quantum Turing Machine,
• Adiabatic Quantum Computer,
• One-Way Quantum Computer, And
• Various Quantum Cellular Automata.

Why does deep tech matter?

• Deep tech refers to advanced and disruptive technologies, many of which are still under development, that have the potential to trigger transformative change, and provide solutions for the future.
• The term is used to describe cutting-edge research in nanotechnology, biotechnology, material sciences, quantum technologies, semiconductors, artificial intelligence, data sciences, robotics, 3D printing, etc. 
• These technologies are expected to play a key role to address complex global challenges like climate change, hunger, epidemics, energy access, mobility, physical and digital infrastructure, and cyber security.
• Advanced capabilities in deep tech are also likely to enhance productivity and drive economic growth and create jobs in coming years, and offer competitive advantage to countries with strong foundations in these areas.
• With its large base of relatively high-quality science and engineering manpower and a fairly well-established technology culture, India feels it is well placed to be one of the frontrunners in these areas.

Building an ecosystem for Deep Tech.

• The government has tried to incentivise research in some of these areas by setting up a National Mission on Transformative Mobility and Battery Storage and National Quantum Mission.
• The National Deep Tech Startup Policy (NDTSP), piloted by the Department for Promotion of Industry and Internal Trade and the Office of the Principal Scientific Adviser, is currently awaiting government approval.
• The policy seeks to address specific challenges faced by technology startups, and to provide them with a platform to compete and collaborate with the best in the world.
• The idea is to create a deep tech startup ecosystem by offering the right incentives to companies that invest time and money in innovation and research.