1. The ability to
innovate and deploy globally competitive technologies
has been recognized as
the next key driver of global economic change in the emerging knowledge
economy. While science is scholarship driven, technology and innovation are
market and competition driven, respectively. Currently, Indian Research and
Development landscape is largely influenced by the character of public funded
research and selection of R&D priorities is mostly supply driven. The
private sector investment into R&D have been marginal. Therefore, demand
driven component of R&D goals has been limited. Policy, strategy and tools
are required to stimulate larger investment into demand driven R&D goals.
Energy sector invests far too into R&D, although industrial turn over in
the sector is extremely high. Promotion of public- private partnership into
R&D and
clean energy is a critical component of India’s competitiveness in
global trade and industrial growth. New strategies and tools are required to
stimulate engagement of private sector into R&D and enhance the share of
private sector investment from the current 26% of India’s R&D spend to at
least 50% during the 12
th Plan period.
2. The larger
share of public investments into R&D
could also be leveraged by focusing of R&D for public and social ‘good priorities of the country.
There is an un-tapped opportunity for India to emerge as a global leader in affordable innovations
under PPP by focusing on R&D for public and social goods in the areas of agriculture and
food security, water, energy, affordable health care, education, environment, renovation of
urban infrastructure, S&T inputs to rural development etc. Residual idealism
among the youth and vast talent base offer an opportunity for the R&D sector in: the country to
gain leadership in affordable and social innovations. The Twelth, Five Year Plan should lead to
the creation of an innovation ecosystem most suited to the developmental phase of the country.
Such an ecosystem should be complete with new responses to risk averse nature of the
society, delivery models for innovative deployment of technologies, business models for
financing deployment of innovations and adjustments in governance and management models
for supporting strategic goals of innovations. The approach for R&D sector
should address all’ stages of life cycles of ideas; from creation to commercialization and value
creation. This1′ would call for paradigm shifts in approaches of planning for R&D in India
during the Twelth Five Year Plan period.
 3. A Paradigm shift in approach for the Science and
Technology sector
is required to focus on an output directed development path strategy rather than the present
input driven model. Such changes are essential for making a tangible and traceable change in
the socio- 
economic scene of the country. While basic research would need necessarily an
input-led growth path, differences in approach through output directed model would be
required for connecting knowledge and wealth generating activities of the country. Supply
side approach for promotion of advanced basic research should be further enabled with tools
for demand- side planning for innovations and technology development.
4.The structure
and work culture within the R&D sector
in the country are supportive of transactions of knowledge for money and technology transfer ideologies.
Success of this model has been limited so far. In the selection of R&D priori ties and
goals, strategic approaches and time bound delivery of outputs are not generally factored into.
Whenever the participation of the user sector in selection of R&D priorities has
been ensured, the usability of the R&D outputs increases significantly, a relationship model
involving all stake holders engaged in the conversion of concepts into commercial realities has
been far more successful than the transaction models deployed in the R&D sector in the
country. Several countries have successfully developed relationship models to connect R&D
outputs to national goals and economic development processes. Israel is highly successful
in creating wealth out of innovations. The approach of the Twelfth Five Year Plan for the
R&D sector should adopt such global best models for leveraging R&D outputs for
national economic development. Below are some strategic concerns that need to be addressed for
strengthening the eco-system and the proposed approaches for the way forward.
Enrichment of
Knowledge base.
5. Natural
evolution of Basic research
in India during the last three decades is inspired by the directions and priorities of the industrialized world, but without the
matching linkages among academy-research and industry. Various factors have limited the
global competitiveness of India in basic research. Although there are some general
improvements during the Eleventh Five Year Plan period with respect to publications and
patents on’ account of several measures, Indian basic research has been mostly supply
driven rather than catering to the increasing demands; both in terms of quantity and quality.
Indian systems for supporting basic research has so far not adopted adequate measures
for promoting institutional joint collaborative research with active schools in the
global scene in futuristic frontier areas of science. The multi disciplinary approach
towards solving India relevant specific problems as challenges needs to be undertaken in a systematic
6. The approach
therefore should be
to (i) reduce the artificial divide between academic 
teaching and research institutions in India, (ii) spot, attract, nurture, and
encourage sparks and talent in scientific research from under graduate to post graduate research
through a lifelong learning approach, (iii) Identify areas of national interest, gaps for
promotion of basic research and improving the quality of science education, (iv) focus on
oriented basic research for: meeting the national priorities on food and nutrition security,
affordable health care, water, energy and environment security etc., (v) 
Incentive, sharing
collaboration of multidisciplinary approach to enriching the knowledge base
through the global integration, and (vi) participate in Global Research Consortia in
creating mega facilities for basic research.
industry, and Scientific Establishment Collaboration:
7. India has the third largest education system in the
. A conducive research sector requires cutting edge research universities, industrial R&D Centres
and a network of Government Laboratories with well-maintained infrastructure and liberal
funding, working together towards defined objectives. Further, effective mechanisms of
collaboration need to be created for universities and industry bodies so that research output and
innovations can effectively be commercialized and transformed into marketable products and
services for last mile benefits.

8. The approach therefore should be to (i) encourage
universities and research 
centres to focus expertise and resources on key industrial focus areas, (ii) encourage
flows of knowledge, created by universities and scientific research establishments, into
industry, (iii) help universities create industry-ready talent pools, with practice-relevant
skills, (iv) use university expertise to upgrade industry talent, (v) encourage universities and
industries to apply faculty expertise in specific, operations-relevant problem areas, (vi)
synergise the expertise in universities and research establishments – in areas such as
manufacturing, ICT,and industrial management – to enhance the efficiency and productivity of
existing industries vi) identify, develop, and scale programmes and projects (such as
new research parks) that draw on and synergise complementary capacities within research
institutes and the private sector vii) draw on industry practitioners’ experience and
expertise to develop and advance research objectives at scientific establishments, teaching
curriculum development and upgrades at universities, and (viii) utilize industry
infrastructure for up scaling of technologies.
Incentivizing R&D in Public and Private Sector
8. There is an
urgent need for attracting larger investments of private sector into R&D. whereas the private sector investments into R&D in most globally competing
economies are in the range of 1.2 to 3.0 of GDP, the corresponding investment of the Indian
private sector never exceeded 0.2. While public funded institutions are generating
technology leads from Public funded R&D, the levels of utilization of such technology
leads by commercial enterprises have been limited. The present models of research
funding by and large in the country do not facilitate the venture funding of translational
research in the private sector, whereas several global models do so. Current fiscal incentives
for attraction of investments into R&D by way of tax benefits have led only to marginal
results and the linkages between academia-research and industry remain under developed and
weak. The investments into/by the Public Sector Undertakings for R&D have also been
much lower than desired. The State led stimulus for innovative products through
procurement guidelines, technology acquisitions or facilitating FDI in research in the country has not
been explored adequately. The systematic encouragement to the Indian diaspora also has not
been fully exploited. Stimulation of the entrepreneurial environment, reduction of the
stigma on failure, a strong angel and venture capital supporting system to back up
innovations and access to assured market for products of innovation are some key elements of a
well designed innovation ecosystem. The Twelfth Five Year Plan programmes of R&D
sector should look beyond the generation of technology leads, patents and intellectual
products. It should design and position sufficient incentives for not only R&D but also
for the utilization of R&D results leading to an economic outcome.
9. There is
therefore a need to create a vibrant landscape of Public-Private Partnership
and an enabling framework for attracting investment from the industrial sector,
both public and private sector into R&D system and incentivize the same for linking
development with technology sector. This would include: (i) creating early ‘trial’ markets
around national priorities and allowing private firms to recoup investments in R&D (ii)
helping private companies access the best technical resources – increasing the chances of
R&D success, reducing uncertainties, and incentivizing investment, (iii) enabling public and
private sector companies to overcome risks in commercialization and value capture and (iv)
making regulatory frameworks less complex, and more facilitative, for technological
innovation in the industrial sector.
Improving the Flow of Technology

10. It is
important that the development and results of affordable technology reach
and positively affect the people at the Bottom of the Pyramid (BoP) in the country.
Currently, the technological innovations fail to be inclusive in nature and cater to only
the affluent sections or people with relatively high levels of income in the economy. This
is because these technological innovations tend to have a high R&D cost which has to
be subsequently recovered when diffused in the economy. This high cost impedes the innovative developments to reach the needy and / or people with very low or no sources of
11. India is in a unique position to mount a strong
initiative for affordable innovations for technologies
for social and public good
by taking advantages of a) Low expertise costs and b) Vast talent base.
However, engagement of multiple stakeholders and creating Public- Private-Partnership
for promoting people-centric research is a challenge to address national goals
with specific targets in a time bound manner. While technologies for public,
strategic and social goods would require collaborative excellence, competitive
excellence models for private good would come from industrial sector, as is the
case in most developed countries.
12. The proposed approach would therefore be to (i)
engage multiple stakeholders and creating Public-Private-Partnerships to develop innovative business / engagement models
to include all sections of the economy (ii) increase R&D penetration in in the
MSME sector by developing institutional linkages with research & development
establishments (iii) address the immediate technological barriers faced by some
important needs and priorities of the country by setting up PAN India mission mode programmes for agriculture, food,
water, energy, environment and affordable human health care and Technology Missions,
(iv) create mechanisms for flow of technologies from strategic sector to non-strategic
sectors for social and public good applications and vice versa, and (v) enhance
the involvement of State S&T agencies to translate the technological developments for local reach.
13. Food
security of India
is closely related to development of technologies for increasing the agriculture outputs through process innovations for land saving
and water use efficiency. This also calls for development and deployment of new agro
biotechnology tools and precision agriculture for increasing the output of agriculture sector in
the country by synergizing the strengths of institutions both under public and private sector
and adopting a new approach for agriculture research and extension. With robust
growth of economy,
demands for research solutions for secondary agriculture are also expected to
rise, which would open up several new avenues for research-industry partnership in the
country and development of test beds for assessing the techno-commercial potentials of the
technology leads under Public-Private-Partnership models.
14. To achieve
optimal health for its people
, India has unique challenges due to its large population, demographic transition and vulnerability to all epidemics.
Elimination of endemic and pandemic diseases and controlling diabetes are the major areas which
require immediate R&D interventions in a mission mode. Biomedical devices and
instrumentation is another area of serious gap in the country. Therefore, breakthrough
innovations, with appropriate stress on translational research for affordable health care, are
the need of the hour and would call for new models and mechanisms for evaluating technologies
for improving healthcare at individual and public health level, fostering academia
– industry linkage; and linking technology developers with industry for translation of
lead products/processes. Given the enormity of the challenges ahead, strengthening
of public funded Bio-medical research system, both in scale and quality is essential, besides
incentivizing the industrial R&D through joint research between public and
private sector under the PPP model.
15. Water challenge is a major national issue in the country both in terms
of quality and availability. Quality related issues on account of contamination of water
require a set of technological solutions different from those needed to address quantum related
challenges of water starved regions. Sustainability of research led solutions depends on
interface of technology with policy and societal behaviour. Water related technologies form
an ideal theme for building state-centre partnerships. The challenge therefore is to
convert research outputs from the laboratories into revenue models based solutions in a coordinated
manner among the relevant departments in both states and centre for innovative deployment
under real field conditions.
16. The Energy sector R&D activities in India is dominated by the
public sector, however, the size of investments are much smaller, both in absolute terms and
as percentage of the sales turnover. Our expenditure on energy R&D
excepting for Atomic Energy, which provides less than 3 percent of our total
electrical energy supply, is 
minuscule compared to what industry and
governments spend in developed countries. Biomass and coal, which are the
mainstays of the Indian energy system, receive little attention in terms of
R&D. A PAN India effort on energy research with effective coordination
would seem appropriate. Right sized technologies for decentralized applications
for energy generation from agricultural biomass will be a valuable contribution
and efforts are already on way towards development of technologies for high
rate bio-methanation from agro residues. Bio-refinery is an emerging theme.
Viable technologies complete with solutions for meeting discharge standards
would be a valuable step forward. Development of innovative climate resilient technologies
should find larger share on the overall energy R&D front. Once again development of such technologies must be backed up with suitable schemes for
supporting deployment until sustainable revenue models are standardized and market forces
propagate technology utilization.
17. MSME sector in India which is a strong pillar of economic growth is
characterised by low technology levels with some exceptions. This acts as a major handicap in
the growth of MSME sector in the emerging global market and is therefore, seen as the next
frontier for infusion of technology, While R&D has taken great strides in other fields,
its penetration to the MSMEs has been very minimal. Despite efforts, institutional linkages with
research & development establishments and industry (including MSEs) have not developed.
The challenge therefore is to enable the MSMEs embrace the new technologies to leap
frog and contribute significantly in the inclusive growth process. 
Promoting Collaborations through Clusters
18. Collaborations
can play a crucial role in stimulating innovations and fostering 
knowledge transfers which would foster interconnections that link intellectual,
human, and creative capital as well as unleash underutilized capital. Such
enterprises could 
take the shape of physical or virtual clusters, which bring together research,
business, risk 
capital, and creativity to turn ideas into products, processes, and services.
In the Open 
Innovation Model, by using an “open source” and collaborative
approach, organizations 
could expect to develop affordable products for the world which otherwise would
not be a 
cost effective option for many organizations. Many clusters and collaborative
initiatives to 
foster innovation have begun to operate in the country.
19. Government needs to take
appropriate steps to promote the growth
of such collaborative initiatives, both in the physical and
virtual domains. The National Innov
ation Council (NInC) is in the process of facilitating the
setting up of industry and univ
ersity, based clusters to spur innovations.
Intellectual Property Rights

20. Management
of Intellectual Property Rights (IPR)
has become extremely important 
in the new knowledge economy with global competition. An adequate right on the intellectual property produced by an innovator enables innovators to’ recoup
investments and make profits. Thus IPR spurs innovation. Good national IPR
systems also 
enable knowledge of technological advances to be accessible through the patent
system to 
others who can build on them. Thus innovation can be further facilitated. To
obtain both 
these benefits for innovation, India must improve its management of IPR. On one
hand, the 
administrative machinery for IPR management must be considerably strengthened
professionalized-DIPP has taken up this task. At the same time, India must engage
confidence in the evolution of international frameworks for improving IPR
21. Holders of
IPR have incentives to strengthen
and extend their monopolies. However monopolies can restrain competition and further innovation, and thus tend to
increase costs for customers. This is the fear even in the West, with respect to
pharmaceuticals for example Moreover, the concept of monopolizing knowledge that underlies prevalent models
of IPR, can have perverse effects when it is extended to areas of traditional
knowledge, preventing poorer people from continuing to use their own knowledge without payments to
those who have ‘patented’ it under IPR. New models of collaborative innovation are
emerging, such as Open Source Drug Discovery-an Indian innovation, that reduce costs of
innovation and increase its speed. Concepts of IPR will have to be developed to suit such new
models of innovation in which, incidentally, India has great stakes because of their
potential to produce ‘frugal’ innovations for inclusive growth. Therefore, as India aims to become
amongst the global leaders in innovation, it will also have to be amongst the leaders in
efficient management of and innovations in IPR.
Platform for
Best Practices and Innovations.

22. Currently,
there are many enterprises across the country which are delivering benefits to citizens
and meeting the challenges of inclusion in areas such as
health, education energy, low-cost housing, sanitation, and more through innovative
solutions. Often these go beyond the formal confines of R&D labs to include
innovations in public service delivery or organisational innovations in local communities aimed at
inclusion. However, there is no aggregated platform or single repository to collate and disseminate
these best practices and ideas. Also, while some such innovations manage to
gamer attention on a national scale, most of these workable solutions remain
confined’ to their local contexts and don’t achieve economies of scale because of the lack of a single
platform for sharing these best practices among multiple stakeholders. Strengthening the
innovation eco- system requires a platform for information sharing and dissemination to ensure:
(1) improved access to knowledge and (2) Support in the form of resources,
linkages, mentoring and outreach. Greater knowledge of innovations can stimulate their adoptions
and adaptations on a large scale. This decentralized,
open, and networked model would enable information sharing on innovations and collaboration among stakeholders on an unprecedented scale.
Improving Governance in S&T Institutions:
23. Optimum
utilization of appropriate institutional framework
created to enhance India’s
R&D capability need to undergo critical review to ensure that the much
needed resources, both financial and human, are deployed in an optimal fashion.
This may even call for foreclosing some of the programmes which have outlived
their relevance. It is critical to leverage the industrial infrastructure and
create appropriate institutional framework and organizational mechanisms
cutting across departments to derive maximum benefits of the investments.

24. It would be
to (i) bring in radical but participative transformation, which is
multifaceted and multi-directional for structural changes in rebuilding and
transforming existing institutions, (ii) provide greater autonomy to S&T
institutions including de- bureaucratization, (iii) provide flexibility to
younger generation of scientists to pursue their creative ideas, (iv) enhance
synergy for inter-institutional collaborative research, (v) promote setting up
of newer world class publicly owned and privately managed institutions and (vi)
bring in process reforms, particularly with relation to HR, finance, procurement
and performance appraisal.
Use of GIS for Development
25. Geographical
Information System (GIS)
has assumed a critical role in the planning process
and is the key to better decision-making. GIS is also now powering more open
government and thereby leveraging economic and social development and reaching
the gains of development to the grass-root level and also bringing in
accountability and responsibility of public activities. It provides a much
needed foothold for solving complex spatial problems: such as tracking the air,
surface and groundwater flows and concentrations of pollutants, developing
population distribution projections, preparing land use scenarios and
anticipating future land development; developing urban growth models etc.
26. Therefore it would be necessary to (i) make available the spatial
information, and the dissemination of this information to all concerned by
development of a centralized GIS with a common IT platform for accessing
information, resulting in streamlined processes and greater operational
efficiencies (ii) frame the Policies that support the necessary sharing of data
across the stakeholders, data interoperability and standards (iii) fully
integrate the global positioning system and remote sensing imagery with GIS and
radical new forms of display on a 3D view of the terrain (iv) educate potential
users on the utilization of GIS data.
Supportive Financial System
27. Innovation requires a financial system which is supportive and
inclusive and which provides the necessary risk capital to spur innovations and
enterprises. Venture Funds are recognized globally as the most suitable form of
providing risk capital for the growth of innovative technology and breakthrough
28. While India
is amongst the top recipients in Asia for Venture Funds and Private Equity
so far, these investments need to be focused on small early stage
start-ups and not only into relatively large and ‘safer’ investments. To have a
greater impact existing funding options, especially made available by the Government
need to increased India’s dependency on foreign VC/PE funds and almost no
domestic venture capital needs to 
be addressed.
29. Despite the
growth in the VC industry in India
and the complementary increase i
n government schemes, the
seed funding stage continues to be severely hampered. Also, it is especially crucial to provide funding for stimulating innovations that will
produce socially useful outcomes for poorer people and enterprises which are focused on
delivering this. In light of this, the Indian innovation eco-system requires early stage funds
acting as angel investors. A dedicated fund, seeded by the Government, and targeted at
promoting innovative initiatives that focus on inclusive growth could play a crucial
30. In addition,
there is a need to take up policy initiatives for grants to private sector
undertaking R&D in public and social goods, establishment of test beds for
technologies developed by public funded institutions, competitive grant system
for states for 
innovative deployment of indigenous technologies, and fostering partnerships
between R&D 
institutions under socio-economic ministries of the Government of India and

31.  Regular, rather frequent interaction with
G-20 and SAARC countries
would be needed for keeping update our S&T plan.
The Department of Science & Technology New Delhi could be the nodal agency
in this regards.