Research

BIENNIAL SURVEY AND RELATED DATA

We intend to conduct a biennial survey of the top 150 firms doing R&D in India, to understand the nature of the work being undertaken, how it is changing, the talent trends in the firm, and the impact of various government measures.

The Centre has started with the basic task of constructing an accurate and comprehensive list of the top firms doing R&D in the country. We have had discussions with the Department of Science & Technology (DST), the Department of Science & Industrial Research (DSIR) and the Confederation of Indian Industry (CII) to build a more comprehensive database on R&D in India. Currently, for example, R&D Data released by government does not capture the R&D spending by some of the Foreign MNCs that have the biggest R&D facility in the country.

Using available data from the annual reports of DSIR, we have thus far been able to compile a list of firms that have claimed weighted deduction under Section 35 2(AB) of the IT Act, 1961. The Centre would like to assist in collating information regarding the amount of expenditure for which firms were finally given the weighted deduction. Data such as this would greatly enhance our understanding of the true impact of the weighted deduction policy.

'FRUGAL' TECHNOLOGY IN HEALTHCARE

India lags behind in healthcare indicators compared to most developing nations. Our poor performance has been attributed to exorbitant costs of private healthcare, poor quality of public alternatives, lack of accessibility and a dearth of trained healthcare professionals.A number of multi-national as well as domestic companies in India have begun manufacturing "frugal" products that are targeted at addressing the healthcare needs of emerging economies like India.

This study aims to identify the new technologies and obtain empirical evidence on the effectiveness of these products on the ground. The study also aims to uncover ways to create an effective ecosystem to promote affordable healthcare through the use of technology. The recommendations could also include policy for development of healthcare technologies, methodological aspects for the measurement of outcomes and the complementarity between higher education and the healthcare sector.

A case for technological deepening in India’s healthcare sector

We examine the scope for increased public and private R&D expenditure in the healthcare sector in India. We then make a case for increased spend in the healthcare equipment and services sector that can lead to increased technological deepening in Indian healthcare as well as improve the affordability and accessibility of healthcare in India.
Download PDF Download PDF

Indian IT industry : Future competitiveness demands increased R&D spending

We compare Indian software firms with their global counterparts and look at how increased R&D expenditure can help Indian software firms to move up the value chain and become globally competetive.
Download PDF Download PDF

UPDATED TIME SERIES ON S&E DOCTORAL DEGREES ATTAINED IN INDIA (AS OF 2014)

When we compare India's share of S&E doctoral degrees as a percent of total PhDs granted, with that of select global economies, we find that India compares well with Switzerland, performs better than Germany, Japan and Korea and lags behind the United States, China and Taiwan.
Download PDF Download PDF

STUDY FOR WEIGHTED DEDUCTION FOR IN-HOUSE R&D


Both the recent policies on innovation, the Science and Technology Policy of 2003 and the Science, Technology and Innovation Policy of 2013, emphasized the importance of R&D by private sector enterprises to achieve the national goal of raising Gross Expenditure on Domestic R&D (GERD) to at least 2 per cent of the country's GDP. If India is to emerge a major manufacturing hub, a broad based increase in investments in R&D is essential to both absorb imported technologies and indeed in developing local technological capabilities.

The Indian government's tax incentive for R&D has seen a reduction in the weighted deduction amount from 200 percent to 150 percent starting April 2017. From fiscal year 2020-21, the weighted deduction on R&D expenditure will be further lowered to 100 percent. Prior to the recent Union Budget announcement on the weighted deduction policy, there had been a genuine concern that the authorities would do away with the policy entirely. In that context, the decision to lower the weighted deduction amount in a phased manner has definitely been welcomed by many in Industry. There will always be questions about the decision and whether it was the right one. Based on our preliminary analysis we find that having a weighted deduction policy appears to benefit firms although the effect is mainly for small and medium sized firms. We argue that going forward it may be worthwhile to tailor the policy to these firms.
Download PDF EPW Commentary : "Is the Government Justified in Reducing R&D Tax Incentives?"
Download PDF Weighted deductions for in-house R&D: Does it benefit small and medium firms more?

India's National Innovation System



In this paper, written as a chapter for Dr. Rakesh Mohan's forthcoming book, Dr. Naushad Forbes argues that India's innovation system is half-formed, rather than transformed. He focuses on learning and R&D, leaving discussion of changes in the higher education system, trade policy, business, and manufacturing to the specialized chapters in this book. He end with a discussion of what we must do to move from this half-formed National Innovation System to one that is transformed. In particular, he argues that India's unusual2 pattern of specialization in skill-intensive and capital-intensive manufacturing demands much more investment in innovation than currently happens.
Download PDF India’s National Innovation System:Transformed or Half-formed?
CTIER - Fiscal Incentives for RnD in India
CTIER - Govt Schemes for RnD in India
CTIER - Govt Incentives and Schems For Startups in India
CTIER - Classification