Low R&D Spending Holding Back India’s Potential, Says FICCI-E&Y Report

From Fragmentation to Innovation: FICCI-E&Y Chart India's Path to a Robust Research Ecosystem and Urges Better Coordination in India's Research to Drive Global Competitiveness

The recent report by FICCI and Ernst & Young provides a detailed analysis of the current research landscape in Higher Education Institutions (HEIs) across India, emphasizing its crucial role in achieving Vision 2047 and Sustainable Development Goals (SDGs). The report calls for strengthened research infrastructure to elevate India's global research stature, offering strategic recommendations to address existing gaps.

Fragmented Research Ecosystem

The report released during the FICCI Higher Education Summit 2024 in New Delhi, identifies a fragmented research ecosystem in India, citing the lack of coordination between different entities, which hinders cross-disciplinary research and collaboration. Despite the government's efforts to promote research, innovation, and startups through the National Education Policy (NEP) 2020, challenges persist, particularly in research funding, intellectual property regulations, and innovation incentives.

India's R&D Spending: Global Comparisons

The report highlights India's R&D expenditure at 0.65% of GDP, which is significantly lower than that of developed nations. This limited investment, primarily government-driven, results in weak research infrastructure and subpar quality. Corporate R&D spending constitutes only 41% of the gross expenditure, reflecting low private sector participation in innovation. Comparatively, India ranks fourth globally in paper publications, but metrics like the H-index and citations per paper lag behind international peers, indicating the need for improvement in research quality.

Motivation and Incentives for Faculty and Students

A notable challenge outlined in the report is the lack of motivation among teachers and students to engage in research activities. This issue, coupled with limited incentives, has led to substandard research outcomes. To address this, the report recommends restructuring course and credit systems to incentivize research, offering quality-focused grants, and integrating interdisciplinary research into the curriculum.

Categorization of Research Models

The report categorizes research into three models:

Academic Research: Primarily conducted within educational institutions, focusing on fundamental research with limited industry collaboration.

Industry Research: Undertaken by companies to drive product development and innovation.

Industry-Academia Collaboration: A hybrid model aimed at bridging the gap between academic research and industry needs. The report suggests that effective coordination between these entities can pool resources, expertise, and technologies for greater impact.

Each model is analyzed in terms of its current state, global comparisons, trends, and challenges, along with relevant government policies. The report highlights the need for collaborative efforts to foster innovation, emphasizing that the lack of strong partnerships restricts India's potential.

Recommendations Across Stakeholders

The FICCI-E&Y report outlines a five-pillar strategic framework (monetary, operational, policy, personnel, and innovation) with specific recommendations for academia, industry, and government:

For Academia:

Restructure the course and credits system to promote research involvement.

Strengthen incubation programs to support startups and innovation.

Integrate interdisciplinary research into the curriculum to broaden research scope.

For Industry:

Increase R&D spending through Corporate Social Responsibility (CSR) programs.

Develop dedicated liaison offices with HEIs to facilitate research funding and collaboration.

For Government:

Streamline the Intellectual Property Rights (IPR) process to make it more transparent.

Ensure equitable research funding across all colleges, not just premier institutions.

Implement tools to assess the impact of research and establish a framework for research ethics.

Key Area: Internationalization of Education

The report notes that internationalization in education is still in its early stages, but NEP 2020 aims to encourage cross-border collaborations. Indian HEIs are gradually attracting international faculty and students, which could enhance research quality and global partnerships. However, institutes still struggle to secure sponsorships and funding on par with their international counterparts, limiting their capacity for high-quality research.

The Importance of Research for India’s Development

Research is vital for national progress, offering evidence-based insights that inform social policies and address issues like poverty, inequality, and social justice. The report provides examples of how research has driven innovations such as digital payments through the Unified Payments Interface (UPI), vaccine development (e.g., Covaxin), and cost-efficient space missions (e.g., Mangalyaan). Furthermore, research in fields like climate change, public health, and education can lead to sustainable development, better health outcomes, and economic growth.

Economic and Social Impact

Research initiatives also create job opportunities, enhance skill development, and attract global partnerships. In 2023, India's research ecosystem witnessed a 30% increase in domestic patent filings, with over 83,000 patents filed, reflecting the growing emphasis on innovation. The report underscores that fostering a robust research environment is essential for maintaining India’s competitive edge on the global stage.

The FICCI-E&Y report offers a strategic framework that includes:

Monetary: Increase funding for R&D, encouraging both public and private sector investments.

Operational: Enhance infrastructure to support research activities.

Policy: Streamline IPR laws and ensure transparent regulations to foster innovation.

Personnel: Develop skilled human resources by incentivizing research involvement among students and faculty.

Innovation: Promote collaboration between academia, industry, and government to drive technology development and commercialization.

Conclusion

The report concludes by stressing the importance of creating a unified research ecosystem in India, where HEIs, industry, and the government collaborate effectively. Open access to research findings and knowledge sharing among researchers, policymakers, and students is crucial to achieving this goal. The report encourages further research on NEP 2020 to assess its impact on the education system, with insights from researchers helping to refine and improve the policy.