What was firing dopamine neurotransmitters faster is how street inventions roll up easily into industrial R&D, get scaled, produced and released in the market.
The World Intellectual Property Organisation (WIPO), a specialised agency of the United Nations, released the Global Innovation Index 2021. China was ranked 12, up 2 places from 2020. It surpassed middle-income and developed economies such as Japan, Israel and Canada. India was ranked 81 in 2015 and 46 in 2021.
R&D Ecosystem and the China model
Though India has an emerging R&D ecosystem in the private sector, the model is a centrally structured and budget-centered innovation, mostly foreign controlled. Also, India-driven inventions in the past decade are mainly centred in the pharma and engineering sectors.
Centralised R&D strategy is a bane for Indian economy. Let’s look at this example.
The long-haul consumer electronics player, Philips, made a China-specific innovation roadmap with their 4D strategy: design, decide, deliver and digitalise. Philips Greater China went public and fully aligned with the Chinese government agenda of the Healthy China 2030 for building the healthcare and consumer market for a better and healthier life. In quick time Philips China became the second most profitable market for Philips.
The WIPO report suggests India to produce more innovation outputs relative to its level of innovation investments. The core approach to doing R&D in India should change. India-driven inventions should happen at the grassroots level; organisations have to move away from the hitherto ‘tweak and release global products practices,’ sponsorship of occasional hackathons, uncoordinated interactions with start-up accelerators…
The ‘phoren’ lure…
Private and public institutions have to commit and draw their strategies and employees closer to customers and around solving specific problems of the state. It is disturbing to notice the trend where employees continue to show preference to work for global projects than for ‘Desi’-centered problem-solving. Though employment opportunities have expanded, the societal urge to go and work abroad has not changed much. The government’s mission to bolster the start-up ecosystem is trying to address this issue. But this requires funds, grit and strategy to attract and retain prized skilled talent.
WIDER PURPOSE OF R&D
NITI Aayog in its 2021 report states that R&D and innovation are associated not just with economic growth but also with poverty alleviation, reduction in inequality and increase in social mobility. A welcome trend is noticeable in leading Indian companies and MNCs operating in India: they are tying up their R&D-led innovation efforts with academia and incubating centres in universities and crowd-sourcing to solve problems specific to Indian customers. But this is not enough.
India commands a large, strong and young population, a surge in nationalism and a higher trust atmosphere when it comes to intellectual property compared to other Asian countries.
STRATEGY TO INNOVATE PRODUCTS
- Demonstrate leadership commitment to an India-specific innovation strategy for your business. Organisations cannot afford to raise their CAGR by only digital or technology-led innovations; equally, they have to focus on market-led innovations.
- Make strategy aligned to government yojanas (mission plans), for R&D efforts to yield results.
- Make your leadership and employees emotionally connect with the bigger purpose; work closer to your Indian consumer for at least 10 per cent of their work week. The employees will get a direct feel of a situation; thereby the solutions become more professional, spontaneous and agile with continuous feedbacks.
- Develop your new products inclusive of your sales, service teams; most importantly, your product users. Your cost of the product will go down and the speed to market will tremendously increase.
- Create a community of your loyal product users. Involve them and use their insights for your new products and that of competition.
India is now the world’s fifth largest economy. India’s GDP has risen quickly in the past 25 years, leap-frogging France and the UK. By 2025 we should aim to become one of the top 15 in the global innovation index and that goal is realistic. – Author is a human resource leader turned entrepreneur.
