Arun Mahesh Babu M S, IAS (AM), MD, Gujarat Power Corporation and MD, Uttar Gujarat Vij has more than 14 years of experience in the government sector. His expertise ranges across project management, strategic planning and international exposure to implement development programmes. He has received several awards from the government of India, Gujarat and from recognised institutions for his work in skills development, programme implementation, education, health and digital governance.
IE: How is the investment level in R&D?
AM: India has been steadily increasing its investment in R&D over the past few years. Various policies such as the Atal Innovation Mission, Make in India campaign, and the establishment of research institutes and technology parks are supporting this. Additionally, there has been significant investment from both domestic and international companies in R&D centers in India, particularly in sectors such as information technology, pharmaceuticals and automotive. However, compared to some other countries, overall investment in R&D as a percentage of GDP still remains relatively low. There is certainly room for further growth and enhancement, especially in fostering a culture of innovation and entrepreneurship, improving infrastructure and increasing collaboration between academia, industry and government.
IE: thoughts on both private and public investment related to R&D.
AM: Private investment in R&D has been growing steadily. Many multinational corporations prefer India due to the country’s large pool of skilled engineers and scientists, cost-effectiveness and conducive regulatory environment.
On the other hand, public investment in R&D has been gradually increasing, with the government launching various initiatives to support research and innovation across different sectors. However, there are challenges related to infrastructure constraints, limited collaboration between academia and industry and enhanced intellectual property rights protection.
IE: What initiatives can be taken to promote and enhance R&D?
AM:
• Increase in R&D funding by government and private conglomerates.
• Creating and supporting innovation ecosystems by establishing technology parks, incubators and accelerators.
• Encouraging collaboration between industry, academia and government research institutions through joint R&D projects, technology transfer programmes and knowledge-sharing platforms.
• Investing in education and skills development to ensure a steady supply of skilled researchers and scientists. This includes improving STEM education at all levels and providing scholarships and grants for higher education in science and technology fields.
• Streamlining regulatory processes and providing faster approvals for R&D projects and intellectual property rights to encourage innovation and investment.
IE: What would you consider a successful R&D initiative that has made a huge impact?
AM: A recent initiative in the energy sector in India is the green hydrogen policy unveiled in 2021. This aims to promote production and use of green hydrogen as a clean and sustainable energy source. In this policy, the government plans to establish a regulatory framework and provide financial incentives which includes for research and development funding, investment incentives and collaboration with industry and academia to drive innovation. Green hydrogen has the potential to play a significant role in decarbonising various sectors such as transportation, industry, steel and others. It can help reduce carbon footprint, enhance energy security and support our commitment to a net zero future. This initiative demonstrates India’s commitment to transitioning towards a sustainable and low-carbon energy future through R&D-driven innovation in the energy sector.
IE: How is the collaboration between academia, industry and government in fostering R&D advancement?
AM: Collaboration among these players can be furthered through various means.
• Academia-industry must be encouraged to collaborate on R&D projects addressing real-world challenges, supported by government funding and incentives.
• Technology transfer between academia and industry must be facilitated to expedite commercialisation of research outcomes and spur innovation.
• Public-private partnerships must be promoted to jointly fund and manage R&D initiatives that align with national priorities.
• Innovation clusters or technology parks must be established where academia, industry and government entities can collaborate and exchange knowledge.
• Nurturing entrepreneurship ecosystems to empower researchers to commercialise innovations and provide startups with access to funding, mentorship and infrastructure.
IE: How does India’s R&D Landscape compare internationally?
AM: India’s R&D landscape has made significant strides in recent years, but it still faces challenges in comparison to leading R&D nations. To strengthen India’s global competitiveness, certain steps can be taken.
• Increase investment in R&D as a percentage of GDP to match leading nations like the United States, China and South Korea.
• Enhancing quality and relevance of research output through targeted funding, collaboration and performance metrics.
• State-of-art R&D infrastructure and facilities to attract talent and foster innovation.
• International R&D collaborations, joint ventures, and technology partnerships to leverage global expertise and enhance competitiveness.
IE: how can the government support and incentivise the private sector
AM:
- R&D tax incentives to reduce the tax burden on companies engaged in innovative research.
- Providing grants, subsidies, or low-interest loans for projects addressing national priorities or societal impact.
- Facilitating PPPs between government research institutions or universities and private companies to share resources, expertise, and risks.
Strengthening IP laws and enforcement mechanisms to protect the intellectual property rights of private sector companies. - Streamlining regulatory processes to make R&D more cost-effective and efficient for companies and establish mechanisms for technology transfer from government-funded research institutions to the private sector.
- Sector-specific incentives targeting industries imperative for economic growth and competitiveness, enhancing tailored support programmes.
IE: What are the implications of global trends on the R&D landscape?
AM: Global trends, such as geopolitical shifts, climate change and digitalisation have significant implications for India’s R&D landscape. Geopolitical shifts influence international collaborations and funding opportunities. Climate change will spur R&D in renewable energy, sustainable agriculture and resilient infrastructure. Digitalisation, focusing on AI, IoT, and cybersecurity, enhances innovation and competitiveness. It is essential to invest in emerging technologies like genomics, nanotechnology and biotechnology for economic growth.
IE: specific sectors where India has untapped potential for R&D driven growth?
AM: Clean energy technologies, including solar, wind and hydro power, offer substantial growth opportunities. Water management technologies, environmental conservation, digital economy, cybersecurity, advanced manufacturing and agritech present promising areas for R&D investment. These innovations can improve efficiency, productivity and competitiveness, contributing to India’s sustainable development and global leadership.
