Science, Technology and Innovation for Make in India: Issues and Conditions

Transcription

1 Science, Technology and Innovation for Make in India: Issues and Conditions Dr. Nirmalya Bagchi Dean of Research and Management Studies Administrative Staff College of India Hyderabad

2 What to Make in India Low Tech Low CAPEX, labour intensive Polluting, labour issues, large land requirements, resource intensive, High non tech barriers to entry High Tech High CAPEX, tech intensive Non polluting, less land intensive, highly skill intensive, highly R&D intensive, low non tech barriers to entry Military Industrial Complex Oriented? Export Oriented? Demand Driven or Supply Driven? Achieving Economies of Scale like China? Innovation Driven? Small scale, large scale, start up?

3 Global Value Chain IP USA Design Western Europe Manufacturing China/SE Asia Global Market Raw Material Africa / Third World

4 Low Technology Intensity High Labour Intensity Eg. Garments High Technology Intensity High Labour Intensity Eg. ICT, Biotech? Low Technology Intensity Low Labour Intensity Eg. Weaving High Technology Intensity Low Labour Intensity Eg. Robotics driven manufacturing

5 HOW OTHER COUNTRIES HAVE ACHIEVED MANUFACTURING LED GROWTH

6 SME based traditional manufacturing: Germany Mittelstadt Small town in Germany SME hub of Germany 99% classical industrial era companies Provides 60% of employment in Germany No nanotechnology, no biotechnology, no ICT just plain vanilla old tech companies Most companies in Mittelstadt have no Bank loans Up to 500 employees and Annual Saes of up to 50 million Euros Stability and not growth is the focus does not supply large customers more than 10% of sales! Risk mitigation

7 Innovation driven manufacturing growth: Sweden, Finland Robust linkages between Industry ad Academics Great facility for prototyping, test sites and demonstration Challenge driven R&D and Innovation leading to High Tech manufacturing Leveraging public R&D spending for Innovation Involvement of end-users early in the process Increased demand for cross collaborations Open processes

8 Start up led manufacturing growth: Israel Israel is a start up nation. Produces more start ups than Japan, China, India, Korea, Canada and UK Attracts 30 times more venture capital investment than Europe Attracts twice as much venture capital investment per person than the US It has more tech companies on NASDAQ, a tech oriented stock exchange than all of Europe, India and China put together A recent survey published in Ivey Business journal reports that while high tech proliferates in Israel traditional industries are R&D averse. 57 % of such firms operate in low tech and medium tech and do not have any R&D division, 20% do not invest in any R&D, and 25% have no R&D personnel. This disparity has been acknowledged in the comprehensive Israel 2028 policy report which advocates a dual economy. Innovation is also acknowledged as a stimulus of economic growth OCS

9 Mixed industry cluster based approach: France Competitiveness Clusters 71 clusters in biotechnologies, materials, energies, chemistry, aeronautics, electronics, pharmacy... Targeting identified markets 3 types of partners : industry, public research and higher education CARNOT 34 public research institutes showing significant interactions with industry full time staff PhD students

10 Model for India Both Low tech, high labour and high tech high labour to create ripple effects in both directions Creating space for SME Defence production, niche technology capability, Design capability Barriers to entry Promoting Cluster Development Tech Innovation driven, start up driven Need a framework for government financing and advising start-ups and SMEs with provision for equity stake in return. Need an entity with new rules and practices Need new practices and rules of audit Culture of Innovation and Entrepreneurship in Colleges, Institutes and Universities R&D institutions Industry Leveraging R&D base for tech development and innovation Need an organization that liaises with S&T as well as Industry including start-ups, SMEs and large firms. Competitive funding schemes PPP

11 ISSUES AND CONDITIONS

12 Culture of Entrepreneurship Conformist education system is it killing creativity, spirit of innovation and risk taking ability in our kids Easy availability of initial risk capital Availability, Advocacy, Red tape and time Established eco system to enable businesses to focus only on the big idea

13 Many state governments are Business friendly instead on being Market friendly Land occupies our Make in India mind space Where is research and innovation? Are we just trying to leverage the demographic dividend wrt to labour and not wrt to the mind power Where is engineering equipment design and manufacturing? Where are the technology mentors / the technology solution providers Is it time for an Indian Bayh Dole Act?

14 Government still has a big role. Overhaul the higher education system and bring it in line with a national innovation system with seamless transfer of knowledge and technology National challenges? Expert Career Path in All organizations having anything to do with Innovation and Research Advocacy

15 Thank You