FICCI has suggested a three-pronged approach to take India's R&D efforts to a higher trajectory. The strategy should be to re-orient the national science and technology policy which is output-driven, connect knowledge generation to wealth creation and problem solving and follow a venture funding model for private sector projects, particularly for SMEs, it said.
Presenting a set of suggestions to policy makers, Ms Naina Lal Kidwai, president, FICCI, said such a strategy would raise India's share in the global research output, increase private sector R&D spending and raise the country's overall spend on scientific and technological R&D from the current level of 0.98 per cent of GDP.
She pointed out that the results of an output-driven policy should be measured by the amount of patents filed, number of entrepreneurs created and the export volumes realised through new innovative products.
India's public spend in R&D is less than the current average expenditure of China, South Korea and most Western countries. Ms Kidwai has suggested that the government should stick to its commitment for a steady increase in budget outlay for R&D and double the current investments over next 5-8 years.
Furthermore, India's private sector investment in R&D is less than 25 per cent of overall R&D spend, Ms Kidwai said and emphasised that the government should create an aggressive policy environment for boosting private sector investment in R&D.