Transcript Document

Internationalization of R&D (IRD)
Dr A R Kidwai
Member of Parliament (Upper House)
India
INDIA’S S& T POLICY ON
INTERNATIONALIZATION OF R&D
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TO PROMOTE INTERNATIONAL SCIENCE AND
TECHNOLOGY COOPERATION TOWARDS
ACHIEVING THE GOALS OF NATIONAL
DEVELOPMENT AND SECURITY AND MAKE IT A
KEY ELEMENT OF INTERNATIONAL RELATIONS.
SCIENTIFIC RESEARCH AND TECHNOLOGICAL
DEVELOPMENT CAN BENEFIT GREATLY BY
INTERNATIONAL COOPERATION AND
COLLABORATION.
INTERNATIONALIZATION TREND IN
GLOBALISING R&D
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R&D SPENDING ABROAD BY US AND OTHER
DEVELOPED COUNTRIES RISING FASTER THAN
DOMESTIC SPENDING. IBM AND HEWLETTPACKARD SPENDING 30% ON R&D OUTSIDE USA.
100 FOREIGN COMPANIES OF JAPAN, GERMANY,
UK, FRANCE AND SOUTH KOREA HAVE ABOUT 250
R&D FACILITIES IN USA.
MORE THAN 100 R&D CENTERS SET UP IN INDIA BY
MNCs.
Cont.//
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EMPHASIS NOW SHIFTING TO EXTERNAL
TECHNOLOGY ACQUISITION TO COMPLEMENT
INTERNAL EFFORTS.
FOR SUCCESS IN GLOBAL MARKET THE MOST
IMPORTANT FACTOR IS TECHNICAL SKILLS TO
PRODUCE SUPERIOR PRODUCTS AT
COMPETITIVE RATES.
CONVENIENT MECHANISM FOR TECHNOLOGY
TRANSFER INSIDE AND ACROSS COUNTRIES.
FREE AND FLEXIBLE MOVEMENT OF R&D
PERSONNEL.
Cont.//
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SUITABLE TAXATION AND RELATED
ARRANGEMENTS IN RESPECT OF R&D.
SUITABLE/APPROPRIATE LEGAL FRAMEWORK
FOR FACILITATING COLLABORATIVE R&D AND
DISPUTE SETTLEMENT.
INDIA’S S&T AGREEMENT
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S&T AGREEMENTS WITH MORE THAN 50 COUNTRIES.
S&T AND IPR AGREEMENTS WITH FRANCE, EU AND
RUSSIAN FEDERATION.
JOINT R&D PROGRAMS ON MATERIAL SCIENCE,
CELLULAR AND MOLECULAR BIOLOGY.
LASER AND ELECTRO-OPTICS
INFORMATION TECHNOLOGY
MEDICAL SCIENCES AND HUMAN GENOME RESEARH.
GEOPHYSICES
WHY R&D ALLIANCE WITH INDIA ?
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US GIANT GE HAS A LARGE R&D SET UP IN
INDIA. IT’S CEO OBSERVED
“INDIA IS A DEVELOPING COUNTRY, BUT IT
IS DEVELOPED COUNTRY AS REGARDS ITS
SUPERB SCIENTIFICINFRASTRUCTURE. IT IS
FOR THIS RERASON THAT WE WANT TO
SHIFT A PART OF GE’S DEVELOPMENT
EFFORT TO INDIA”.
LOW COST OF R&D.
Cont.//
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INDIA IS THE SECOND LARGEST WORLD
MARKET. TEHREFORE, THE COMPANIES
THROUGH THEIR PRODUCTS SALE EARN MORE
THAN WHAT IS SPENT BY THEM ON R&D AND
THEIR PRODUCTION CENTER IN INIDA.
INDIA ALLOW FOREIGN INVESTORS 100%
FOREIGN OWNERSHIP AND FULL REPATRIATION
OF CAPITAL AND PROFITS.
INDIA HAS ALSO ACCEPTED R&D PROGRAMS
UNDER THE CHAPTER ON TRADE IN SERVICES
OF WTO.
Cont.//
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INDIA HAS A LARGE POOL OF ENGLISH
SPEAKING SKILLED MANPOWER.
INDIA’S TELECOM INFRASTRUCTURE IS
COMPARABLE TO THAT IN MANY
COUNTRIES.
INDIA’S GEOGRAPHICAL LOCATION
ENABLES 24X7 SERVICE OFFERING.
GOOD REGULATORY FRAMEWORK.
MORE THAN 100 R&D CENTERS SET UP IN
INDIA BY MNCs.
R&D ORGAINZATIONS
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2.
3.
ORGANIZATION
NUMBER
CSIR
LABS AND RES.
118
SCIENTISTS 10, 934
43
89
SCIENTISTS 6,281
26
SCIENTISTS 732
ICAR
AGRI. UNIV.
R&D INST.
ICMR
R&D INST./CENT.
STRENGTH
Cont.//
4.
5.
6
7.
DBT
R&D INST.
DRDO
R&D INST.
DAE.
R&D INST.
DOS
ISRO
8
SCIENTISTS 700
52
SCIENTISTS 6,500
17
SCIENTISTS 5,000
SCIENTISTS
10,000
INSTITUTIONS OF HIGER EDUCATION (2001)
1.
2.
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HIGHER EDUCATION NUMBER STRENGTH
UNIVERSITIES
253
FACULTY 411,628
COLLEGES
13,150
STUDENTS 8,399,433
SC STUDENTS 1,670,273
ENGINEERING EDUCATION
HIGHER EDUCATION &RES.
IITs
7
FACULTY
2,500
STUDENTS 23,000
ENGG.COLLEGES
STUDENTS 463,965
DEGREE
1347
DEGREE
262,882
DIPLOMA
1228
DIPLOMA 201,093
Cont.//
3.
MEDICAL EDUCATION
MEDICAL COLLEGES 189 STUDENTS 18,168
PG STUDENTS
3,181
PG DIPLOMA
1,316
INDIAN SOFTWARE INDUSTRY
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EXPORT EARNINGS IN 2003-04 US $ 12.7 BILLION
GROWTH RATE 26% DESPITE SLOWDOWN.
EXPORTS TO 95 COUNTRIES. MAJOR COUNTRIES:
USA, UK, GERMANY, FRANCE, JAPAN, CHINA
HONKONG, TAIWAN AND SOUTH KOREA.
THE CLIENTS INCLUDE MORE THAN 250 OF
FORTUNE 500 COMPANIES.
ESTIMATED EXPORTS FOR 2008
SERVICES
US $ IN BILLION
__________________________________________
IT SERVICES
23
SOFTWARE PRODUCTS
8
IT-ENABLED SERVICES
15
E-BUSINESS
4
TOTAL
50
Cont..//
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The above data shows how development
of software industry in India has greatly
contributed to promotion of specialized
services in sectors of finance, banking
solutions, security knowledge,
management and customer relation
services where expertise is sought from
India by overseas countries.
SOTWARE ADVANTAGE INDIA
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LOW COST QUALITY MANPOWER
HIGH QUALITY WORK DELIVERY.
WELL-DEVELOPED INFRASTRUCTURE
SUPPORT TO AID CONNECTIVITY AND
DATA TRANSFER.
GROWTH OF INFORMATION TECHNOLOGY
ENABLED SERVICES (ITES)
INDIAN PHARMA POLICY- 2002
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100% FOREIGN INVESTMENT AUTOMATICALLY
PERMITTED.
FOREIGN TECHNLOGY AGREEMENTSAUTOMATIC APPROVAL THROUGH RESERVE
BANK OF INDIA.
ABOLITION OF INDUSTRIAL LICENSING FOR
ALL BULK DRUGS, INERMEDIARIES AND
FORMULATIONS.
Cont.//
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DRUG CONTROL RESTRICTED ONLY TO
ESSENTIAL DRUGS TO DEAL WITH
DISEASES LIKE TB, MALARIA AND
DIABETES (INSULIN).
THE ONLY EXCEPTION—THE DRUGS
BASED ON DNA TECHNOLOGY HAVE TO BE
CLEARED FOR POTENTIAL HEALTH AND
ENVIRONMENTAL RISKS.
EMERGING TRENDS
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FOREIGN DIRECT INVESTMENT (FDI) PERMITTED
UP TO 100% THROUGH AUTOMATIC ROUTES.
INDIA AGREED TO IMPLEMENT A PRODUCT
PATENT REGIME WITH EFFECT FROM 1ST
JUANUARY 2005 AS PER WTO AGREEMENT.
MNCs HAVE STARTED STRENGTHENING THEIR
BUSINESS IN INDIA. THEY HAVE INCREASED
STAKES IN EXISTING VENTURES OR SET UP NEW
WHOLLY OWNED SUBSIDIARIES (e.g. PFIZER)
Cont.//
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INCREASED FOCUS BY INDIAN PHARMA
COMPANIES ON R&D.
R&D CAN BE PERFORMED IN INDIA AT 15-20%
OF THE COST IN EUROPE OR USA. ON DOLLAR
BASIS THE COST ADVANTAGE IS ABOUT 10-15
TIMES.
THE INDIAN COMPANIES ARE PURSUING
CONTRACT MANUFACTURING FOR SUPPLY OF
BULK DRUGS/INTERMEDIATES FOR MNCs.
Cont.//
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WITH LOW COST OF PRODUCTION, INDIA
HAS BECOME A BASE FOR OUTSOURCING
DRUGS.
INDIAN COMPANIES SETTING UP
SUBSIDARIES ABROAD OR SEEKING
STRATEGIC ALLIANCES TO EXPLORE
TREMENDOUS OPPURTUNITIES IN THE
GENERICS MARKET EXPECTED IN THE NEXT
5-10 YEARS.
INDIA--A GLOBAL HUB FOR TESTING
AND DEVELOPMENT OF NEW DRUGS
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PHARMA INDUSTRY TODAY TAKES $300-700
MILLION AND 10-15 YEARS TO INTRODUCE A
NEW DRUG IN THE MARKET.
A LARGE POOL OF WELL QUALIFIED AND
SKILLED MANPOWER AVAILABLE AT LOW COST.
AVAILABILITY OF LARGE NUMBER OF PATIENTS
WITH ALL FORMS OF DISEASES.
ALSO PATIENTS AVAILABLE WHO HAVE NOT
RECEIVED ANY OTHER MEDICAL TREATMENT.
Cont.//
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CLINICAL TRIALS COST HALF OR ONE THIRD
OF A DEVELOPED COUNTRY AND TAKES MUCH
LESS TIME TO COMLETE.
REGULATIONS PERMIT TESTING OF NEW
DRUGS WITH NECESSARY PROTECTIVE
MEASURES.
BIOTECHNOLOGY IN INDIA
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SKILLED MANPOWER
GRADUATES
3,000,000
POST-GRADUATES
70,000
Ph.Ds
1,500
CONVENTIONAL BIOTECH. COMPANIES 110
MODERN BIOTECH. COMPANIES
60
BIOTECH ASSOCIATED INSTITUTIONS
RESEARCH INSTITUTEIONS
241
INDUSTRIES
328
Cont.//
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CONSUMPTION OF BIOTECH.
PRODUCTS IN 1999
PROJECTED CONSUMPTION IN 2005
PROJECTED CONSUMPTION IN 2010
US $ 1.79 BN.
US $ 3.72 BN.
US $ 4.27 BN.
MAIN ACTITIVITES AND POTENTIAL
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RICH BIODIVERSITY-INDIA HAS 7.76% OF TOTAL
MAMMAL SPECIES 12.6% OF BIRD SPECIES,
11.7% OF FISH AND ROUGHLY 6.0% OF TOTAL
FLOWERING PLANTS PRESENT IN THE WORLD
WITH EXCELLENT AGRO-CLIMATIC
CONDITIONS. THIS IS A GREAT RESOURCE FOR
RESEARCH AND DEVLOPMENTAL ACTIVITIES
IN BIOTECHNOLOGY.
FOCUS– GENOMICS, RECOMBINANT DNA,
TRANSGENICS. STEM CELL RESEARCH AND
NEW DRUGS DEVELOPMENT.
Cont.//
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VACCINE
MARKET
VALUED
GROWTH
RATE
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DIAGNOSTICS
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ANIMAL HEALTH
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ENZYMES
AROUND US $ 100 Mn.
20%
MARKET DEMAND US $ 50 Mn.
DEMAND GROWING RAPIDLY
BIOTECHNOLOGY MARKET
RAPIDLY GROWING
70% REQUIREMENT IMPORTED
MARKET GROWING WITH
INCREASING AWARENESS
Cont.//
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PHARMA
INDUSTRY
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FERMENTATION
INDUSTRY
TODAY 40-45% OF ALL DRUG ORIGINATE
IN BIO-TECHNOLOGY BUT IN THE NEXT
DECADES BIOTECHNOLOGY WILL HAVE
A MUCH GREATER ROLE ON THE PRODUCTION OF DRUGS AND PHARMACUETCALS.
MODEST FERMENTATAION INDUSTRY
MAINLY BREWERIE,
ANTIBIOTICS AND CHEMICALS
BUT GREAT POTENTIAL IN THE
AREAS OF –FOOD PROCESING,
PHARMA AND CHEMICALS.
Cont.//
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FOOD
PROCESSING
INDUSTRY
INDIA IS THE LARGEST PRODUCER
OF MILK AND SECOND LARGEST
PROCUCER OF FRUITS, VEGETABLES
AND FOODGRAINS. BUT PROCESSING
IS LIMITED TO ONLY 2% OF FRUITS AND
VEGETABLES AND 15% MILK. THUS,
TREMENDOUS SCOPE FOR THE
DEVELOPMENT OF PROCESSING OF MILK
FRUITS &VEGETABLES, MEAT, FISH AND
FOODGRAINS
Cont.//
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AGRI-BIOTECH.
-GENETICALLY ENGINEERED
SEEDS AND PLANTS HAVE A
MARKET OF US $ 250 Mn..
-DEVELOPMENT OF TRANSGENICS
FOR QUALITY AND CHARACTERS.
-DEVELOPMENT OF TRANSGENICS
WITH RESISTANCE TO DROUGHT
AND OTHER ABIOTIC STRESSES.
-TISSUE CULTURE FOR
PROPAGATION OF PLANTS.
-DEVELOPMENT OF MEDICINAL AND
OTHER AROMATIC PLANTS.
ADVANTAGE INDIA
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NO INDUSTRIAL LICENCE REQUIRED FOR FOODS
EXCEPT ALCHOHLIC PRODUCTS.
NATIONAL POLICY TO INCREASE FOOD PROCESSING
FROM PRESENT 2% TO 10% BY 2010.
INVESTMENT OPPORTUNITIES:
UPTO 51% FOREIGN EQUITY—AUTOMATIC APPROVAL.
UPTO 100% EQUITY ALLOWED ON APPROVAL UNDER
FOREIGN DIRECT INVESTMENT (FDI) SCHEME EXCEPT
MALTED FOOD, ALCHOHOLIC BEVERAGES.
CUSTOM DUTIES SUBSTANTIALLY REDUCED ON PLANT
AND EQUIPMENT, RAW MATERIALS AND
INTERMEDIARIES.
CHEMICALS PESICIDES AND ALLIED
INDUSTRIES
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INDIA IS SELF-SUFFICIENT IN MEETING LOCAL
DEMANDS.
CHEMICAL INDUSTRY IS HIGHLY HETEROGENIOUS
COVERING SECTORS LIKE ORGAINIC, INORGANIC
CHEMICALS, DYESTUFF, PAINTS , PESTICIDES, ETC.
THE PESTICIDE INDUSTRY HAS DEVELOPED
SUBSTANTIALLY CONTRIBUTING TOWARDS
AGRICULTURE AND HEALTH.
PETROCHEMICALS INDUSTRY
RAPID STRIDES IN TERMS OF PRODUCTION AND
CONSUMPTION
(FIGS IN KT)
CATEGORY
1997-98
1998-99
1999-2000
(Actual)
(Actual)
(Actual)
Prod. Cons. Prod Cons
Prod.
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SYNTHETIC
1246 1257 1379 1420
1525
FIBRE
POLYMER
2016 2398 2189 2719 2805
SYNTHETIC
62
105
54
106
55
RUBBER
SYNTHETIC
251
245
282
272
320
DETERGENTS
EXPORT OF CHEMICALS
STEADY GROWTH IN EXPORTS OF CHEMICALS
DURING THE LAST THREE YEARS .
1996-97
1997-98
(US $ IN MILLIONS)
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DYES AND DYE INTERMEDIATES
388.8
445.6
BASIC ORGANICS & INORGANICS
416.2
439.0
CHEMICALS INCLUDING
AGROCHEMICALS