Transcript Slide 1

The New Face of Global R&D
India: An Emerging Knowledge
Hub
Vivek Pandit
Deputy Director, FICCI
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21st Century and Beyond
 We live in a Globalized World
 We live in a Competitive World
 We live in a World Driven By Technology
 What is Cooperation in a Competitive World?
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Science and Technology System
India: Robust R&D infrastructure
State
Government
Robust research infrastructure
→ 2,900 research centres
→ 400 state run labs, 380 universities
→ CSIR, IITs, IISc and NITs to
collaborate
Independent
Research
Institutes
In-House
R&D in Private
Industry
S&T System
In India
Some examples of MNCs that have
partnered with Indian institutes:
→ Hewlett Packard (HP) – IIT Chennai &
IISc
→ GM – IISc
→ Intel – IIT Mumbai
→ IBM – All IITs, C-DAC, IIITs, IISc
→ TI – IISc and IITs
Central
Socio-Economic
Ministry
S&T in
NGOs
Central Govt.
S&T Depts.
Biotech
Source: DIPP, Internet news flow, DST
Space
Atomic
Energy
DST
Science,
Industrial
Research
Ocean
Development
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Department of Science & Technology
Department of Science & Technology (DST) was established in May 1971 with the
objective of promoting new areas of Science & Technology and to play the role of a
nodal department for organising, coordinating and promoting S&T activities in the
country. The DST has the major responsibilities for specific projects and programmes
as listed below:
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Formulation of policy statements and guidelines on science and technology; and
coordination of areas of science and technology, in which a number of institutions
and departments have interests and capabilities,
Support to basic and applied research in national institutions throughout the country
and provision of minimum infrastructural facilities for testing and instrumentation;
Support to critical technology programmes;
Support to autonomous research institutions, whose specialization range from
advanced medical research, materials to astronomy;
Fostering international cooperation and establishment of special joint
centres/projects like International Advanced Research Centre for Powder Metallurgy
and New Materials, lndo-French Centre, NAM S&T Centre and lndo-Uzbek Centre;
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Department of Science & Technology (Cont..)
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Support socially oriented S&T interventions for rural areas and weaker sections;
Support entrepreneurship development to create self-employment opportunities,
especially for those with science and technology background;
Popularization of science and technology;
Providing scientific services in terms of surveying and maps for Defence, External
Affairs, State Governments and several other developmental agencies through Survey of
India (SOI) and National Atlas and Thematic Mapping Organisation (NATMO);
Providing meteorological services for Agriculture, Water Resources Management
Disaster Warning, Civil Aviation as well as providing seismicity data through India
Meteorological Department (IMD); and
Management of Information Systems for Science and Technology and Coordination
thereof.
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Department of Scientific & Industrial Research
(DSIR)
Department of Scientific & Industrial Research (DSIR) is the nodal
department with primary endeavour to
 Promote R&D by industries
 Support SMEs to develop state-of-the art globally competitive technologies with
commercial potential
 Catalyze faster commercialization of lab-scale R&D
 Enhance the share of technology intensive exports vis-à-vis total exports
 Strengthen industrial consultancy and technology management
 Establish user friendly information network to facilitate research
 Provides link between labs and industrial establishments for Transfer of Technology
through National Research Development Corporation (NRDC)
 Facilitate investment through Central Electronics Limited (CEL)
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High Technology Research in
India
Centres for High Technology Research
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ARCI (International Advanced Research Centre for Powder Metallurgy & New
Materials)- Hyderabad
– Thrust Areas
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Surface Engineering
Laser Processing
Ceramics
Powder Metallurgy
National Physical Laboratory(NPL)-New Delhi
– Thrust Areas
–
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Standards
Apex Level Calibration
Engineering Materials
Electronic Materials
Materials Characterization
Radio & Space Physics
Low Temperature Physics
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Centres for High Technology Research
• NCL (National Chemical Laboratory)- Pune
– Thrust Areas
• Biochemical Sciences
• Chemical Engg. Sciences
• Nano material Science & Technology
• C-DAC (Center for Development of Advanced Computing)-Pune
– Thrust Areas
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VLSI Design
Multiprocessor System Design
High Performance Networks
Digital Libraries
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Centres for High Technology Research
• TIFR (Tata Institute of Fundamental Research)- Mumbai
– Thrust Areas
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Astronomy & Astrophysics
Condensed Matter Physics
High Energy Physics
Nuclear and Atomic Physics
Molecular Biology
• ISRO (India Space Research Organisation)
– Thrust Areas
• Space Science
• Space Technolgy
• Space Application (Remote Sensing of earth’s resources, Space
communication,Satellite Meteorology including weather forecasting, Space
Education & Ecology
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Centres for High Technology Research
•
CCMB (Centre for Cellular and Molecular Biology)- Hyderabad
– Thrust Areas
• Application oriented research towards commercialization
• Research relevant to Societal needs
– DNA Fingerprinting, Gene delivery, Drug Delivery Systems
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CDRI (Central Drug Research Institute)- Lucknow
– Thrust Areas
• Research activities aimed at developing Drugs, Diagnostics/ Vaccines to cure and get rid
of ailments confronted by mankind
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IGCAR (Indira Gandhi Centre for Atomic Research)- Kalpakkam
– Thrust Areas
• Multidisciplinary Programme for development of Sodium cooled Fast Breeder Reactor
(FBR) Technology
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IISC (Indian Institute of Science)- Bangalore
– A premier institution of research and advanced instruction, with more than 2000 active researchers
working in almost all frontier areas of science and technology.
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India is emerging as a global
R&D hub?
R&D Drivers in India
Abundant talent, low cost and strong research infrastructure drive R&D in India
Abundant
Talent Pool
Robust R&D
Infrastructure
India’s
Value
Proposition
Source: Evalueserve analysis
Research at Competitive Costs
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The government has extended its support to
R&D through favorable regulations
Earlier
→Lack of Intellectual Property Protection
→MNCs were restricted from undertaking
research on New Chemical Entities (NCE)
in India
→Good Clinical Practices (GCP)
compliance was not mandatory
→The government had imposed high
customs duties on the import of clinical trial
samples
→Schedule Y and the resultant ‘phase lag’
–Permission for clinical trials given for one
phase behind the status in rest of world
–Only limited trials on about 100 patients
required for new drug introduction
Now
→India has adopted the IP regime
formulated by the WTO in 2005
→These regulations have been relaxed
– Leading MNCs such as Pfizer and
Eli Lilly have started research on
NCEs in India
→Adherence to GCP guidelines has been
made mandatory since December 2001
→Custom duties on clinical trial samples
has been waived
– The government is also offering
other financial incentives for R&D
investment
→Proposed amendment to Schedule Y
allowing parallel phase clinical trials in
India
…times are changing, with the Indian industry academia and government actively
engaged in facilitating the optimal environment to establish India as a global R&D hub
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Advantage India: Talent from premier institutes
Nearly 50% of present R&D workforce in the US will become eligible for retirement by
2012 according to the Bureau of Labor Statistics
Highly skilled work force
Indians comprise
→ 380 universities and 11,200 higher
education institutions
→ 6,000 PhDs and 200,000 engineers,
300,000 science graduates and post
graduates annually
→ Indian youth has greatest interest in
Science and Technology
→ Nine Indians among top 100 young
innovators of 2004 identified by MIT’s
Technology Review Magazine
→ IITs, IISc and NITs feature among the
world’s best institutes
→
→
→
→
→
Source: Department of Industrial Policy and Promotion (DIPP), Internet
news flow, DaVinci Institute, IMD World Competitiveness Yearbook 2003
38% of the doctors in the US
12% of the scientists in the US
36% of the scientists at NASA
34% of the employees at Microsoft
20% of the scientists at Intel
“My visits to India convinced me that research
laboratories there were filled with scientists equal
to or better than those in the US — and in a lot
more disciplines than software.”
Jack Welch, Ex-CEO GE, ‘Straight from the Gut‘
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Advantage India: Low cost of research
→ Salary and overheads account for 60% of research cost in
the US
→ Cost of a researcher in India is one-fifth of that in the US
→ Savings of 40-50% over the US cost base
Cost of Clinical Research – India vis-à-vis the US
Compensation of a chip designer (master’s
degree and five years experience)
Average US
Cost (in million
USD)
India Cost
Phase I
20
50% less
Phase II
50
60% less
Phase III
100
60% less
Study
US
USD
7000/month
India
USD 1500/month
Source: Evalueserve analysis, Business Line, R&D Magazine
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Emergence of India:
Potential Destination for R&D
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R&D Investment in India 6.8
7
5
4
3
USD Billion
6
3.2
 R&D investment has reached USD 6.8bn in 2004
2.2
2
1
0
1997
 R&D investment in India has grown at a CAGR
(Compounded Annual Growth Rate) of 45% over
2002-2004 and is likely to remain over 40% in the
coming years
Year
2002
2004
 Global survey by London based Economist
Intelligence Unit positioned India as the third most
favorable destination for R&D investments
85% of the R&D is carried out by the government through its research labs and PSUs
Health – ICMR
ICMR has a network of 21 permanent research institutes
and 6 regional medical research centers
Space – ISRO
ISRO has established INSAT space system for
telecommunications and developed satellite launch
vehicles PSLV and GSLV
Defense – DRDO
DRDO has 51 laboratories with 5000 scientists and 25000
technical and supporting personnel
Energy – ONGC
ONGC has nine R&D institutes in India with the Keshav
Dev Malaviya Institute of Petroleum Exploration in Dehra
Dun being the premier institute among them
Source: Evalueserve analysis, Da Vinci Institute, Ministry of Science and Technology
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The developed world can carry out
Cost-competitive cutting edge research in India
MNC presence in the R&D sector is increasing with over 150 MNC research setups/partnerships
MNC R&D
Pattern
R&D Centers
(LG,
Samsung, IBM Research Center)
R&D Alliances
with other
Indian companies
(Suzuki – Maruti
DuPont- Reliance)
Contract Research
to Pvt Labs, Govt
Labs and Univs.
(Samsung-IITD)
Area of expertise
→
→
→
→
→
High Tech/Electronics
Telecom and IT
Chemicals
Pharmaceuticals
Consumer Durables
Typical Functions
→
→
→
→
→
Chip and Electronic devices Design
Software and elements of hardware
Agri-products and petrochemicals
Development for India, clinical trials
Electronic goods, control devices
Source: Evalueserve analysis of internet news flow
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The developed world can carry out Costcompetitive cutting edge research in India
 Philips Innovation Centre
 Research on DVD players, Digital television, video decoders
 Patent search team to come up with new ideas and patent them
 Intel Research Lab
 Design of Xeon chip
 AMD R&D Centre
 Design of 64-bit chip
 Daimler Chrysler in collaboration with Central Salt and Marine Chemicals Research
Institute
 Bio-diesel extracted from the Jatropha plant
 Texas Instruments R&D Centre
 Design of Wireless LAN chipset, Development of 3G Wireless chipset
 Alcatel in Collaboration with Indian Centre for Development of Telematics
 Broadband Wireless technology
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The developing world can benefit from
India’s high quality research output
Research in food and agriculture ensures:
Economic development of rural areas
Increased productivity for global food security
Better nutrition for low income groups
→ Technology for Milk distribution and rural areas by VPIIT
→Smartcard system for milk cooperatives and micro fund groups
→ Salinity Resistance Rice at MSSRF
→One-third of India’s rice crop and nearly 9 million hectares of cultivable land is
affected by salinity. FAO study shows that 15% of agricultural land globally will turn
saline by 2025
→ Improving ‘Drought Resistivity’ of plants at Laboratory of Bacterial Genetics
→New bacterial compound ‘Betaine’ that helps plants cope with drought and reduces
crop failure
→ GM ‘Golden Peanut’ at ICRISAT
→Resistant to peanut clump virus (PCV) and has increased levels of vitamin A (betacarotene)
Source: Evalueserve analysis of internet news flow, Outlook
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The developing world can benefit from
India’s High Quality Research Output
Research in healthcare ensures:
Improved health at affordable prices
Increased life expectancy for developing countries
Better handling pandemic killers such as TB and Malaria
→ Anti TB ‘Sudoterb’ by Lupin Pharma
→New drug formulation for TB germs reducing treatment period from 7 months to just 2
months, with decreased toxicity
→ Malaria Research at TIFR
→Research towards development of a vaccine for the disease
→ Hepatitis B Vaccine by National Institute of Immunology, Shanta Biotech
→Relief from Hepatitis to millions at low cost
→ Stem Cell Research
→Applications in heart, eye, pancreas, liver, kidney diseases and spinal injury
→Heart restoration with an increase of pumping efficiency up to 40%
Source: Evalueserve analysis of internet news flow, Outlook
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The developing world can benefit from
India’s High Quality Research Output
Research in alternate energy ensures:
Global energy security and income generation opportunities for
millions
Improved quality of life in the developing world
Clean pollution-free environment
Source: Evalueserve analysis of internet news flow, Outlook
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NCR, Bangalore, Mumbai, Pune and Hyderabad
are the established R&D clusters
Location
MNCs
Bangalore
IISc, LG Electronics,
GE, TI, Akzo Nobel,
Delphi, GM, Daimler
Chrysler, Philips,, Intel,
Hewlett Packard
NCR
Mumbai
ICMR, IITD, Adobe
Systems, AVL, Eli Lilly,
Ericsson
TIFR, IITB, Bayer AG,
Clariant, Colgate
Palmolive, Johnson
and Johnson, Pfizer,
Siemens, Roche
Hyderabad
DERL, NGRI, Microsoft,
Oracle
Pune
NCL, CIRT, Cummins,
Whirlpool
New Delhi-Gurgaon-Noida
Mumbai
Pune
Hyderabad
Bangalore
Established
R&D Hubs
Source: Evalueserve analysis of press reports, CSIR
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R&D Incentives and Subsidies
Department of Scientific & Industrial Research
(DSIR)
The above objectives are sought to be achieved through
the following during Tenth Plan (2002-07):
 Technology Promotion, Development and Utilization
(TPDU) Programmes
 National
(NRDC)
Research
Development
Corporation
 Central Electronics Limited (CEL)
 Council of Scientific and Industrial Research (CSIR)
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Department of Scientific & Industrial ResearchTPDU
The activity pertaining to Industrial R&D Promotion programme is an important component of
DSIR plan Scheme “Technology Promotion, Development and Utilization (TPDU) Programmes”
The main objectives of the scheme are:
To promote innovation by sharing risk with innovators
To forge industry- institute cooperation
To strengthen the National Innovation capability
Towards achieving the above objectives the department provides partial financial support to New
Product/ Process Development projects undertaken by the industry. So far for over 140 projects
costing a total of USD 18 million. DSIR has contributed USD 7 million.
The projects relate to :
Electrical, Electronics, Semiconductors, Telecommunications, Embedded Software,
Instrumentation, Mechanical engineering, Metallurgy, Earth moving and Industrial Machinery,
Chemicals, Drugs, Pharmaceuticals and Explosives
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Department of Scientific & Industrial ResearchTPDU
Major Activities under the Scheme are
 Recognition to In-house R&D units established by corporate Industry
 Recognition to non-commercial Scientific and Industrial Research
Organizations (SIROs)
 Registration to Public Funded Research Institutions, universities,and others
like IIT’s, IISc, Regional Engineering College (RECs) etc.
 Fiscal Incentives for Scientific Research administered by DSIR
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Fiscal Incentives
Fiscal Incentives for Scientific Research administered by DSIR
Approval of In-house R&D centres under section 35(2AB) of I.T. Act 1961
Approval of Commercial R&D companies
Central Excise Duty Waiver for Patented Products
Accelerated depreciation allowance on plant and machinery Setup based on
indigenous technology
Customs Duty Exemption to recognized SIRO
Excise duty Exemption to recognized SIROs
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Other Fiscal Incentives
Other Fiscal incentives administered by respective agencies:
 100% write-off of revenue expenditure and capital expenditure on R&D under section
35(1)(i) and 35(1)(iv) of IT Act 1961 by the Income tax Deptt.
 Customs duty exemption for industry as well as R&D on specified goods (comprising
of analytical & specialty equipment) for use in pharmaceutical and biotechnology
sector for DSIR recognized units
 Custom duty exemption on imports for R&D projects supported by Government to the
extent of Government support for industries with in-house R&D units recognized by
DSIR
 Weighted tax deductions @125% for sponsored research to institutions specified
under section 35 (2AA) of IT Act 1961
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Indo-Italian R&D partnership
Both India and Italy are gaining through the exchange of
R&D expertise
Benefits of the Collaboration
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Exchange of research facilities
Joint Technology Development
Establishment of Joint Research Centre
Research Fellowships to be offered in
Advanced technology sectors like
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Nanoscience and technology,
Bio-informatics,
Neuro-informatics,
Web and multi-media technologies,
Grid technologies,
Electronics,
Aerospace engineering
Research on natural Catastrophes
 Doubling of present level of Research
India- Torento program for Advanced Research
(ITPAR )
 ITPAR Work plan 2003-2006 was launched July
2003 at Torento with better co-funding
opportunities
 Stable funding from India and Italian
Governments
 There have been 4 ITPAR Projects of duration
3 years costing USD 780,000
 Projects relate to
 Design development of prototype of inertial & Flow
sensors with IIT Khargpur
 Fabrication protocol for growing metallic and semiconducting nano-particles in glassy matrix for photonic
applications with University of Hyderabad
 Development of technologies to convert low-resolution
remote sensed images to high spatial resolution for
quantifying and monitoring natural resources with IIT
Mumbai & ISI
 Integration of formal verification techniques in software
development for bussiness process analysis,
information security policy analysis with TIFR
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Future directions for intensified Indo- Italian S&T
Cooperation
There is potential for enhanced networking of academic research
laboratories and industrial R&D entities under the new IndiaItaly S&T Agreement and co-funding bilateral S&T initiatives of
relevance in areas of
 Organic semiconductors and display devices
 Design Technology- Engine design of 2-3 wheelers;
• vehicle styling and design;
• LPG based technology for motor vehicles
• Augmenting SMEs capacity in product & process innovation for automobile components
 Enhancing use of bilateral contacts particularly those of Italian partners bidding EC funding
for increased cooperation with EU Partners
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Future directions for intensified Indo- Italian S&T
Cooperation
– Joint research programmes:
Material Characterization to understand fast photo physics
influencing degradation of organic semiconductors, based
on femtosecond spectroscopies
Development of materials and devise structures for
displays, TFTs , Sensors and Photo- voltaics
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FICCI: India R&D 2005
Global Conference & Exhibition
Conference:
India R&D 2005- The World’s Knowledge Hub of the
Future
Date:
November 7-8, 2005
Venue:
Vigyan Bhawan, New Delhi
Collaboration:
Departments of Science & Technology and Industrial
Policy and Promotion, Government of India
Council for Scientific and Industrial Research,
Government of India
Knowledge Partner
Evalueserve
Dr A P J Abdul Kalam,
Hon’ble President Of India
has agreed to Inaugurate the
Conference on November 7, 2005
India R&D 2005 aims at attracting MNCs to set up
R&D centres in India
The conference will cover sessions on a variety of topics…
Three Plenary Sessions:
→ India – the World's Knowledge Hub of
the Future
–
Chair: Mr Kapil Sibal, Minister of State
(Independent Change) for Science &
Technology, Government of India
→ Nurturing Innovation – Creating the
Right Culture
–
Chair: Mr Ajay Dua, Secretary, DIPP,
Government of India
→ Capacity Building – Infrastructure &
Human Resource
–
Chair: Prof. V S Ramamurthy,
Secretary DST, Government of India
Six Technical Sessions:
→ Pharma & Biotechnology –
Breakthrough for the Masses
→ Automotive & Transportation Sectors –
The Engineering Design Highway
→ IT & Communication – Reinventing
India
→ Energy – Alternate Solutions for India's
Needs
→ Space Research & Societal Needs
→ Nanotechnology
An Exhibition showcasing the
latest achievements in Science
and Technology to be organised
concurrently.
Vivek Pandit
[email protected]
Thank You…