In recent years India has emerged as a major destination for corporate research and development (R&D), especially for multinational corporations. India's domestic institutions like Indian Space Research Organisation (ISRO), Defense Research and Development Organisation (DRDO), and the Centre for Development of Advanced Computing (C-DAC) have set prestigious milestones of international standards. Not surprisingly, at Governmental levels a number of international cooperation agreements in the field of science and technology have been signed with India. After years of self-imposed seclusion, principally motivated by post-colonial India's insistence on the “development of indigenous technology,” India finally seems to have joined the global mainstream of innovation. In January 2007 the Institute of Technology and Management at Hamburg University of Technology (TUHH) launched a research project titled “India's Innovation System: Exploring the Strengths.” The one-year project was initiated in cooperation with Honolulu-based East-West Center. The aim of the project was to better understand the emergence of India as an increasingly important R&D hub for both large and medium-sized multinational firms, which in a certain sense may be regarded as curious since India is generally thought to suffer from disadvantages caused by poor infrastructural facilities, red tape and corruption. This project therefore aimed to examine, evaluate and ultimately comprehend the elements and inherent strengths and weaknesses of India's innovation system and its chances for the global economy, particularly in knowledge-intensive sectors. A preliminary field study was carried out in National Capital Region of Delhi in February 2007, by conducting 22 explorative talks/interviews. The participants included Government officials dealing with issues related to India's National Innovation System, researchers and senior level management of some publicly-funded research institutions, one representative of a major industry association and some privately-held firms. Later in summer 2007 a 6-weeks field research was conducted by the authors in the National Capital Region of Delhi, Ahmedabad, Mumbai, Pune and Bangalore. In addition to that a small number of pre-operational interviews was conducted in Germany. The authors interviewed representatives of private firms as well as Governmental/Institutional bodies (85 in total). This study is unique in the sense that it not just undertakes an extensive effort to bring out comprehensive, factual data on various components of India's innovation system - many hitherto not widely known - but also in the sense that it enables an empirical characterization of this system as perceived by various stakeholders, both domestic and foreign. Based on our research we draw the following picture concerning India's Innovation System of today: India is in the process of emerging as a major R&D hub for both large and medium-sized multinational companies in various industries. This development is mainly owing to the availability of skilled labor produced in world-class elite institutions. Cost advantages, e.g. in the form of low wages are still present but receding due to substantial wage hikes often ranging between 15 and 25% per annum. The striking finding is however about market-driven factors. Of late, India's market potential, in the meantime ranked as 3rd largest worldwide by the Global Competitiveness Report 2007-08, has emerged as a crucial driver. Rising income levels of India's billion-plus population are creating unique market opportunities for firms, both domestic and foreign. In India the Government has historically played a major and in most cases a singularly positive role in the formation of its innovation system. India, ever since its independence from British rule, has invested much time, resources and efforts in creating a knowledge society and building institutions of research and higher education. Despite explosive population growth literacy rate in India grew from 18.3% in 1950-51 to 64.8% in 2001 thanks to concerted Government efforts; female literacy rose from a mere 8.9% to 53.7% in the same period. Moreover the quality of education in India is generally ranked as very good. According to the Global Competitiveness Report 2007-08 the quality of mathematics and science education in India is ranked as 11th best in the world, much ahead of 29th placed Japan, 36th placed Germany, 45th placed United States and 46th placed United Kingdom. Nevertheless, India is faced with major challenges related to infrastructure and bureaucratic hurdles. The quality of education, notwithstanding such excellent rankings as stated above, in many institutions does not reach the standards required for (cutting-edge) R&D efforts. Moreover, a booming economy is leading to shortage of qualified and experienced skilled labor - which result in inflationary wage growth and high attrition rates, which generally lay in a double-digit range. With the Government maintaining a pro-active role many of these problems may however be expected to get resolved to a manageable extent. In its Eleventh Five Year Plan (2007-12) the Government has announced massive investments in infrastructure and education sectors to enhance both the quantity and the quality. Industrial firms in India have recognized their chances and are investing heavily in R&D capacities. India is also a beneficiary of global mobility and exchange of talents, technology and resources as much as the world, especially the developed Western countries, have profited from India's export of brain power. In sum all these developments raise hopes for a further improvement in the conditions of India's National Innovation System.

As part of its review of Comparative National Innovation Policies: Best Practice for the 21st Century, the Board on Science, Technology, and Economic Policy convened a major symposium in Washington to examine the policy changes that have contributed to India's enhanced innovative capacity. This major event, organized in cooperation with the Confederation of Indian Industry, was particularly timely given President Bush's March 2006 visit to India and the Joint Statement issued with the Indian government calling for strategic cooperation in innovation and the development of advanced technologies. The conference, which brought together leading figures from the public and private sectors from both India and the United States, identified accomplishments and existing challenges in the Indian innovation system and reviewed synergies and opportunities for enhanced cooperation between the Indian and U.S. innovation systems. This report on the conference contains three elements: a summary of the key symposium presentations, an introductory chapter analyzing the policy issues raised at the symposium, and a research paper providing a detailed examination of India's knowledge economy, placing it in terms of overall global trends and analyzing its challenges and opportunities.

This study defines the aims and tools of a new innovation policy and identifies examples of good policy practice recently implemented in OECD countries.

In 2010, India celebrated its 60th anniversary as an independent sovereign republic. India is the fourth largest economy by gross domestic product. Economically, it is building itself as a formidable force and global influence. At the same time India has fundamental challenges: its inequities are visible; its young population tread a thin line between opportunity and pitfall; its infrastructure has gaping holes; and it’s a slow chaotic democracy. This book establishes that in spite of these challenges, a new India is emerging out of the old, colliding more often than collaborating with the old India. Much of the new India is built on the economic momentum established 20 years ago and built by private entrepreneurs. The new economic climate, together with talent and entrepreneurship, is also making India a net supplier of innovation. Going by current trends, India will become an innovation super power by 2035. This book will establish that India is not just leveraging innovation for global competitiveness alone, but is also leveraging innovation as the specific instrument for inclusive growth. This book identifies gaps in the current innovation ecosystem and recommends a portfolio approach and calls for a National Innovation System (NIS) as a blueprint to fix the gaps. It suggests that for India to succeed in identifying, funding and sustaining a balanced innovation portfolio, India will also have to succeed in eliminating poverty, increase its rural GDP manifold, and provide employment, education and health for all its citizens.Click Here to view the official page for this title on Facebook. Establishes and analyses the trends that support India’s global emergence as an Innovation Superpower Identifies three critical levels of innovation namely grassroots innovation, national innovation and innovation for global competitiveness Recommends a portfolio approach as a blueprint for the creation of a National Innovation System

It has been a little more than sixty years since the foundations of India's national system of innovation were laid, and it is time to look back and examine what form it has taken. What are the achievements of the Indian system of innovation? How has it performed in terms of building industrial capabilities and promoting development? Using the 'National System of Innovation' and the 'Sectoral System of Innovation' approach, this book organizes historical evidence on the accumulation of scientific, technical, innovation and industrial capabilities in different industrial sectors. It is also useful to keep in mind that according to the sectoral tales of this book, irrespective of the policy, there will always be some individuals and organisations who will experiment to find creative ways of pursuing opportunities.

Promoting innovation requires innovative government policy. Innovation through the creation, diffusion and use of knowledge has become a key driver of economic growth and provides part of the response to many new societal challenges. However, the determinants of innovation performance have changed in a globalising, knowledge-based economy. Government policy to boost innovation performance must be adapted accordingly, based on a sound conceptual framework. Synthesising the results of a multi-year OECD project on national innovation systems (NIS), this publication demonstrates how the NIS approach can be implemented in designing and implementing more efficient technology and innovation policies. Further reading Innovative Clusters: Drivers of National Innovation Systems. Innovative People: Mobility of Skilled Personnel in National Innovation Systems. Innovative Networks: Co-operation in National Innovation Systems.