Relevance: GS-3 (Science & Tech – R&D Ecosystem) | Source: The Hindu

India’s research spending remains low at 0.65% of GDP and is heavily dependent on public funds. To become a knowledge and innovation-driven economy, India needs a predictable, long-term research pipeline that links universities, industry, and markets.

Global Benchmarks (What Works Abroad)

• Leading tech companies invest 5–20% of revenue in R&D (e.g., Alphabet, Huawei, Meta).
• Corporate research is strongly aligned with universities, using shared labs, long-horizon projects, and talent pipelines.
• Countries succeed when they ensure steady, multi-year funding and strong industry–academia collaboration.

Policy Actions Needed for India

1. Set Clear R&D Targets

• Fix R&D-to-sales ratios for key sectors (pharma, electronics, auto, space, energy).
• Promote measured, outcome-linked incentives—patents, testing, clinical trials.

2. Strengthen University–Industry Linkages

• Expand HEI–industry research labs, co-funded projects, and access to shared infrastructure.
• Support doctoral cohorts aligned to industry problems.

3. Build a Structured Innovation Pipeline

• Use modern Intellectual Property frameworks to encourage technology transfer.
• Promote start-ups through incubators, pilot lines, and testbeds in universities.

4. Improve R&D Financing

• Encourage long-term private investment via tax incentives, predictable grants, and disclosure norms for listed firms.

MCQ

Q. Which of the following can strengthen India’s research ecosystem?

1. Co-funded industry–university projects
2. Setting sector-wise R&D-to-sales ratios
3. Expanding shared research labs in HEIs

Correct Answer: (d) 1, 2 and 3