india: an emerging knowledge hub vivek pandit deputy director, ficci the new face of global r&d...

India: An Emerging Knowledge Hub

Vivek Pandit

Deputy Director, FICCI

The New Face of Global R&D

© Evalueserve, 2005. All Rights Reserved - Privileged and Confidential

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?


Science and Technology System

India: Robust R&D infrastructure

In-HouseR&D in Private

Industry

S&T in NGOs

Central Govt. S&T Depts.

CentralSocio-Economic

Ministry

Independent ResearchInstitutes

State Government

S&T System In India

Space

Science,Industrial Research

Biotech

OceanDevelopment

DST

AtomicEnergy

Source: DIPP, Internet news flow, DST

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

Robust research infrastructure→ 2,900 research centres→ 400 state run labs, 380 universities→ CSIR, IITs, IISc and NITs to

collaborate


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:

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;


Department of Science & Technology (Cont..)

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.


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)


High Technology Research in India

Centres for High Technology Research

• ARCI (International Advanced Research Centre for Powder Metallurgy & New Materials)- Hyderabad

– Thrust Areas– Surface Engineering– Laser Processing– Ceramics– Powder Metallurgy

• National Physical Laboratory(NPL)-New Delhi– Thrust Areas

– Standards – Apex Level Calibration– Engineering Materials– Electronic Materials– Materials Characterization– Radio & Space Physics– Low Temperature Physics



• 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

• VLSI Design

• Multiprocessor System Design

• High Performance Networks

• Digital Libraries



• TIFR (Tata Institute of Fundamental Research)- Mumbai– Thrust Areas

• 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



• 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

• 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

• IGCAR (Indira Gandhi Centre for Atomic Research)- Kalpakkam– Thrust Areas

• Multidisciplinary Programme for development of Sodium cooled Fast Breeder Reactor (FBR) Technology

• 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.


India is emerging as a global R&D hub?

Abundant talent, low cost and strong research infrastructure drive R&D in India

Robust R&D Infrastructure

Abundant

Talent Pool

Source: Evalueserve analysis

India’s Value

Proposition

R&D Drivers in India

Research at Competitive Costs


The government has extended its support to R&D through favorable regulations

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

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


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→ 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

“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‘

Indians comprise→ 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

Source: Department of Industrial Policy and Promotion (DIPP), Internet news flow, DaVinci Institute, IMD World Competitiveness Yearbook - 2003


Advantage India: Low cost of research

StudyAverage US

Cost (in million USD)

India Cost

Phase I 20 50% less

Phase II 50 60% less

Phase III 100 60% less

Source: Evalueserve analysis, Business Line, R&D Magazine

Cost of Clinical Research – India vis-à-vis the US

US India

USD 7000/month

USD 1500/month

Compensation of a chip designer (master’s degree and five years experience)

→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


Emergence of India: Potential Destination for R&D

R&D Investment in India

2.2

3.2

6.8

0

1

2

3

4

5

6

7

8

1997 2002 2004Year

US

D B

illio

n

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

R&D investment has reached USD 6.8bn in 2004

Global survey by London based Economist Intelligence Unit positioned India as the third most favorable destination for R&D investments

Source: Evalueserve analysis, Da Vinci Institute, Ministry of Science and Technology

Health – ICMRICMR has a network of 21 permanent research institutes and 6 regional medical research centers

Defense – DRDODRDO has 51 laboratories with 5000 scientists and 25000 technical and supporting personnel

Space – ISRO ISRO has established INSAT space system for telecommunications and developed satellite launch vehicles PSLV and GSLV

Energy – ONGCONGC 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

85% of the R&D is carried out by the government through its research labs and PSUs


The developed world can carry out Cost-competitive cutting edge research in India

Area of expertise Typical Functions

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)

Source: Evalueserve analysis of internet news flow

→ High Tech/Electronics→ Telecom and IT→ Chemicals→ Pharmaceuticals→ Consumer Durables

→ Chip and Electronic devices Design→ Software and elements of hardware→ Agri-products and petrochemicals→ Development for India, clinical trials→ Electronic goods, control devices

MNC presence in the R&D sector is increasing with over 150 MNC research setups/partnerships


The developed world can carry out Cost-competitive 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


The developing world can benefit from India’s high quality research output

→ 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 (beta- carotene)

Source: Evalueserve analysis of internet news flow, Outlook

Research in food and agriculture ensures:Economic development of rural areasIncreased productivity for global food securityBetter nutrition for low income groups


The developing world can benefit from India’s High Quality Research Output

→ 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%


Research in healthcare ensures:Improved health at affordable pricesIncreased life expectancy for developing countriesBetter handling pandemic killers such as TB and Malaria


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


NCR, Bangalore, Mumbai, Pune and Hyderabad are the established R&D clusters

Source: Evalueserve analysis of press reports, CSIR

Location MNCs

Bangalore IISc, LG Electronics, GE, TI, Akzo Nobel, Delphi, GM, Daimler Chrysler, Philips,, Intel, Hewlett Packard

NCR ICMR, IITD, Adobe Systems, AVL, Eli Lilly, Ericsson

Mumbai TIFR, IITB, Bayer AG, Clariant, Colgate Palmolive, Johnson and Johnson, Pfizer, Siemens, Roche

Hyderabad DERL, NGRI, Microsoft, Oracle

Pune NCL, CIRT, Cummins, Whirlpool

Bangalore

Mumbai

New Delhi-Gurgaon-Noida

Established R&D Hubs

Hyderabad

Pune


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 Research Development Corporation (NRDC)

Central Electronics Limited (CEL)

Council of Scientific and Industrial Research (CSIR)


Department of Scientific & Industrial Research- TPDU

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 innovatorsTo forge industry- institute cooperationTo 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


Department of Scientific & Industrial Research- TPDU

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


Fiscal IncentivesFiscal 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


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


Indo-Italian R&D partnership

Both India and Italy are gaining through the exchange of R&D expertise

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 semi-

conducting 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

Benefits of the Collaboration

Exchange of research facilities Joint Technology Development Establishment of Joint Research Centre Research Fellowships to be offered in

Advanced technology sectors like 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


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 India- Italy 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


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


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

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

The conference will cover sessions on a variety of topics…

An Exhibition showcasing the latest achievements in

Science and Technology to be organised concurrently.

Vivek [email protected]

Thank You…

india: an emerging knowledge hub vivek pandit deputy director, ficci the new face of global r&d...

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