Research and Development (R&D) is gaining momentum in India. India is increasingly becoming a top global innovator for high-tech products and services. In a recent study by World Bank, it found that more than 300 multinational corporations have set up R&D and technical centres in India. Hundreds more have their plans to move in future.
Here is a graphical representation of improvement areas that India needs to address:
Here are some of the other interesting facts that I learned from the report..
- Roughly 90 percent of the workforce is employed in the informal sector, which is often characterized by low-productivity and low-skill activities.
- About 2 percent of India’s population—20 million people—live abroad, where they earn the equivalent of two-thirds of India’s GDP.
- Of the top 50 applicants for patents in India between 1995 and 2005, 44 were foreign firms. Only six were Indian; three of these were public institutions and one, a public corporation. Just two were private Indian firms, both in the pharmaceutical industry.
- Aggregate domestic R&D spending has never exceeded 1 percent of GDP, and 75–80 percent comes from the public sector.
- Since the Indian economy was opened up in 1991, the private sector has invested the most in research and development (R&D) in the sectors most open to competition. In 2004, enterprise R&D was more than seven times higher than in 1991.
- Only 16 percent of Indian manufacturing firms offer in-service training, compared with 92 percent in China and 42 percent in the Republic of Korea.
- Average enterprise productivity in finance, insurance, and real estate companies is nearly 23 times that in agriculture. But these industries account for only 1.3 percent of employment, while agriculture accounts for 60 percent
I never imagined that only 2% of Indians living abroad earn as much as two thirds of India’s GDP (roughly $660 billion)..Wow !