R&D Innovation Dynamics: NITI Aayog’s Ease of Doing R&D Findings

NITI Aayog has released an “Ease of Doing R&D” report to address why India’s innovation sector is lagging behind global peers.

GERD: Gross Expenditure on R&D

• GERD measures total expenditure on Research and Development as a percentage of GDP.

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Current Situation (GERD)

• India’s Gross Expenditure on R&D (GERD) is stagnant at 0.6% to 0.7% of GDP. In contrast, South Korea spends 5.3%, the USA spends 3.4%, and China spends 2.6%.
• Private Sector Gap: In the USA, 70% of R&D spending comes from the private sector. In India, 70% comes from the government. Private companies find R&D risky due to long gestation periods and weak Intellectual Property Rights (IPR).

Systemic Issues

• Funding Imbalance: Premiere institutes like IITs have world-class labs, but state universities often lack basic equipment.
• “Valley of Death”: Many ideas die in the lab because there is a gap between research and market products. There is a lack of capable Technology Transfer Officers to bridge this gap.
• Silos: Different departments (DST, CSIR) often conduct redundant research on the same topics without sharing data.
• Low Private Sector Participation: Unlike developed economies where private firms drive R&D, India’s research expenditure is largely government-funded.
• Unequal Funding Distribution: Premier institutions such as IITs receive substantial funding, whereas many state universities lack even basic research infrastructure.

Consequences

• Brain Drain: Weak research ecosystems encourage talented scientists and innovators to move abroad.
• Dependence on Imports: India remains dependent on foreign technology in critical sectors such as semiconductors, AI, healthcare, and defence.

Measures Suggested by NITI Aayog

• Increase R&D Expenditure: India should raise GERD to nearly 2% of GDP for sustained innovation-led growth.
• ROPE Framework: ROPE stands for Removing Obstacles and Promoting Enablers to improve the ease of conducting research.
• Simplify Grant Systems: Single-window approvals and simplified banking procedures should reduce delays.
• Strengthen State Universities: Faculty vacancies and infrastructure deficits in state institutions must be addressed urgently.
• Improve Industry-Academia Collaboration: Universities and industries should jointly identify research priorities and commercialization opportunities.
• Create Technology Transfer Offices: Dedicated institutions are needed to convert research into market-ready products.
• Use CSR Funds for R&D: Corporate Social Responsibility funds can support innovation and grassroots research initiatives.
• One Nation One Subscription: Government-supported unified access to research journals can democratize scientific knowledge across institutions.

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Conclusion

• India’s developmental challenges today are deeply interconnected. A weakening currency affects macroeconomic stability, poor nutritional systems weaken human capital, and inadequate R&D investment limits innovation and competitiveness. 
  • Addressing these issues requires a combination of sound economic management, nutrition-sensitive agriculture, and a strong innovation ecosystem.
• For India to achieve the vision of Viksit Bharat 2047, it must strengthen institutional capacity, invest in human development, and promote sustainable, research-driven growth.

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