Unleashing India's Innovation

Mark A. Dutz

Description

India's recent growth rate has been impressive, with real GDP rising by over 8 percent a yearsince 2004. The country is also becoming a top global innovator for high-tech products andservices. Still, India is underperforming relative to its innovation potential. Even a dynamicyoung population--more than half of whom are under 25 years of age--is constrained when skillstraining and higher education are insufficient. To sustain competitiveness, economic growth, andrising living standards over the long term, India needs to aggressively harness its innovation potential.
The term innovation is broadly defined in this book to include both the creation andcommercialization of new knowledge and the diffusion and absorption of existing knowledge in newcontexts. A unique feature is the book's focus on inclusive innovation, that is, knowledge creationand absorption activities most relevant to the needs of the poor. Concrete recommendations aremade for increasing productivity and welfare through the disciplining role of competition, includingtraining and education, information infrastructure, and public and private finance as supportmechanisms for broad-based innovation.
'Unleashing India's Innovation: Toward Sustainable and Inclusive Growth' provides nationaland local policy makers, private sector enterprises, academic and research institutions, international organizations, and civil society with a better understanding of the power of innovation to fuel economic growth and poverty reduction.

Informations

• Publié par: world-bank-publications
• Publié le: 15 octobre 2007
• Nombre de lectures: 23
• EAN13: 9780821371985
• Langue: English
• Poids de l'ouvrage: 2 Mo

Extrait

Unleashing India’s
InnovationUnleashing India’s
Innovation
Toward Sustainable
and Inclusive Growth
Mark A. Dutz, Editor
Washington, D.C.© 2007 The International Bank for Reconstruction and Development / The World Bank
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This volume is a product of the staff of the International Bank for Reconstruction and Development /
The World Bank. The findings, interpretations, and conclusions expressed in this volume do not
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ISBN: 978-0-8213-7197-8
eISBN: 978-0-8213-7198-5
DOI: 10.1596/978-0-8213-7197-8
Cover design: Quantum Think, Philadelphia, Pennsylvania
Library of Congress Cataloging-in-Publication Data
Unleashing India’s innovation : toward sustainable and inclusive growth /
edited by Mark A. Dutz.
p. cm.
Includes bibliographical references and index.
ISBN 978-0-8213-7197-8 — ISBN 978-0-8213-7198-5 (electronic)
1. India—Economic policy—1991– 2. Sustainable development—India.
3. Ionomic conditions—1991– I. Dutz, Mark Andrew.
HC435.3.U55 2007
338.954'07—dc22 2007026343Contents
Foreword ix
Acknowledgments xi
Abbreviations xiii
Executive Summary xv
Overview: Toward an Action Agenda for Innovation 1
Mark A. Dutz
1 The Indian Context and Enabling Environment 23
Mark A. Dutz and Carl Dahlman
2 Creating and Commercializing Knowledge 49
Carl Dahlman, Mark A. Dutz, and Vinod K. Goel
3 Diffusing and Absorbing Knowledge 83
Vinod K. Goel, Carl Dahlman, and Mark A. Dutz
4 Promoting Inclusive Innovation 105
Anuja Utz and Carl Dahlman
5 Strengthening Skills and Education for Innovation 129
Isak Froumin, Shanthi Divakaran, Hong Tan, and Yevgeniya Savchenko
6 Upgrading Information Infrastructure 147
Shanthi Divakaran, Anil Srivastava, and Mark Williams
7 Enhancing Innovation Finance 163
Inderbir Singh Dhingra
Technical Appendix 187
Bibliography 193
Index 197
vContents
Boxes
1.1 Broadly Based Innovation Activities 28
1.2 Innovation Foresight Processes in Canada and the Netherlands 44
2.1 Private R&D in Pharmaceuticals 51
2.2 R&D Links between Multinational Corporations and Academia 53
2.3 International Programs to Stimulate Early-Stage Technology Development 60
2.4 CSIR: Restructuring from Technology Development for Self-Reliance to
Internationally Competitive, Market-Driven R&D 64
2.5 International Examples of Supporting High-Risk Technologies: DARPA
and ATP 68
2.6 Hsinchu Science Park 75
2.7 Collaborative Public-Private Partnerships: ICICI Knowledge Park and the
Center for Genomic Application 76
2.8 The Israeli Binational Industrial Research and Development Program 79
3.1 Technology Licensing Contracts 90
3.2 Ministry of Small Scale Industries: Selected Metrology, Standards, Testing, and
Quality Initiatives 96
3.3 Ministry of Small Scale Industries: Selected Technology Upgrading
Initiatives 99
4.1 Public Research for Development 108
4.2 University-Enabled Initiatives 109
4.3 Fortune at the Bottom of the Pyramid Initiatives 110
4.4 International Public Good–Type Innovation Efforts 112
4.5 Grassroots Innovation Networks: HBN, SRISTI, GIAN, and NIF 114
4.6 Models for Promoting Inclusive Innovations 115
4.7 Approaches to Designing Intellectual Property Rights for Traditional
Knowledge 119
4.8 China’s Spark Program 121
4.9 The Experiences of Agriculture Technology Management Agencies 122
4.10 NGO Initiatives and Rural Networks 123
4.11 Indian Initiatives for Corporate Social Responsibility 125
5.1 Malaysia’s Human Resource Development Fund 138
5.2 India’s Higher Education System 140
5.3 Training Offered by the Private Sector in India 142
6.1 The Impact of ICT on Small-Scale Fishing Enterprises in Kerala 150
6.2 What Are National Research and Education Networks? 154
6.3 Applications by National Researcetworks 155
6.4 Trends among Nesearcetworks in Europe 158
7.1 International Experience with Funds of Funds to Spur Public-Private
Venture Capital Funds 175
Figures
O.1 Unleashing India’s Innovation Potential 3
1.1 India’s Dualistic Economic Structure 25
1.2 Contributions to Real GDP Growth, by Industrial Category, 2001–06 27viContents
1.3 R&D Effort in Various Countries, 2004 32
1.4 R&D Expenditure in India, 1990–2005 33
1.5 Innovation Outputs in Various Countries, 2003–06 35
1.6 R&D Intensity of Indian Corporations in All Reporting Firms and
Three Key Sectors, 1991–2004 39
1.7 Obstacles to Starting and Closing a Business in Various Countries, 2006 41
2.1 Key Public Institutions Involved in R&D and R&D Expenditures in India,
2003–04 63
3.1 Distribution of Value Added per Worker in India, by Sector and Company
Size, 2004 84
3.2 Openness to Global Flows of Products and Capital in Various Countries 87
3.3ws of Intellectual Property in Various Countries,
as Measured by Royalty and License Fee Payments, 2004 89
3.4 Competitive Priorities of Manufacturing Enterprises, 1997 and 2001 93
3.5 Enterprises with Internationally Recognized Quality Certification 94
5.1 Gross Enrollment Rates, 2004 131
5.2 Business Executives with Companies Headquartered in India Respond
to Future Skills Constraints in Their Sectors 134
5.3 Manufacturing Firms Offering In-Service Training 135
5.4 Gross Enrollment Ratio, Tertiary Education 141
5.5 Student Enrollment in Higher Education, 2005–06 141
6.1 Urban and Rural Teledensity (Fixed and Mobile) in India, 1998–2006 152
6.2 Capacity of International Links to National Research and
Education Networks 157
7.1 Mapping of Early-Stage Finance in India 167
7.2 Venture Capital and Private Equity Deals in India, 2000–06 169
7.3 Distribution of Venture Capital and Private Equity Deals by Investment
Stage in India, 2004–05 169
7.4 India’s Venture Capital and Private Equity Landscape: Skewed toward
Larger and Later-Investment-Stage Deals 171
7.5 Credit Flows to Micro and Small Enterprises, End-March 2003–06 179
7.6 Reliance on Internal Funds for Financing New Investments, Various
Countries, 2006 180
7.7. Access to Bank Finance in India, by Firm Size, 2006 181
Tables
1.1 Changes in Labor Productivity Relative to Agriculture, by Economic
Sector Based on Principal Status of Workers, 1983–2000 26
1.2 Formal Innovation Inputs and Outputs in Various Countries, 2003–04 31
1.3 Indian Patent Applications and Grants, 1975–2005 33
1.4 Key Innovation-Related Findings of the India 2006 Enterprise Survey 36
1.5 The Enabling Environment for Innovation: Policies, Institutions,
and Capabilities 38
2.1 Programs to Promote Private R&D 56
viiContents
4.1 Grassroots Innovations: Activities and Actors 113
6.1 Average Annual Growth of Value Added in Communications and Business
Services in India, 1950s–2000s 148
6.2 IT-Enabled Services and Business Process Outsourcing Revenues and
Employment in India, by Service Line, 2003–04 149
6.3 Mobile and Broadband Penetration in Various Countries, 2005–06 152
6.4 High-Speed Networks in Various Countries 156
6.5 Core Network Capacity in Selected EU/EFTA National Research and
Education Networks 159
7.1 Number of Early-Stage Deals in India, 2000–05 170
A.1 Formal and Informal Employment by Industrial Category, FY 2000 187
A.2 Innovation Outputs and Productivity: Ordinary Least Squares Estimation of
Productivity Function 188
A.3 Creation versus Absorption and Productivity: Estimation of Frontier
Production Function 189
A.4 Distribution of Indian Firms by Incidence of In-Service Training 190
A.5 Joint Estimation of Bivariate Probit Model for Innovation and
Training Decisions 191
A.6 In-Service Training and Productivity: Estimation of Productivity Function<