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Innovation in Public-Funded R&D
Do Public-Funded R&D Units Innovate Enough?
Context: In a significant move to evaluate the performance and innovation potential of India’s publicly funded research and development (R&D) sector, the Office of the Principal Scientific Adviser to the Government of India, in collaboration with the Confederation of Indian Industry (CII) and the Centre for Technology, Innovation, and Economic Research (CTIER), has released a detailed report titled “Evaluation of Innovation Excellence Indicators of Public Funded R&D Organisations.”
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- The landmark study assessed 244 R&D organisations under various ministries, excluding defence, space, and atomic energy institutions due to the sensitive nature of their work.
- Academic institutions and universities were also not part of this analysis.
Purpose of the Study: Aligning Public R&D with National Goals
| According to the Economic Survey 2025, India’s R&D spending rose from ₹60,196 crore in FY11 to ₹127,381 crore in FY21-22 but remains just 0.64% of GDP, far below global standards. Unlike countries like China and the US, where private firms drive over 50% of R&D, India’s industrial R&D is limited to a few sectors and dominated by public defense labs. The focus remains on basic research, limiting private sector interest. |
- Effective Research: The core objective of the study was to determine whether public R&D labs are primarily engaged in academic, curiosity-driven research or if they are effectively contributing to industry-aligned innovation and product development.
- Rone in National Priorities: The report emphasizes the need for public R&D entities to play a more significant role in driving national priorities, such as the Sustainable Development Goals (SDGs), and contributing meaningfully to India’s socio-economic development.
- Evaluating Innovation Indicators: The authors aimed to evaluate innovation indicators that reflect how these labs contribute to national missions like the Deep Ocean Mission and the National Quantum Mission, while also exploring their support for women scientists, skilling, and employment creation through partnerships with industry and startups.
How the Study Was Conducted: A Data-Driven Approach
- The comprehensive survey was conducted through an online questionnaire covering 62 specific parameters. These included data on:
- Annual R&D expenditure
- Number of patents filed and technologies developed
- Share of women scientists and young researchers
- Support for startups and deep tech innovation
- Collaboration with domestic and international industry partners
- Contributions to government flagship programs like Make in India, Skill India, and Swachh Bharat
- Participating labs self-classified their work into ‘Basic’, ‘Applied’, ‘Services’, or a ‘Hybrid’ category.
- All data submissions were verified with a director-level sign-off to ensure accuracy and authenticity.
Key Findings: Gaps in Industry Engagement and Startup Support
- Gaps: Despite the high potential, several gaps were identified in the current public-funded R&D landscape:
- Only 25% of labs offered incubation support to startups
- Merely 16% supported deep tech startups
- Just 15% collaborated with international industry partners
- Only 50% of labs opened their facilities to external researchers and students
- 35% targeted the Skill India Mission, while 30% engaged with the Swachh Bharat Mission
- Workforce: On the workforce front, there was a shift from permanent to contractual staff, with numbers rising from 17,234 to 19,625 in 2022-23.
- Meanwhile, the median share of young researchers increased from 54% to 58%, reflecting a growing influx of early-career scientists.
- Budget: The combined budget of 155 labs grew significantly from ₹9,924 crore in 2017-18 to ₹13,162 crore in 2022-23.
- Women: However, the overall number of scientific staff and the representation of women scientists remained stagnant during 2021–2023.
Recommendations: A Call for Reform and Alignment with ‘Viksit Bharat’
The report calls for urgent reforms to ensure that public-funded R&D organisations are aligned with the vision of Viksit Bharat (Developed India). Key recommendations include:
- Mandatory review and realignment of institutional mandates toward critical government-identified technologies
- Establishing Section 8 companies (non-profit entities) to bolster startup support
- Enhancing collaboration between public labs, industry, and academia
- Opening up research infrastructure for broader use
- Promoting cross-linkages with higher educational institutions
- The report underscores the necessity for these labs to work not in silos but as an integrated innovation ecosystem contributing to national development.
