Private sector should lead in research and development: Jaipal Reddy

New Delhi: The Centre today strongly pitched for increased private sector investment in research and development efforts in the country and creating a “correct” ecosystem that promotes innovation. Science and Technology Minister S Jaipal Reddy said while investment of private sector in R&D in developed countries is 60-80 percent, it is only about 30 percent in India.[caption id=“attachment_942475” align=“alignleft” width=“380”] Science and Technology Minister S Jaipal Reddy. Image courtesy PIB[/caption] “The government leads the expenditure in research innovation in the country. We need the private sector to take the lead in innovation enterprise. One expects the private sector to play a bigger role in the years to come,” he said. The minister was speaking at the Assocham’s second national innovation summit and award function in New Delhi. According to a report released on the occasion, 75-80 percent of the R&D spending in India is funded by the government entities and academia in India. This is in contrast to USA where 60 percent of the spending is funded by the private sector. It stated that “Indian companies R&D expenditure remained lower than international standards”. These companies together spent a total of $1.8 billion on R&D last year which is only 0.5 percent of the revenue earned in the same period. Reddy also sought “to correct the Indian innovation ecosystem and bridge the gaps with critical inputs like policy environment, creative people, institutional strength, investment climate, strong entrepreneurship and enabling ecosystem to create wealth”. The minister emphasised on developing an education system where focus is laid on application that promotes innovation. “Eduction is not focussed on applications. It relies heavily on understanding and imparting knowledge rather than skills to apply,” he said. Reddy especially regretted the standards of the engineering colleges and other educational institution with respect to innovations. “We need a strong innovation movement in the entire chain of knowledge network,” he said adding the government would soon be releasing a white prepared by a committee comprising experts from industry and government. PTI