WIPO’s Global Innovation Index 2022 is out and India has climbed to the 40th rank out of 132 countries. India has leapfrogged 41 places in 7 years as India was at 81st position in 2015 and at 46 in Global Innovation Index, in 2021. Switzerland remains the world’s leader in innovation for the 12th consecutive year followed by the United States, Sweden, the United Kingdom, and the Netherlands.
Many nations have recognized the importance of innovation in steering human progress globally and are contributing like never before to shield their future. India is among the fastest-growing economies globally and innovation has played a critical role in achieving this status. India has rightly identified innovation as a key priority and is committed to further influencing its innovative footprint across the globe. Though the groundwork has been done, India still has a long way to go to become a leader in developing cutting-edge, path-breaking, and innovative technologies.
Numerous countries now understand the significance of innovation in guiding human growth on a global scale and are making greater contributions than ever to safeguard their future. India has one of the world's fastest-growing economies, and innovation has been a key factor in its success. India has positioned innovation as a top priority and is dedicated to expanding its innovative influence globally. Even if the foundation has already been laid, India still has a long way to go before it can be considered a leader in the creation of cutting-edge, ground-breaking, and inventive technology.
India has begun to carve a path toward an enabling environment by establishing an ecosystem that fosters innovation. India is the 3rd largest start-up ecosystem with over 100 start-ups. India produces the highest number of engineers but the number of innovations doesn’t match up to this amount. In 2020, 56,771 patent applications were filed in India whereas 14.97 lakh and 5.97 lakh applications were filed in China and US respectively.
According to a recent announcement from the China National Intellectual Property Administration (CNIPA), as of the end of September, the administration had granted a total of 59,000 integrated circuit layout-design certificate patents. The country ranks 11th in the Global Innovation Index 2022, leading the index among all medium- to high-income economies. China's economic growth has been aided by the development of intellectual property (IP), with national IP import and export royalties reaching 2.19 trillion yuan ($307.76 billion) from 2012 to 2021, with an annual growth rate of 13.7 percent.
When it comes to India, accessing the intellectual property rights (IPR) of international companies is an expensive endeavor that has been rapidly growing. India has increased its payment for the use of the intellectual property by 56,862% over the past four decades, from $15.1 million in 1981 to $8.6 billion in 2021, or $8.631.3 million. An examination of the Balance of Payments (BOP) statistics made public by the International Monetary Fund (IMF) indicates that in 2021, Indians paid around ten times as much for the use of foreigners' intellectual property than the rest of the world did. The income from IPR owned by Indian businesses, on the other hand, was just $870.1 million.
The Global Innovation Index (GII) continues to present the world’s largest top 100 science and technology clusters which are, places where new technologies are born at an astonishing rate and where talent, money, and skill pools support the growth of new businesses and industries.
Among the top 100, Tokyo–Yokohama (Japan) is the top-performing cluster, followed by Shenzhen–Hong Kong–Guangzhou (China and Hong Kong, China), Beijing (China), Seoul (Republic of Korea), and San Jose–San Francisco (United States). China is home to two of the world's largest five science and technology clusters. For India, Bengaluru (60th), Delhi (64th), Mumbai (84th) and Chennai (97th).
In India, R&D investment has been relatively low, low private participation is one of the key hindrances in India’s overall R&D spending. The percentage of R&D investment in the country has declined from 0.8% in 2008-2009 to 0.7% in 2017-18 to 0.65 in 2020-21. As per India Innovation Index, 2022 India’s Gross Expenditure on R&D is one of the world’s lowest, with just USD 43 per capita. India is a country where the manufacturing sector is peculiarly structured, with either a very small-sized firm or a very large-sized firm and a clear ‘missing middle.
It's true that innovation and employment go hand in hand. Long-term growth and employment would be fueled by innovation. Additionally, it is important to strike a balance between labour regulations that uphold high standards for workers while also fostering an atmosphere that fosters innovation.
One of India's greatest advantages is its young population. However, most Indians have a tendency to be risk-averse, which is linked to a fear of and intolerance for failure, making it challenging to come up with original ideas. In the absence of proper assistance and support, these youth migrate to other nations.
The filing procedure for intangible property in India, such as patents and trademarks, is difficult and subject to delays. The average pendency for a final decision in acquiring patents in India is about 58 months in India to dispose of a patent application as compared to 20.8 months in the US, 20 months in China, 15.8 months in Korea, and 25.4 months in Europe, and 15 months in Japan.