The new growth theories incorporate technological change endogenously as a factor of production in its own right. Similarly, the neo-technology theories of trade emphasize the role of technology in determining a country’s international trade and competitiveness. With the onset of the Digital Revolution or Industry 4.0, technology and innovation will assume an even greater criticality as determinants of competitiveness and economic growth. Under this theme, ISID’s work explores the firm-level R&D behaviour of Indian enterprises to identify policy lessons to enhance it. ISID has also started analyzing the opportunities and challenges that Industry 4.0 poses before the country, particularly the manufacturing sector.
ISID was approached by the UNIDO to provide an self-contained input on the macroeconomic context for innovative activity in India as part of the larger UNIDO-Department of Science and Technology (DST) Project on National Manufacturing Innovation Survey. This study undertaken by ISID reviews the macroeconomic innovation landscape of India in a comparative perspective with leading innovative economies globally in terms of gross expenditure on R&D, R&D spending in priority sectors, FDI including those in R&D, technology adoption, digitalization, infrastructure, human capital and knowledge output. It also makes a state wise comparison of innovation performance. The study was conducted by Dr Reji Joseph, Associate Professor, ISID.
The neglect of innovative activity by Indian enterprises, which is a key factor determining their competitiveness, is key policy concern. This project will analyze the determinants of R&D behaviour of Indian enterprises by large firms, MSMEs as well as MNE affiliates (revisiting the patterns observed by Kumar and Aggarwal, 2005), using a large panel data set. It would also examine the determinants of R&D activity across key sectors and technology groups. It will draw policy lessons for designing appropriate policies to strengthen the innovation capability of manufacturing firms in India.
Research Team: Prof Nagesh Kumar and Dr K Seenaiah
Status: [Ongoing], project launched in 2022-23; time frame: 12 months.
New technologies such as e-Commerce and digital marketing can be a really powerful tools especially for women-led MSMEs enabling them to conduct their economic activities from the convenience of their homes. ISID collaborated with UNESCAP SSWA Office to organize a roundtable discussion on the role that the new technology can play in empowering women entrepreneurs at a special session of the FIWE-ISID-MSME International Conference on “Women-led MSMEs as Catalysts of Transformation” on March 24, 2022. The distinguished speakers of the session included Mrs. K. Ratnaprabha, Former Chief Secretary, Government of Karnataka & President, UBUNTU; Dr. Rajan Sudesh Ratna, Dy. Head, UNESCAP-SSWA Office; Mr. Anurag Awasthi, COE Manager, GeM; Ms. Shirley Jayawardena, President, Federation of Chambers of Commerce and Industry of Sri Lanka (FCCISL); Ms Arundhati Mukherjee, Marketing Consultant. The session was moderated by Prof. Nagesh Kumar, Director, ISID. The roundtable highlighted the potential of women-led MSMEs in the development of the economy in terms of potential contribution to the GDP, and creation of millions of additional jobs and incomes. It discussed the challenges faced by women entrepreneurs in accessing markets and accessing finance and technology on equal terms. In this context reference was made to the Government of India initiative of Government–e-Marketplace (GeM) – an online public procurement platform that is also helping women entrepreneurs participate in government procurement. It also highlighted the UNESCAP-SSWA initiative to build the capacity of women entrepreneurs to leverage new technology such as digital marketing and e-Commerce. The report of the Roundtable has been submitted to UNESCAP-SSWA. Prof Nagesh Kumar was the project coordinator.
This study argues that innovations for the poor (inclusive innovation) are in short supply because of poor “market access” due to underdeveloped or missing markets in rural areas where most of the poor are located, and because of poor “technology access” due to the absence of domestic innovative capability and high costs of adapting technology products for poor populations. Based on a review of 58 recent cases of inclusive innovation, which have been discussed in the media, in policy circles and in the academic literature, we identify the agency and areas where inclusive innovations have been successful and areas where significant gaps exist. Our findings reveal that domestic private firms, MNEs and other non-state actors have played a significant role in introducing pro-poor innovations but have mostly concentrated in areas of low market access and/or high technology access. Inclusive innovation efforts are scarce in situations where technology access is low, although multilateral charities and agencies are targeting such areas. Policy support in India has taken the form of finance provision but our analysis of the Indian cases suggests that this should be complemented by more adaptive R&D in public sector bodies and public investments in marketing infrastructure. These are also factors that constrain overall R&D.
Research Team: Prof Suma Athreye
Status: [Ongoing], project launched in February 2022; time frame: 8 months.
Advances in technology, artificial intelligence, machine learning, deep learning, data mining, internet of things, cloud computing, mobile robotics, and so on, which are essential features of the Fourth Industrial Revolution or Industry 4.0, not only facilitate the increasing automation of routine jobs or task, but also facilitate automation of non-routine jobs. This automation, as predicted, are most likely to take away around 50 percent of the total jobs in developed and developing countries. Developing countries, like India, are striving to adopt advanced technologies or automation technologies to revitalize their manufacturing sector. Given the capital-intensive nature of production and increasing adaptation of Industry 4.0 and automation technologies, the question arises: Is it feasible to boost employment in the manufacturing sector? In this context, this study intends to understand the extent of diffusion of automation technologies and its purported impact on employment in the manufacturing sector in India. A working paper on conceptual issues has already been prepared. Another paper takes a stock of the opportunities and challenges in harnessing the potential of the new revolution. ISID has also hosted a policy roundtable on the subject and has issued a policy brief based on the discussions.
Research Team: Prof Nagesh Kumar, Dr Satyaki Roy and Dr Sanjaya Kumar Malik
Status: [Ongoing]; project launched in 2021-22; time frame: 24 months.
Several policy reforms in India, including FTAs, have focused on attracting FDI to promote GVC engagement. This study explored electronics industry’s GVC engagement within a new analytical and methodological approach. The nature of value chain participation was assessed through in-depth analyses of related and non-related party transactions of selected foreign and indigenous companies, using firm-level financial and customs trade data. The study found that the gains from greater inter- and intra-industry specialisation and scale economies expected from FDI-led production restructuring associated with FTAs accrued predominantly to the lead firms. In-depth case studies established that in the case of both foreign-invested and indigenous firms, India was largely serving as the market for final products. Further, whatever success has been achieved under the industry-specific policies for increasing domestic value addition and export promotion was not translating into the creation of an indigenous manufacturing ecosystem; rather it was leading to forex leakages. Breaking this cycle requires the indigenous ownership of productive and knowledge assets to be built up through vertical industrial policies. The project was sponsored by the ICSSR. Dr Smitha Francis was the project director.
Two studies, IT Industry of India and Post-TRIPS Pharmaceutical Industry in India, are taken up as part of the project on Innovation, Economic Development and IP in India and China sponsored by Max Planck Institute for Innovation and Competition, Germany and Applied Research Centre for Intellectual Assets and the Law in Asia (ARCIALA), Singapore Management University, Singapore. The first study IT Industry of India highlights the role of government policy in the development of electronics industry and the ITES sector. However, it is argued that these industries have not been driven by continuous innovation. The dynamics of these industries in India was very different from their global hubs where innovation systems together with intellectual property regimes played an important role in their growth.
In the second study, Post-TRIPS Pharmaceutical Industry in India, the TRIPS compliant patent law of India as well as the performance of Indian pharma industry during the post TRIPS-era are discussed. Most of the performance indicators show an upward trend during the last two decades; but their growth rates have been falling. This makes it difficult to draw firm conclusions on the performance of the industry. However, on two indicators — R&D and patenting, there is a clear upward movement, which indicates much better performance. Both the studies are under review process for publication. The study was undertaken by Dr. Reji K. Joseph, Associate Professor, ISID and Prof. Biswajit Dhar, IPR Chair Professor, Jawaharlal Nehru University, New Delhi.
- XV Annual Conference of the Knowledge Forum: Technology and Economy, December 16, 2022
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- Adoption of Industry 4.0 Technologies in India’s Start-up Ecosystem, Sanjaya Kumar Malik, WP262, February 2023
- For Whom the Bell Tolls: Inclusive Innovation and Innovation Policy, WP261, January 2023
- Unlocking India’s Potential in Industrial Revolution 4.0: National Innovation System, Demography, and Inclusive Development, Nagesh Kumar, WP249, July 2022
- Industry 4:0: Some Conjectures on Employment and Technology Diffusion, Satyaki Roy, WP241, January 2022
- Foreign Direct Investment and Innovation activities in Indian Manufacturing Industries, Sanjaya Kumar Malik, WP224, April 2020
- India and Industry 4.0, WP218, January 2020
- FDI in R&D in India: An Analysis of Recent Trends, Reji K. Joseph, WP209, June 2019
- Lakshmi Machine Works and Sectoral System of Innovation in India’s Spinning Machinery Manufacturing Sector, Sanjaya Kumar Malik, WP204, November 2018
- Trade Liberalisation, Technology Import and Industrial Productivity: Evidence from Indian Manufacturing Firms, R. Rijesh, WP203, October 2018
- Pharmaceuticals, Product Patent and TRIPS Implementation, WP191, March 2016
- FDI, Technology Transfer and Payments for Know-How: A Case Study of Automobile Sector, Swati Verma, WP190, March 2016
- Post-TRIPS Contribution of Domestic Firms to Pharmaceutical Innovation in India: An Assessment, WP189, March 2016
- Intellectual Property Rights and Innovation: MNCs in Pharmaceutical Industry in India after TRIPS, WP170, November 2014
- Technological Upgrading, Manufacturing and Innovation: Lessons from Indian Pharmaceuticals, WP162, February 2014
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- Sanjaya Kumar Malik, Lakshmi Machine Works and Sectoral System of Innovation in India’s Spinning Machinery Manufacturing Sector, WP204, November 2018, Sanjaya Kumar Malik, WP204, January 1970
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- Dinesh Abrol, Nidhi Singh, et. al., Pharmaceuticals, Product Patent and TRIPS Implementation, WP191, March 2016, WP191, January 1970
- Dinesh Abrol and Nidhi Singh, Post-TRIPS Contribution of Domestic Firms to Pharmaceutical Innovation in India: An Assessment, WP189, March 2016, WP189, January 1970
- Harnessing Industry 4.0 for India’s Development: Opportunities and Challenges, PB#21-04, December 2021
- China Proposes Draft of Regulations for Big Tech Platform Companies, M M K Sardana, DN2020/13, November 2020
- FTAs and Export Competitiveness: Policy Lessons from a Decade of WTO-plus Tariff Liberalisation, Smitha Francis, DN2020/12, October 2020
- Preparing Workforce for Industry 4.0 through Education 4.0, M.M.K. Sardana, DN2020/06, July 2020
- Regulating Artificial Intelligence and its Application in Development of Autonomous Weapon Systems and Strategic Positioning of India, M.M.K. Sardana, DN2020/01, January 2020
- Catching-Up in the Digital Economy: The Need for Rapid Policy Evolution, Smitha Francis, DN2019/01, February 2019
- India Must Develop AI Technology for Future Economic and Strategic Security, M.M.K. Sardana, DN2018/09, November 2018
- Formalising the Indian Economy on the Wings of Demonetisation, GST and Technology, M.M.K. Sardana, DN2018/02, February 2018
- Scenario of Handheld Phone Market in India, M.M.K. Sardana, DN2018/01, January 2018
- Mission Mode Approach to Prepare India for the Fourth Industrial Revolution, M.M.K. Sardana, DN2017/08, August 2017
- Evolving Economic Thought to Include the Impact of Technology in Economic Development and Economic Theory Overcoming the Limitation Set by the Analytical Approach, M.M.K. Sardana, DN2017/05, May 2017
- Inevitable Lay Offs in IT Sector, M.M.K. Sardana, DN2017/04, April 2017
- Who will Gain from the National IPRs Policy, Dinesh Kumar Abrol, PB#01, June 2016
- National IPR Policy and Innovation, Reji K. Joseph, PB#01, June 2016
- The influence of non-R&D channels on innovation in a developing economy: an empirical analysis in the context of India, Seenaiah Kale, International Review of Applied Economics, 36(2), 205-221, July 2022
- India’s Automobile and Textile Industries in Global Value Networks: An Assessment, in Teipen, C., Dünhaupt, P., Herr, H., Mehl, F. (eds), Economic and Social Upgrading in Global Value Chains, , Parveen Jha, Palgrave Macmillan, January 2022
- Innovation, Patents, and Competition in Modern Agriculture: A Case Study of Bayer and Monsanto Merger, Reji K. Joseph, The Antitrust Bulletin. March 09, March 2021
- Digital Transformations and Structural Exclusion Risks: Towards Policy Coherence for Enabling Inclusive Trajectories, Smitha Francis, in Keshab Das, Bhabani Mishra, Madhabananda Das (Ed.) The Digitalization Conundrum in India: Applications, Access and Aberrations, Springer, Singapore, March 2021
- Trade Liberalisation, Technology Import, and Indian Manufacturing Exports, R. Rijesh, Global Economic Review: Perspectives on East Asian Economies and Industries Volume 49, 2020 - Issue 4, pp. 369-395, July 2020
- Standard Essential Patents and FRAND Licensing: A View from India, Reji K. Joseph, Biswajit Dhar , in Kung-Chung Liu and Reto M Hilty (Eds) SEPs, SSOs and FRAND: Asian and Global Perspectives on Fostering Innovation in Interconnectivity, Routledge, London, March 2020
- Does Innovation Enhance Productivity in Case of Selected Indian Manufacturing Firms, Seenaiah Kale, Badri Narayan Rath , The Singapore Economic Review, Vol. 64, No. 5, December, pp. 1225–1250 , December 2019
- India’s Information Technology Industry: A Tale of Two Halves, Reji K. Joseph, Biswajit Dhar , in Kung-Chung Liu and Uday S Racherla (Eds) Innovation, Economic Development, and Intellectual Property in India and China: Comparing Six Economic Sectors, ARCIALA Series on Intellectual Assets and Law in Asia, Springer, Singapore, pp. 93–117, November 2019
- The Challenges, Opportunities and Performance of the Indian Pharmaceutical Industry Post-TRIPS, Reji K. Joseph, Biswajit Dhar , in Kung-Chung Liu and Uday S Racherla (Eds) Innovation, Economic Development, and Intellectual Property in India and China: Comparing Six Economic Sectors, ARCIALA Series on Intellectual Assets and Law in Asia, Springer, Singapore, pp. 299–323, November 2019
- Does Innovation Matter for Total Factor Productivity Growth in India: Evidence from ARDL Bound Testing Approach, Seenaiah Kale, Badri Narayan Rath , International Journal of Emerging Markets, Vol. 13, No. 5, pp.1311–1329, November 2018
- Restrictive IPR Conditions and Technology Transfer from FDI: Policy Concerns in Indian Context, Swati Verma, NLUA Law and Policy Review, Special Issue, Vol. 3, No. 3, July 2018
- Innovation-Consolidation Nexus: Evidence from India’s Manufacturing Sector, Beena Saraswathy, in N S Siddharthan and K Narayanan (Eds) Globalisation of Technology, Springer, pp. 183–201, May 2018
- TRIPS and Indian Pharma Industry, Reji K. Joseph, in Ernst Ulrich Petersmann, Girish Kumar, and Harsha V Singh (Eds) India and WTO: Law, Economics and Politics, Routledge., September 2017
- Patents, Foreign Capital and New Drugs in India after TRIPS, Dinesh Abrol, Sivakami Dhulap, Malini Aisola and Nidhi Singh, in the Proceedings of 14th Globelics Conference Proceeding, Padjadjaran Press, Faculty of Law of Universitas, Padjadjaran, May 2017
- Political Economy of India’s Engagement with WTO: An Analysis in the Context of Amendment of India’s Patents Act, Reji K. Joseph, International Journal of South Asian Studies, Vol. 7, No. 1, pp. 35–49 (back volume publication for January-June 2014), April 2017
- FDI and National Innovation System: Experiences of India and China, Reji K. Joseph, in Girish Kumar (Ed) Globalisation and India’s Innovation System: A Creative Destruction, Mahatma Gandhi University, Kerala, April 2017
- Understanding the Diffusion Modes of Grassroots Innovations in India: A Study of Honey Bee Network Supported Innovators, Dinesh Abrol and Ankush Gupta , in Mammo Muchie et al. (Eds) Informal Sector Innovations: Insights from the Global South, Routledge, London, July 2016
- The Wrong Incentive: The National Intellectual Property Rights Policy Must Be Opposed, Dinesh Abrol, Economic & Political Weekly, Vol. 51, No. 24, June 2016
- Intellectual Property Protection, Innovation and Medicines: Lessons from the Indian Pharmaceutical Industry, Dinesh Abrol, in Lakhwinder Singh, K J Joseph, and Daniel K N Johnson (Eds) Technology, Innovations and Economic Development: Essays in Honour of Robert E Evenson, Sage Publications, India, USA and Singapore, pp. 272–310., November 2015
- Building of Health Innovation Systems, Dinesh Abrol, T Sundararaman, Harilal Madhavan, and K J Joseph, in Jose E Cassiolato and Maria Clara C Soares (Eds) Health Innovation, Equity and Development, E-papers Services Editorials, Rio de Janeiro, Brazil, pp. 145–172, May 2015
- Local Innovation and Production Systems in Indigenous Medicine, K J Joseph, Dinesh Abrol and Harilal Madhavan, in Jose E Cassiolato and Maria Clara C Soares (Eds) Health Innovation, Equity and Development, E-papers Services Editorials, Rio de Janeiro, Brazil, p 237–266., January 2015
- Pro-poor Innovation-making, Knowledge Production and Technology Implementation for Rural Areas: Lessons from the Indian Experience, Dinesh Abrol, in Shyama V Ramani (Ed), Innovation in India: Combining Economic Growth with Inclusive Development, Cambridge University Press, December 2014
- Mobilising for Democratisation of Science in India: Learning from the PSM Experience, Dinesh Abrol, Journal of Scientific Temper, NISCAIR, Delhi, Vol. 2, No. 1-2, pp. 10–32, October 2014
- Pro-poor Innovation-making, Knowledge Production and Technology Implementation for Rural Areas: Lessons from the Indian Experience, Dinesh Abrol, in Shyama V Ramani (Ed), Innovation in India: Combining Economic Growth with Inclusive Development, Cambridge University Press., October 2014
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- When Grassroots Innovation Movements Encounter Mainstream Institutions: Implications for Models of Inclusive Innovation, Dinesh Abrol, Mariano Fressoli, Elisa around, Adrian Smith, and Rafael Dias, Innovation and Development, Vol. 4, No. 2, pp. 277–292. , July 2014
- Understanding the Diffusion Modes of Grassroots Innovations in India: A Study of Honey Bee Network Supported Innovators, Dinesh Abrol and Ankush Gupta, African Journal of Science, Technology, Innovation and Development, Vol. 6, No. 6, PP. 541–552, January 2014
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