1. K J Joseph & Dinesh Abrol
Science Technology and Innovation Policies in India: Changing Perspectives and Missing links
K J Joseph & Dinesh Abrol

2. An Overview Introduction Evolution of S&T policies
Focus on Self–reliance (1947 to c1980)
Scientific Policy Resolution (1958)
Internal liberalization (c1980 to-1990)
Technology Policy Statement, 1983
Globalization Phase
Science and Technology Policy 2003
S&T Performance: Empirical overview
A critical Appraisal

3. Focus on self–reliance (1947 to c1980)
The background
Colonial experience & and transforming an economy that has been stagnant for a century
Export pessimism and import substitution
Soviet performance and memories of great depression
Development strategy by Nehru (first prime minister), Gandhi and the Orthodox school
Other policies (eg, industrial, trade, fiscal) also had significant bearing on science and technology

4. Focus on Self–reliance (1947 to c1980)
Scientific Policy Resolution (1958)
“The wealth and prosperity of a nation depend on the effective utilization of its human and material resources through industrialization. The use of human material for industrialization demands its education in science and training in technical skills. Industry opens up possibilities of greater fulfillment for the individual. India's enormous resources of man-power can only become an asset in the modern world when trained and educated.”
Friedrich List : National System of Political Economy 1841
“ the present state of nations is the result of the accumulation of all discoveries, improvements perfections ….. of all generations which have lived before us; they form the intellectual capital of the present human race,and every separate nation is productive only in proportion to which it has known how to appropriate these attainments of former generations and to increase them by its own acquirements”

5. Focus on Self–reliance (1947 to c1980
SPR (1948) “In industrializing a country, heavy price has to be paid in importing science and technology in the form of plant and machinery, highly paid personnel and technical consultants. An early and large scale development of science and technology in the country could therefore greatly reduce the drain on capital during the early and critical stages of industrialization” – Emphasis of self reliance
Friedrich List- Infant industry protection

6. Focus on self–reliance (1947 to c1980)
The SPR (1948) interalia aimed
to foster, promote, and sustain, by all appropriate means, the cultivation of science, and scientific research in all its aspects - pure, applied, and educational;
to ensure an adequate supply of research scientists of the highest quality
to encourage, and initiate programs for the training of scientific and technical personnel, on a scale adequate to fulfill the country's needs
to encourage individual initiative for the acquisition and dissemination of knowledge, and for the discovery of new knowledge, in an atmosphere of academic freedom;
to pursue and accomplish these aims by offering good conditions of service to scientists and according them an honoured position, by associating scientists with the formulation of policies, and by taking such other measures as may be deemed necessary from time to time.

7. Focus on self–reliance (1947 to c1980)
In the context of SPR (1948)
Policy initiatives & institutional arrangements to promote research in atomic energy, defense, space & electronics and areas
National wide net work R&D labs with regional and national focus under the CSIR
Setting up of IITs, large number of engineering colleges and universities for generating human capital
Promotion of agricultural research to usher green revolution and achieve self sufficiency in food
The Indian patent act on 1970 facilitated reengineering through process patent instead of product patent
Liberal approach to FDI and foreign technology in the initial years and later moving towards a much restrictive regime

8. Focus on Self–reliance (1947 to c1980)
An array of support measures (institutional & fiscal)
Setting up of National Research Development Corporation (NRDC), engaged in licensing of indigenous technologies to industry and also makes available, comprehensive know-how documents on the licensed technology to the potential user
Accelerated depreciation allowance on plant and machinery used for indigenous technology development,
Customs duty exemption on imported equipment;
Price control exemption on domestic R&D based Bulk Drugs;
National Awards for Outstanding R&D Achievements
Income Tax Relief on R&D Expenditure; Donations to Scientific Research Organisations;
Tax holiday to Commercial R&D Companies; Customs and excise duty Exemption to Non‑Commercial Research Institutions (SIROs);; Excise Duty Waiver on Patented Products.

9. Focus on Self–reliance (1947 to c1980)
Major achievements
In Atomic Energy, space defense and others
Self sufficiency in food production
Establishment of a broad-based industrial structure
R&D mostly by pubic sector units and limited role for the private sector
While major achievements in Big science
“Regrettably, all these achievements have not found proportionate reflection in the well-being of poor”- Prime minister in 1977
Also, import-substitution – self-reliance and associated bureaucratic controls has had its adverse impact on the growth performance of the economy

10. Internal liberalization (c1980 to-1990)
Technology Policy Statement (TPS), 1983
“Political freedom must lead to economic independence and the alleviation of the burden of poverty. Our own immediate needs in India are the attainment of technological self-reliance.. Technology must be viewed in the broadest sense…Our directives must clearly define systems for the choice of technology, taking into account economic, social and cultural factors along with technical considerations; indigenous development and support to technology; acquisition of technology through import and its subsequent absorption, adaptation and upgradation; ensuring competitiveness;
Establishing links between the various elements concerned (NSI?) with generation of technology, its transformation into economically utilizable form - the sector responsible for production, financial institutions concerned with the resources needed for these activities, and the promotional and regulating arms of the Government.

11. Internal liberalization (c1980 to-1990) Liberalization Phase I & TPS 1983
The basic objectives “Will be the development of indigenous technology and efficient absorption and adaptation of imported technology appropriate to national priorities and resources.” It aimed inter alia to:
Attain technological competence and self-reliance; Building up of human capital
provide the maximum gainful and satisfying employment to all strata of society, with emphasis on the employment of women and weaker sections of society;
use traditional skills and capabilities, making them commercially competitive;
develop technologies which are internationally competitive, particularly those with export potential;
reduce demands on energy, particularly energy from non-renewable sources;
ensure harmony with the environment, preserve the ecological balance and improve the quality of the habitat; and

12. Internal liberalization (c1980 to-1990)
Different initiatives under TPS (1983) included
The Program Aimed at Technological Self Reliance (PASTER)- now known as Technology development and demonstration program (TDDP) aims at technology adaptation by research design and development executed by the industry and overseen by the exports from Lab/university: 150 projects were supported- 65 completed, 15 patents filed
Technology Absorption and Adaptation Scheme
National Register on Foreign Collaboration..
S&T for Weaker sections.., S&T for Rural Development
Science & Technology Entrepreneurship Park (STEP) –1984 jointly with financial institutions, state Govts and academic institutions – 15 such STEPs
Incentives for in-house R&D and technology development to industry
Establishment of TIFAC

13. Globalization Phase (Since 1990s)
India Embarked on Globalization with a vibrant National Innovation system evolved over the years and its performance since 1991 has to be seen against this background
New Industrial Policy of 2002 and
Science and Technology Policy 2003
During the 50 years since Independence, India has been committed to the task of promoting the spread of science. The key role of technology as an important element of national development is also well recognized. There is today a sound infrastructural base for science and technology -research laboratories, higher educational institutions and highly skilled human resource.
Major national achievements include very significant increase in food production, eradication or control of several diseases and increased life expectancy

14. Globalization Phase (Since 1990s)
objectives included
The alleviation of poverty, enhancing livelihood security, removal of hunger and malnutrition, reduction of regional imbalances,generation of employment, by using scientific and technological capabilities along with traditional knowledge pool (inclusive growth).
To vigorously foster scientific research in universities and other academic, scientific and engineering institutions; and human capital formation
To promote the empowerment of women in all science and technology activities and ensure their full and equal participation.
To use the potential of modern S&T to protect, preserve, evaluate, update, add value to, and utilize the traditional knowledge base

15. Globalization Phase (Since 1990s)
Objectives..
To ensure, in an era in which information is key to the development of science and technology, access to information at affordable costs;
To establish an IPR regime which maximises the incentives for the generation and protection of intellectual property by all types of inventors.
To promote international S&T cooperation towards achieving the goals of national development and security, and make it a key element of our international relations.
This Policy, reiterates India's commitment to participate as an equal and vigorous global player in generating and harnessing advances in science and technology for the benefit of all humankind.

16. Trends in Technology Import

17. Globalization (Post 1991) Different initiatives included
Technopreneur Promotion Program (TePP) jointly by TIFAC (DST) and DSIR in 1998 to tap the innovation potential by providing support to individual innovators for converting an original idea into working prototype : 50 projects completed 25 commercialized domestic patents to 10 US patents for 3.
The Program Aimed at Technological Self Reliance (PASTER)- now known as Technology development and demonstration program (TDDP) aims at technology adaptation by research design and development executed by the industry and overseen by the exports from Lab/university: 150 projects were supported- 65 completed, 15 patents filed -
National Innovation Foundation (2000) promoting grass root innovations traditional knowledge systems for poverty alleviation & employment generation -

18. Globalization (Post 1991) Different initiatives Contd..
Home grown technology Program of TIFAc (1993) to achieve international competitiveness – by improving the existing products
Science & Technology Entrepreneurship Park (STEP) –1984 jointly with financial institutions, state Govts and academic institutions – 15 such STEPs
Technology Development Board (1996) providing financial assistance for innovation from the fund raised through the cess on technology import
The New millennium India Technology Leadership Initiative (NMITLI) –2000 to enable Indian industry to attain global leadership in selected areas

19. India currently has bilateral S&T cooperation agreements with following countries
Australia;Argentina;Armenia;Bangladesh; Belarus; Brazil; Bulgaria; Canada; China; Cuba; Egypt; European Union; France; Germany; Hungary; Indonesia; Iran; Israel; Italy; Japan;Korea(DPR);Kazakhstan;Lao;Malaysia;Mauritius;Mexico;Mongolia;Mozambique; Myanmar;Nepal; Oman;Peru;Philippines; Poland; Portugal; Republic of Korea;Romania; Russia; Singapore; South Africa; Sri Lanka; Sudan; Switzerland; Syria; Taiwan; Tajikistan;Thailand; Trinidad & Tobago; Tunisia; Ukraine; United Kingdom; United States; Uzbekistan; Vietnam;Venezuela;Yemen,Zambia.

20. In addition to Bilateral there are initiatives at Multilateral level
Multilateral Programmes are being implemented under South Asian Association for Regional Cooperation (SAARC); BIMSTEC (Bay of Bengal Initiative for Multi-sectoral Technical and Economic Cooperation); and IOR - ARC (Indian Ocean Rim - Association for Regional Cooperation), STEPAN; UNESCO;TWAS (Third World Academy of Sciences); and IBSA(India,Brazil,SouthAfrica) .

21. Recent Developments
India emerged as the second fastest growing economy
Major player in the field of IT, Auto Pharma and others
Foreign exchange reserve of $200 billion from $ 400 Mill in 1991
Phenomenal increase in the Outward investment by Indian companies ($212 mill in 1995 to $8181mill in 2006)
Preferred location for outsourcing of both commodity production and knowledge production (R&D outsourcing)
Unprecedented increase in the inflow of FDI
Increased Patenting in the US (22 in 1991 to 363 in 2004)
Much more….

22. These achievements are indeed are a delayed return to the National innovation system built up over the years…
The crucial issue is; are there enough initiatives under globalisation to strengthen the NIS such that these achievements could be sustained?
The answer appears to be a qualified No…
Why????

23. Aspiring to be the Global Player by R&D in the backseat
Aspiring to be the Global Player by R&D in the backseat? Trend in R&D as % GDP

24. R&D in India- Compared

25. R&D Expenditure by Major Scientific Agencies under the Central Government (%)

26. Preferred location for R&D Outsourcing
Outsourcing, if harnessed properly, could be beneficial. But could also undermine the NSI and its strengths
Are there initiatives to understand its implications under the heightened competition for skilled manpower?
How to mitigate the plausible adverse impacts?
Are there policies and programs to take advantage of its spillover benefits?
Even the policy announced in 2003 keeps a silence…

27. STI under liberalization: A Critical Appraisal

28. External liberalization & the patterns of corporate technological accumulation
Decline in the breadth & depth of imported know-how is directly related to the loss of control over markets.
decline of independent TCs
increase of Tcs under the JV mode
lump sum payments increased by many times
low technology content of agreements continuing
increase in the import of finished goods, SKD/CKD imports, imports of components & capital goods
Merger & acquisitions linked FDI increased during the phase of external liberalisation.
External liberalisation amidst the chorus of TINA; lack of discipline in respect of borrowings, import bill, fiscal deficit & public sector management; saturation of untapped demand, search for new growth avenues; Opening up through total deregulation of technology & goods imports;easy entry for FDI, deregulation of FDI; governmental withdrawal from the development of manufacturing; governmental withdrawal from the creation of infrastructure and basic industries.
Only 231 Tcs out of 1248 in 2000;

29. Technology assimilation & in-house R&D performance
Share of industrial development in total R&D in pvt. sector industry fell from 71.3% in to 33.9% in 96-97
More than two third of firms in basic chemical industry passive & vertical integration had a negative impact on the technology investments; medium sized firms invest much more in in-house R&D.
Composition of RDD changing in engineering industry; CDOT will focus on subcontracting in R&D and on patents and not on technology development
Overall trends in the development of enterprise R&D; Private sector R&D
Private R&D intensity also declining ( 0.83 in 81, 0.70 in 86, 0.61in 91, 0.60 in 97)
Private sector R&D manpower ; R&D: Auxiliary: Adm
Nature of publicly directed funding for enterprise RDD

30. Technology accumulation & exports
Technology licensing negatively related to exports
MNC affiliation matters to the increase in exports
No improvement in technology intensive export-import ratios
Global integration of industrial & technology investments

31. Denationalization of network organizers
MNCs successfully position themselves as network organizers in information, electronic and mechanical engineering
Failure of improvement in the productivity, efficiency & growth of the Indian private sector (Siddarthan, Nagesh and others) in the information, electronic and mechanical engineering
Industrial innovation through public sector undertakings; impact on PSU R&D; share of PSU R&D declined, PSU R&D intensity came down
Public sector weakened as network organizer in infrastructure related industries & newly emerging technology systems
No technology-induced increase in productivity (Basant, Srivastava, Balakrishnan, Das)
Siddarthan 2004 finds no evidence for Indian firms improving productivity, technical efficiency & growth during liberalisation. Total factor productivity growth lower in 90s (Das 200). Average efficiency levels declined over 91-96, MNE affiliation significant in explaining efficiency (Ray 2003, Goldar, 2003). Siddarthan 2004 concludes the IEG study by stating that the main gainers have been MNEs & their affiliates, domestic firms employing non-equity route have done well, better results when the gap was narrower.
Inadequate investments in the manufacturing & quality systems. Indigenous R&D for technology assimilation is absent from the conduct of large enterprises (Basant & Chandra, 1997), Procurement preferences withdrawn for the services of national consulting, engineering & design organisations. Runaway FDI investment in R&D, increase in the home base enriching FDI in R&D; Indian private sector firms failing to emerge as network organizers in new industries, Public funds for indigenous technology development discouraged (7.20 Crores in 2001), little funding for the enhancement of technology transfer efficacy (1.20 Crores) too many projects, sub critical funding, Level of public funding for enterprise R&D is extremely low; Funding in the form of grant only as small part, more reliance on soft loans

32. Utilization of Incentives by Private Sector
Efficiency of Enterprise Sector IS; Fields/Ranks India China Israel
R&D Implementation
Pvt. Sector Inv in R&D
Research Co-operation
Tech. Sophistication

33. Take pharmaceutical and automobile industries;
Gains not due to liberalization but due to the continuation of selective protection
Take pharmaceutical and automobile industries;
Both were beneficiaries of calibrated protection; external liberalization was put on hold till ,
Performance requirements insisted; sectoral reservation continued
Public sector firms used to create the capabilities that have spun off individuals who have come into private sector & have benefited both the industries in terms of human resources & backward linkages

34. Costs of emerging tensions for the IS
New patterns of technological integration reduce the private risks & costs of introduction of new technologies for the large firms only by enhancing the social costs and risks for the Indian people that are already quite well manifest in the forms of technological fragmentation, import dependence, unsustainable production and shift into luxury consumption.
Loss of autonomy in decision-making
Diseases of the poor remain neglected; no increase in priority for the diseases of poor. Degenerative disorders , global diseases (TB), cancer, diabetes become the priorities for publicly funded pharmaceutical R&D organizations, or supporting the firms participating in the drug discovery R&D & outsourcing activity with bioinformatics software.
Pressure from the corporate world on the government to enable the existing public & private actors IS to join hands freely with the foreign companies is growing

35. Changes in the Sectoral Contribution of National Expenditure on R&D(In Percent)
Year
Central Govt. including Public Sector & Higher Education
State Sector
Private Sector
79.95
7.87
12.18
74.96
8.63
16.41
71.2
8.5
20.3%
(estimated)
72.0
9.0
19.0

36. Contribution of public and private sector industry
A trend of stagnation evident in the proportion of national R&D expenditure incurred by the public sector around the figure of 10% between & 94-95, which in is down to the meager figure of 4.5%. For public sector, only 0.26% of STO was spent on R&D in
Although the share of private sector industry financed R&D in % terms of total investment on R&D has risen from to 20.3, but the private sector R&D intensity is not rising.
R&D intensity of the private sector has been only declining (from 0.83 in 81 to 0.70 in 86 to 0.61in 91 to 0.60 in 97 to 0.59% in )
While the industry spent 0.38% of GNP on R&D during , its current expenditure on R&D is down to 0.20% of GNP.

37. Publicly funded civilian R&D during liberalization
Public investment declining for the mission oriented civilian technology development, weak technological infrastructure (NSF, 95)
Nature of civilian socio-economic goals in the efforts being made for BT& IT
Impact of self-financing paradigm & global platform orientation on technology development & transfer and other aspects suvh as ECF and linkages with industry & R&D capabilities
Greater market orientation of civilian R&D institutions, abandoning of technology missions.
Decline in the institutional coherence of civilian R&D in publicly-funded R&D institutions
Attrition in the breadth and depth of civilian institutional R&D sector capabilities.
Civilian R&D institutions depending increasingly on the foreign firms for legitimization & funds.
(Absence of goals like increase in land / labour productivity, social justice, governance and decentralisation) & energy efficiency, sustainable agriculture, plant-based health systems.

38. R&D Agencies & their institutions & institutions of socio-economic sector
Of all the S&T sectors in the country, the R&D sector is the second largest in terms of publications output in S&T
Of all the socio-economic ministries in the R&D sector, the Health Ministry contributed 46.7% publications in
Of all the R&D agencies, CSIR has been the largest contributor, followed by DAE, DST, ICAR, DRDO, DOS, ICMR & DBT.
Nearly three-fourth of the R&D sector publications output continues to be published in low impact journals.
Declining trend in publications share & activity index of the R&D sector in agricultural sciences
Collaborative research profile of the socio-economic ministries is better, compared to R&D agencies.
Priority areas for research of various agencies did not change significantly during the period between and
Bulk of research output in the industry sector is published in low impact journals.

39. Patenting Activity
There were 1051 patents filed by India during the period between , 669 were India owned organisations, 273 were Foreign owned patenting organisations & rest 109 belonged to unassigned category
Pharma sector patents a key area, process patents were the dominating patenting category; from 1995, IMDs related product patents have too appeared.
Only 8 organizations had more than 10 patents and accounted for 519 patents (80%); CSIR accounted for 378 (57%) of the IOP, Texas Instruments, Hoechst, GEC, IBM dominated the FOP
CSIR: No portfolio planning; piperine story,4% of patents alone have been able to earn a meagre amount, huge costs involved in filing patents
IMDs are yet a priority of only Ranabaxy, IPA is uncertain & wants the change to wait in this regard.

40. FDI in R&D sector
R&D services has emerged as the third segment in Export of IT services, it occupies a share of 18.4% of software exports accounting for 2.3 billion US $
R&D investment worth of $1.13 billion has flowed into India during
22980 R&D workers consisting of scientists, software engineers & other support staff are working in this segment
Availability & price of work count with MNCs; Indian scientist costs 10,000 dollars per year, 1/10 of the costs abroad in US.
The bulk of R&D investment entered during period, computer based R&D dominates , while drugs, auto, chemicals, agro have followed
Nearly half the FDI Cos are cases of relocation of in-house R&D in home country to offshore location
56% of FDI Cos prefer to work alone in India, with 100% foreign equity without local partner in equity.
No reporting system for the R&D based FDI in the country; No govt. agency to monitor these organizations; not many attract income tax;safety, security & benefit sharing arrangements related issues
Non-open science, spillovers management, would not happen automatically

41. Policies and institutions matter
Structural changes
impact on user-producer interactions
connection with home market
Connection with interactive learning

42. Science, Technology & Economic Growth: Before and After
Shifts in the STI policy & practice
influenced by the strategic requirements of political-bureaucratic order to bring about an alignment between the world of S&T and the world of industry-market;
interests of the industry-market order are not a new influence; even earlier it had much success in shaping the world of S&T priorities.
The subject of how STS scholars have viewed the era of economic reforms in respect of S&T policy shifts is vast and varied. It can be discussed in terms of the conceptions of S&T policy (Strategic thinking on the role of R&D in national development); Development conceptions; Conceptions of S&T; Conceptions of impact of S&T on development, Nature of and participation of S&T community interests, industry and other societal interest in the dialogue on public policies for S&T. It has been discussed in terms of changes in the connection of S&T with development in terms of nature of autonomy for scientists and technologists; A linear conception of the connection dominates; Policy for science and technology (S&T), S & T for policy, S & T for market; connection of S&T with development in terms of participation of different stakeholders in policy and decision-making

43. Change in the World of S&T
The world of S&T itself has undergone a change in its ideology; changes are evident at the level of the ethos of S&T leadership, relative power and interests of S&T workers in the prevailing organizations; the outcome (s) of new alignment are more myopic than before in terms of the achievement of coherence and flexibility in the Indian NSI.

44. Changes in the culture of innovation
orientation of the changes in development priorities
direction of the changes in policy instruments
changing nature of balance in the ethos of individuals and institutions
changing character of core constituencies
Drive towards strengthening of the connection(s) of S&T with the opportunities emerging in the outsourcing markets; declining strength of the connection (s) between home market and S&T, deregulation of technology imports, withdrawal of government procurement, weakening of the support measures for technological up gradation in respect of small producers, aggravation of the weak connection(s) of S&T with the production system of vast majority of small producers. Privatisation, self-financing and commercialisation of institutions, the emerging culture of innovation focus is now on the establishment of connection (s) by the Indian S&T with global markets that the Indian big business and elite institutions are in the process of cultivating on priority; user-producer interactions, role of home market for economic specialisation and competitiveness, fragmentation of organised markets due to technological segmentation/market segmentation, interactive learning weakened due to the deregulation, non-strategic intervention, the role of institutions is being redefined, ethos changing in favour of everyone for himself/herself, commodification and integration with the world market, quotient of alienation from the values of public interest/commitment . be these are motivations and interests as shared norms or mental models or performing bridging roles or regulative roles, constitutive as social relations of S&T and of governance, regulation, Failure of the culture of innovation in STI is clearly evident in the face of heightened experience of the Indian people with the disasters (natural & economic); even in the most advanced parts of India environmental problems, agrarian problems, problems of SMEs, village industries, unemployment, etc. are growing. STI policies have to respond to these concerns in an effective manner, Expression of lack of confidence in the governments; Sibal on biotechnology, horticultural mission, inappropriate technologies culled out from the shelf for desalination & low cost housing recycled to the politicians, reinventing of the CSIR, Chidambram benefits Indian Institute of Science and Whom in business. Public sector marginalised, foreign firms as the new nodal points in the networks of Indian S&T, donor driven NGOs becoming the hallmark of civil society organisations

45. Challenge before the S&T World
In respect of how to deal with the challenge of transformation of culture of innovation, it is posited that neither it is desirable nor it is possible to conceive the existence of total autonomy either for the world of S&T or for the communities of practitioner(s) of innovation. Particularly, if the culture of innovation is to be transformed in the democratic direction, it is certainly desirable for the state and civil society to exercise sufficient influence on the worlds of S&T and industry.

46. THANK YOU