Research & Development for global competitiveness INDIAN COMPANIES GOING GLOBAL Research & Development for global competitiveness K.Vijayaraghavan.CMC.,FIMC Director, Sathguru Management Consultants. Visiting Faculty, Cornell University. vijay@sathguru.com

Indian technology development mission - Historical reality Public research – Quest for self reliance. - Military, health care, agriculture … Socialist economic policy within a democratic political framework….. Central control.. State production – control of private production. No focus on technology transfer. Change of direction in 1991…

Economic growth. 14 years of successive growth phase Successive upward movement in technology application Access to global technologies accelerate “in-licensing” in several sectors. Engineering, chemicals, life science products, mining and metals.. significant technology up gradation. Combined efforts of public and private sector.

R&D -GLOBAL INTEGRATION RESEARCH & TECH TRANSFER IN INDIA EARLIER Academic oriented - Non-interactive - internally focussed TODAY Interactive - market oriented - Globally focussed

The chemistry of research and innovation. R&D spending triggers innovation Innovation stimulates economic growth Pace of innovation determines rate of return Collaborative partnerships ensure high pace of innovation . . .

SEVERAL GLOBAL PLAYERS GAIN FROM THIS MISSION OPEN DOOR FOR GLOBAL PLAYERS FOR RESEARCH & COMMERCIALISATION FORD, GE, MICROSOFT, ASTRA ZENECA, MONSANTO, GSK, PFIZER..

PERCEPTION OF RESEARCH COLLABORATIVE OPPORTUNITY IN INDIA Macro View- Bringing in scarce “knowledge” &“Capital” for creating wealth by adding to the GDP. Micro View- Maximising shareholder value. Consumer View- Bringing quality products and “new” technology MNC View- Accessing the vast potential of Indian market & Indian talent.

INTELLECTUAL PROPERTY Historical reverence for intellectual property - GURU-SHISHYA OBLIGATION Transitional deviations in the past Strong urge for global harmonization Legal, regulatory & commercial framework - WTO – TRIPS Compliance.

Emerging trends in research models. Indian S&T strength. Continued strong focus on research for public good. Enabling mechanisms Research models – cross country, cross functional. Contract and collaborative research.

RESEARCH AND DEVELOPMENT PARTNERSHIP IN INDIA – EVOLVING MODEL PUBLIC RESEARCH CENTERS INDUSTRY MAJORS INDUSTRY JUNIORS Senior-Junior Symbiotic relationships Public private partnerships

Options in research partnering, product Development & delivery Public Public Private Private Senior – Senior Senior - Junior Public private Private Public

Public - Private Several initiatives Indian and global public research institutions undertake successful tech. Transfer in biological, physical and material sciences to private sector.

Private - Public Donation of technologies from private sector to public institutions for public good. Tax incentives for such donation – abundant in the west… A model for India to explore??

Private - Private Senior – Senior partnerships – vaccine consortiums – seed sector consortiums – consortiums for embedded software. Senior – Junior consortiums – sub-licensing options – outsourcing – contract research..

Enhanced level of risk taking in research. Positive change to risk averse mindset. 80s and 90s- demonstrate Indus entrepreneur success in silicon valley – 6% of total value come from indus entrepreneurs. Many University spin-offs. India joins global consortium with significant funding and long term commitment …. (telecom, public health(AIDS), genomics, environment)..

Challenges for excellence in Public research? Debate on where to invest public funds for research. Challenge of sustained supply of human capital in the public system?? Addressing ownership issues for publicly funded research. Public entrepreneurship – spin-off opportunities – venture capital avenues. Bringing mindset changes - best practices.

The future as we perceive India will be among the major out-licensing destinations. Focus on cutting edge research – telecom, aerospace, information technology applications, agriculture, human health, electronics.. Global collaborative research will be the focus. Public research will complement private research with resources and basic research capabilities. Global investment will drive research for global good from INDIA.

What will this require? This will require successful integration of good science and best management practices by responsive and accountable organizations.

Role of Management Consultants MC plays a significant role in bringing best practices in technology management. Interventions relate to Research priority setting & investment analysis. Outsource – in-house decisions. Research services and Technology marketing. Seamless integration - post merger & takeover. Balancing cross country cultural, legal, regulatory and management practices. Exit or GO decisions.

Conclusion INDIA will play a significant role in promoting ethical, responsible and value based technology management services that will drive economic growth. Management Consultants have significant potential to drive this growth.