India-Hub of R&D

There were times when Indian companies were dolling out large sums of money in importing technology. In 2006, for instance, corporate India spent 2.5 times more in paying for technological know how than in developing their own. For two years before that they paid cloths to 10 tiimes for technology/IP than for developing their own Things are changing now. As Indian companies are globalizing they realize that they should have long product pipe line. This is not possible without in house research program. Years ago Videocon for instance had a commodity approach to the market, but with the margin moving towards the high end technology differentiating market, the company has changed tack. Videocon as raised its R&D budget from 1% to 4% on its turnover. Tata group and reliance industries both are focusing on technology that might be fairly big but nobody sure when the technology will come to fruition This is clearly a long term plan and the group is spending close to Rs. 300 crore on this research. Reliance industry focuses mostly on embryonic ally and hematopoietic stem cell tissue engineering, cellbased vaccines and immunotherapy. MNCs are eyeing India as a hub of R&D activates. Microsoft has its centering Banglore. Staffed with around 60 fulltime researchers, many of them are Indians with PhDs from Top universities in the US. The innovation would never have taken root if the R&D had been done in the US. India produces around 3 lacks computer Science graduates a year. Yet, it produces only around 100 computer science Phds a small fractions of the 1500-2000 that get avoided in the US or China every year. Students here are not exposed to research from an early age, faculties are not subject to research and there is no carrier path for innovation because there is lot of fresher to get a real job. Rival China has already pulled ahead with atleast 1100 R&D center compare with less than 800 in India China also offers fiscal incentives such as tax breaks for R&D centers and SEZ provide infrastracutre for hi-tech and R&D industries. In 2006-07 just 7000 patents were granted in this country of 1.1 billion people, compared with nearly 160000 in the US. R&D India is cheaper than China. But salary in India increasing by 15% by every year. IBM India research lab do a fair share of patenting helping swell the parents records numbers every year its new dollar 100 million mobile communication research, mobile web, is the first time of the project as been driven form outside the US.