Prof D Mukhopadhyay
The 16th edition of the Global Innovation Index(GII) was released on 27th September 2023. India has retained the rank of 40 in this edition. Switzerland has retained its spot of rank 1 for the 13th year. Sweden is now in second spot, followed by the United States of America in third. The United Kingdom is fourth and Singapore enters the top 5 in fifth position. China is in 12th place followed by Japan at number 13. China is an among the ‘Upper- Middle-Income Countries’ in the top 30. The GII listed India as among the 21 economies that outperformed for a 13th consecutive year on innovation relative to the level of development. The other countries in this club are Moldova and Vietnam. India, Iran, the Philippines, Turkiye, Indonesia and Vietnam are among the economies within the GII top 65 that climbed fastest in the ranking over the last decade. India is ranked 40th and six places above the previous year’s rank. This is the first time that India is ranked within 40th in the GII and she is now the first innovative lower-middle-income economy in the world. India ranks 15th in terms of factors such as government online services, ICT services export, graduates in science and engineering, R&D-intensive global companies. The report says that India has the highest innovation quality among lower-middle-income countries. The consistent improvement in the index rankings is owing to the immense knowledge capital, the vibrant startup ecosystem, and the amazing work done by the public and private research organizations. India improved the most in three pillars: Institutions-61st, business sophistication-55th, and creative outputs-64th. As per the report, the sale of electric vehicles increased from 4% in 2012 to 14% in 2022. It also said, “…electric three-Wheeler are already booming in major markets such as India, where over half of its three-wheeler registrations in 2022 were electric.” The report acknowledged that just five economies host 80 percent of all the world’s unicorns, viz. the United States of America-54 percent, China-14 percent, India-6 percent, the United Kingdom-4 percent and Germany-2 percent.
The GII provides detailed metrics about the innovation performance of 131 countries and economies all over the world. The index was first released in 2007 and is released annually. It is published by INSEAD, Cornell University, and the World Intellectual Property Organization (WIPO), along with other institutions. The index uses 80 indicators that take into consideration a wide range of innovation, including education, political environment, business sophistication, and infrastructure.The index is based on both objective and subjective data compiled from various sources, including the World Bank, the International Telecommunication Union (ITU), and the International Monetary Fund. The GII has become an important reference for governments and businesses to measure a country’s performance on innovation. It is calculated by taking a simple average of the scores in two sub-indices, viz, the Innovation Input Index composed of five pillars and Innovation Output Index composed of two pillars. Both the pillars are foundational attributes of innovation and contain up to five indicators. Their score is computed by the weighted average method.
For many years, governments around the world are observed to have been successfully using the Global Innovation Index (GII)as a guide to improve their economy’s innovation performance and shape evidence-based innovation policies. A survey carried out by WIPO in 2022 showed 70 percent of WIPO member states were using the GII to improve innovation ecosystems and metrics, as well as it being a benchmark for national innovation policies or economic strategies. The World Intellectual Property Organisation or WIPO is a UN special agency created on 14th July 1967, came into force in 1970, headquartered in Geneva, Switzerland to promote intellectual property (IP) protection and encourage creative activity all over the world. WIPO is basically a global forum for IP policy, services, information and cooperation.
As mentioned , India achieved a rank of 40 in GII 2023, being the top spot among central and south Asian countries. She leads the lower middle-income group, performing strongly in every innovation pillar except for Infrastructure. India leads the ranking among central and South Asian economies in parameters such as human capital and research score 48, Business sophistication-57 and knowledge and technology outputs score is 22. Further, strong indicators include ICT services exports-5th, Venture capital received-6th, graduates in science and engineering- 11th and Global corporate R&D investors- 13th. India’s 40th position in the GII is a testament to her both potential as well as challenges. While the nation has made strides in various sectors, including technology and science, several factors contribute to its relatively low rank. India’s expenditure on research and development (R&D) is a mere 0.70% of her annual GDP and the same is 4 to 5% in most of the countries advanced in science and technology, such as Japan, USA, South Korea, China 2.4% US 3.45%, France, Germany, UK, Denmark, Norway etc are in the forefront of committing research and development expenditure. In most European countries, expenditure on research and development varies between 1.5 to 2.5% of their annual GDP . Japan, Republic of Korea, Israel , USA tend to spend about 4 to 6% of their annual GDP and China , the arch regional competitors of India, spends about 2.5% of its annual GDP on research and development. Mr. N R Narayana Murthy, one of the co-founders of Infosys, opined way back a year ago that India needs to spend 4-5% of her annual GDP on research and development while giving an interview to a leading newspaper on 21st July, 2022.
Low investment in R&D stifles innovation and limits the development of cutting-edge technologies. Although India has a vast pool of talent, its educational system often emphasizes rote learning over critical thinking and creativity. Reforms are needed to foster a culture of innovation and entrepreneurship from a young age. Cumbersome regulations and bureaucratic red tape hinder innovation and the ease of doing business. Streamlining processes and reducing bureaucracy is essential for encouraging innovation. The lack of collaboration is prominently visible. Encouraging collaboration between academia, industry, and government is crucial for innovation. India needs to create an environment that promotes knowledge sharing and partnership.
In order to elevate India’s position from 40th to say, the first 15 Nations ranks on the GII, several strategic measures are urgently called for. As such, India should substantially increase its R&D spending to at least 4% of its GDP, as recommended by experts. This investment should target both public and private sectors, fostering innovation across various industries. Overhauling the education system is imperative. A focus on critical thinking, problem-solving, and practical skills, along with entrepreneurship programs, can nurture a new generation of innovators. Moreover, regulators should remain more vigilant over the implementation of government rules and regulations and policies for attracting talent to higher academics by offering comparable compensation and welfare measures for the talent acquisition and retaining. It is worth mentioning, for instance, majority of private sector higher education imparting institutions do hardly even pay and compensate the faculty and teachers in terms of the 6th CPC, when the 8th CPC is knocking at the door. Innovation, research and development is possible only when the talents are treated with fairness and sustainable recognition .The government of India, its regulatory arms such as UGC, AICTE, BCI, NMCI, Ministry of Education and , provincial governments as well, should pay their attention to these issues as the ongoing situation is very precarious and detrimental to the cultivation of knowledge through persistent innovation, research and development. Of late , the Government of Sikkim has issued a notification that no institution imparting higher education in the State of Sikkim shall pay less than Rs. 30,000/ per month to an entry-level faculty.
Simplifying regulatory processes and reducing bureaucracy will make it easier for startups and businesses to operate. Streamlining patent registration and approval processes can also stimulate innovation. Establishing innovation hubs and clusters that facilitate collaboration between academia, industry, and government will promote knowledge sharing and joint projects. Tax incentives, grants, and subsidies should be provided to companies and institutions actively engaged in R&D activities. This will encourage greater participation in innovation-driven endeavors. India needs to strengthen her IPR protection, providing innovators with the security and recognition they need to invest in groundbreaking projects. Actively seeking international collaborations and partnerships can expose Indian innovators to a global perspective, fostering cross-cultural innovation. India’s 40th rank in the GII reflects both its potential and the hurdles she faces on the path to innovation and economic prosperity. With increased investment in R&D, educational reforms, streamlined regulations, and a culture of collaboration, India can rise from its current status as a ‘Lower-Middle-Income Country’ to join the league of ‘Upper-Middle-Income Nations and and eventually to be bracketed within the ‘High-Income Group’ Nations such as Switzerland, Sweden, USA and so on.
The World Innovation Index (WII) is a comprehensive tool developed by the World Intellectual Property Organization (WIPO) to measure and assess the innovation performance of countries across the globe. The index provides insights into the capabilities and outcomes of nations in terms of innovation, allowing policymakers, researchers, and businesses to make informed decisions. The WII is calculated using a structured methodology that comprises several components, and India plays a significant role in this process. The World Innovation Index is a valuable tool for assessing and comparing the innovation capabilities of countries worldwide. India, as a significant player in the global innovation landscape, actively participates in the data collection process, engages in discussions about methodology, and uses the index to inform its innovation policies and strategies. India’s involvement in this process reflects its commitment to fostering innovation and economic growth. However, more pro-actions of the government , policy makers and decision implementing agencies are sine qua non for making India belong to pro-innovation nations groups such as Israel, Singapore, Japan, USA, Switzerland, Sweden, Republic of South Korea in terms of more spending on research and development and cultivation of knowledge.
(The author is a Bangalore-based Educationist and Management Scientist)
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