How India’s R&D ecosystem shapes its goal of becoming a knowledge-driven economy

India's research and development (R&D) ecosystem faces substantial challenges as it strives to become a knowledge-driven economy, according to a recent report by NITI Aayog titled "Ease of Doing R&D in India." The report highlights heavy dependence on public funding, a significant concentration of grants in the prestigious Indian Institutes of Technology (IITs), and a critical gap between knowledge creation and its translation into market-ready products.

India's R&D funding primarily comes from the central and state governments, accounting for nearly 60% of the total Gross Expenditure on Research and Development (GERD). Public sector institutions like the Indian Space Research Organisation, Defence Research and Development Organisation, Council of Scientific and Industrial Research, and Department of Atomic Energy receive a substantial share of these funds.

In contrast, private sector contribution to GERD ranges between 36% and 70%, considerably lower than in developed economies such as the US, South Korea, and Japan.

One of the key challenges in bridging the gap between academia and industry lies in the funding allocated to research. While public funding and academic grants predominantly support proof-of-concept work at early Technology Readiness Levels (TRL 1-3), moving to more advanced TRLs (4-7) - involving prototyping, pilot testing, and real-world validation - requires significantly more capital and industry participation. This transition presents a significant hurdle, often referred to as the "valley of death."

To address this issue, the Indian government has implemented several initiatives to foster collaboration between academia and industry. The Biotechnology Industry Research Assistance Council (BIRAC), launched in 2012 under the Department of Biotechnology, provides bio-incubators, seed funding, and de-risking grants to facilitate biotech commercialization.

The Integrated Manufacturing Program and Research Translational (IMPRINT) program, launched jointly by the Ministry of Education and Ministry of Science and Technology in 2015, directs academic research at IITs and the Indian Institute of Science (IISC) toward addressing engineering and technology challenges in collaboration with industry.

More recently, the Anusandhan National Research Foundation (ANRF), established in 2023 through an Act of Parliament, aims to seed, grow, and facilitate research across academic and research institutions nationwide.