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R&D
Globalization The phenomena globalization of various economic
activities has its impact on R&D scenario as well. The traditional
position on various R&D parameters were well marked by the US on the top
followed by Japan and European countries. Major changes in the government
attitudes and approaches in these countries have sparked an escalation of
R&D activities. Regulations relating to economic development and foreign
investment and ownership have been modified in several technologically
developing countries to the point where foreign industry has begun to take
advantage interaction has grown from ‘testing-the-waters’ approach with
preliminary contract research arrangements to what have now become major
investments in institution building and creation of new subsidiary operations
and establishment of joint ventures. A recent survey by R&D Magazine on Trends in Global
R&D addresses some of these aspects. The US retain the pride of place in
R&D with USD 328.90 billion in PPP terms, is more than twice its nearest
competitor, The Peoples Republic of China the investment for which stood at
USD 136.30 billion in 2006. Japan
is in the 3rd position with USD 127.84 billion; Germany [USD 60.21
billion] and France [USD 42.10 billion] finish fourth and fifth. India with
USD 38.85 billion is now ahead of the U.K., Russia, South Korea [Table 1] Survey reveals that global industrial R&D
distribution is skewed towards computing & electronics [25 %] Health [21%]
and automotive [18%] [Table 2]. It is precisely in these sectors that global
outsourcing happens. Perceived technology capability as seen by the survey
report ranks India as second only to Japan in telecom. Also, India is ahead of
China in six of the 12 fields such as: Pharmaceuticals discovery; biotech,
nano-technology, Information technology, academic basic research, energy
research. Her comes a fresh reinforcement of our capabilities from
the world level observers in the field. However, the catch seems to be in the
proportion of R&D investment from the industry. Indian industrial sector
invests 23.0% of the total, and 74.1% comes from the Government sources. In
fact, India stands first on the criteria of Government support to R&D.
This trend is contrary to that of China, where the industrial contribution to
R&D is 57.6$ and government’s 33.4% There cannot be a more forceful argument than this in
establishing the need for more active R&D activities by our industrial
establishments cutting across specific sectors. Table 1 R&D Expenditure in Select Countries
Source: Global R&D Report - 2007. http://www.rdmag.com/pdf/RD_GR2006.pdf Table 2
Source: Global R&D Report - 2007. http://www.rdmag.com/pdf/RD_GR2006.pdf |
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Global Innovation Index is a new model put forward
to measure that examines the
degree to which individual nations and regions are currently responding to
the challenge of innovation. As per the new measure innovation is
directly linked to a country's ability to adopt and benefit from leading
technologies, increased human capacities, organizational and operational
developments, and enhanced institutional performance. The GII aspires to
bring together a number of complementary concepts aimed at providing a
holistic framework for measuring innovation. The GII is intended to serve not only as a means for
determining a particular country's relative response capacity, but also
gives a clearer picture of a country's strengths and deficiencies with
respect to innovation-related policies and practices. The framework upon which the GII model rests relies
upon eight pillars made up of five inputs and three outputs that underpin
the factors that enhance innovative capacity and demonstrate results from
successful innovation. The framework groups the eight pillars of innovation
into two categories: Inputs and Outputs. The
five Input pillars: These represent aspects which enhance the capacity
of a nation to generate ideas and leverage them for innovative products and
services. The
three Output pillars: These factors are argued to represent the ultimate
benefits of innovation for a nation - more knowledge creation, increased
competitiveness and greater wealth generation. Each pillar of the GII model is measured by a number
of quantitative and qualitative variables. The averaged scores for the Input
and Output pillars together give an overall score - the Global Innovation
Index. The components of five inputs and three outputs, by which countries' innovative capacity was measured, are listed in detail below. INPUTS
Based on a 7 point scoring mechanism on various components and also normalized on a seven point scale to the country, the followiing are the top 25 countries with innovation potential.
A cursory look at the components of GII shows that there is an over emphasis on ICT in the measure. And also factors seem to be skewed taking the U.S. as the benchmark and it is obvious the U.S. tops the world as most innovative country. Perhaps it is true as well. But there are a few upsets down below in the scale. UAE is more innovative than Israel and also India. Are we examining one too many grains to know whether the rice has cooked? |
China R&D
Accelerating
The Chinese
Academy of Sciences (CAS) recently announced dramatic successes in 2006 at
increasing its S&T programs. By
seizing the opportunity of the start of China’s 11th Five Year
Plan (2006-2010) and the National Plan for Medium and Long-Term S&T
Development (2006-2020), the CAS undertook active efforts to implement its own
development plan and promote its S&T innovations. Both the quantity and quality of R&D output grew in 2006, according to CAS. CAS scientists filed for more than 4,000 patents in 2006, 86% of which were for inventions. The scientists were granted more than 2,000 of those patents. The number of research papers by CAS scientists in journals whose impact factor ranked in the first 15% in the international community increased by nearly 25% over the same figure in 2005. CAS scientists also won 30 China-sponsored S&T prizes, including 12 prizes from the National Awards for Natural Sciences, five prizes from the National Awards for Technical Inventions, and 13 prizes form the National Awards for S&T Progress. Source R&D Magazine, April 2007 |
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U.S
Multinational R&D investments in Asia
While U.S.
multinational companies invested two-thirds of their total offshore R&D
investments, - more than $18 billion - in Europe, these same organizations
continue to increase their R&D investments in Asia. According to a U.S.
Department of Commerce report, U.S. multinational companies invested 18% of
their total $27.5 billion in offshore R&D, or $4.9 billion, in Asia in
2004. This amounted to 15% of the
total R&D investments made by the U.S. multinationals, up from 13% in
1999.
The largest
recipient of Asian R&D investments was Japan, with $1.74 billion, up form
$1.52 billion in 1999. The second
largest country receiving U.S. R&D funds was Singapore with $711 million
in 2004, up form $426 million in 1999. China was the third largest recipient
with $622 million in R&D funds, up from $319 million in 1999.
The U.S.
multinationals spend their offshore R&D monies mainly on manufacturing,
professional, scientific, and technical services.
The Business Times, www.businesstimes.com.sg
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.U.S R&D Investment 2004 |
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$ million |
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Japan |
1,740 | |
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Singapore |
711 |
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China |
622 |
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Australia |
471 |
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Taiwan |
363 |
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Malaysia |
301 |
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South Korea |
246 |
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Hong Kong |
220 |
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India |
163 |
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Philippines |
44 |
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New Zealand |
25 |
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Thailand |
23 |
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Indonesia |
4 |
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IBM PICKS BANGALORE FOR SIXTH GLOBAL SEMICONDUCTOR UNIT
IBM is setting up a research and development (R&D) centre in
Bangalore,
which is related to semiconductor research and will undertake very complex work.
This is the sixth centre of the company globally and the first outside the US
and Europe. It will be called Semiconductor Research and Development Enablement
Centre and is part of the systems and technology group of IBM, which develops
and manufactures advanced semiconductor and interconnect technologies. The
company has already begun recruitment for the Centre by tapping leading
universities for people who are highly qualified. The Centre will focus on
interconnect technologies that link the chip and circuit design. It will
initially work on compact modelling and then expand to other areas.
Economic Times. Jan 10, 2007
An expert committee, headed by R.A.Mashelkar, former head of the Council of
Scientific and Industrial Research (CSIR), has recommended to the Government of
India not to limit the grant of patents to new pharmaceutical substances to new
chemical entities and new medical entities involving one or more inventive
steps. It has also sought encouragement for incremental development of products
by Indian patent regime. The committee also drew reference to the compliance of
intellectual property rights agreement of the World Trade Organisation (WTO) and
national perspectives.
The Hindu. Jan 13, 2007
CISCO TO INVEST $1.1 BILLION IN INDIA
Cisco Systems intends to invest $1.1 billion in India. It has allocated $50 million for a new research and development (R&D) campus in Bangalore.
This R&D facility will be operational by Jun 2007. Cisco will spend $750
million more on R&D activities, training and development in India in the
next 3 years. Cisco also intends to set up a manufacturing base in India to
manufacture Internet protocol (IP) phones, both for the domestic and overseas
markets. For this, Cisco has tied up with Foxconn to work on the facility.
Voice & Data. Jan 31, 2007; pg 101
ATL PLANS R&D FACILITY IN GERMANY
Apollo Tyres intends to set up a research and development (R&D) facility
in Germany in a bid to strengthen its existing alliance with Leipzig Institute
of Polymer Science, whose experts are helping Apollo on the development of novel
technology for tyres. Apollo is also working with the National Institute of
Design, Ahmedabad and Indian Institute of Technology (IIT) Kharagpur for design
and development of rubber technology.
Rubber India. Jan 31, 2007; pg 73
DUPONT'S FIRST R&D CENTRE IN INDIA
DuPont India has decided to set up its first research and development
(R&D) centre in India, The DuPont Knowledge Center, at Hyderabad in Andhra
Pradesh. The company has acquired 15 acres of land on long-term lease from ICICI
Knowledge Park to set up the Centre with an investment of $22.5 million. The
centre will accommodate over 300 scientists. Initially the centre will focus on
molecular biology, bio-informatics and polymer synthesis. The centre will later
focus on R&D across the company's business growth platforms and application
pipeline. The company aims to leverage Indian science and engineering talent for
the benefit of DuPont customers and shareholders through this knowledge centre.
Source: EFYTIMES. Feb 02, 2007.
80 PLUS CORUS PATENTS FOR TATA STEEL LIKELY
Tata Steel is expected to receive over 80 patents filed by the Corus Group
with the United States Patent and Trademark Office (USPTO). The company is in
the process of completing the formalities of acquiring the Corus Group for $12.1
billion. Tata Steel will also get over 950 researchers of Corus in Britain and
the Netherlands. The Tata Group has nine patents assigned by the USPTO.
Source: Business Line. Feb 04, 2007.
Reliance Life Sciences has received 36 patents from applications filed for
200 rights. Of the accepted patents, six are design patents, seven product
patents and 23 process patents. The patents have been filed in 16 countries
including India and the US.
Source: Business Standard. Feb 07, 2007.
DURABLES COMPANIES HIKE R&D EXPENDITURE
Durables companies in India are increasing their expenditure on research and
development (R&D) to get concession on taxes and to invest in the World Cup
2007 cricket tournament. LG Electronics India, which is hiking its R&D
expenditure by 30 percent, is now developing Cricket Special Series of colour
televisions (CTVs) in the 29-inch category. Samsung India is developing India
Only models such as sound-oriented CTVs and imaging solutions for thin client
monitors and network displays hotel TV and next generation MP3 players and TVs.
Videocon Industries intends to increase its R&D expenditure by 20 percent,
while Mirc Electronics Ltd is hiking it by 25 to 30 percent.
Source: Financial Express. Feb 16, 2007.
BIO-TECH CROPS: GOVT R&D CENTRES TO TAKE ON PRIVATE PLAYERS
A transgenic variety of Narma cotton containing the boll worm killer,
Bt-gene, is awaiting clearance from the Genetic Engineering Approval Committee (GEAC)
of the Ministry of Environment, Government of India, for commercial cultivation.
Bt- Narma, which has in-built resistance against the boll worm pest, has been
developed by the Indian Agricultural Research Institute (IARI) in collaboration
with the Agriculture University, Dharwad, and the Central Cotton Research
Institute, Nagpur. The new crop variety will end the monopoly of private
companies over genetically modified seeds. The new crop variety will also help
reduce production costs for farmers, as they will not be required to buy fresh
seeds every year. Other crops where insect- protecting genes have been
incorporated include brinjal, cabbage, cauliflower and rice.
Source: Business Standard. Feb 24, 2007
SERIOUS BUDGET JUMP FOR SCIENCE
The Government of India has proposed an increase of Rs1,134.7 crore in the
budgetary allocation for science and technology. About Rs200 crore will be
allocated for modernisation of mapping organisations.The funds for the Ministry
of Earth Sciences has been proposed to be increased by Rs297.05 crore from
Rs589.95 crore in 2006-2007. The National Mission for Nano-Science and
Nanotechnology has received a budgetary allocation of Rs150 crore. The
allocation for drug and pharmaceutical research as been increased to Rs118 crore
from Rs60 crore in 2006-2007.
Source: Business Standard. Mar 01, 2007
INDIA RATED HIGH IN IP PROTECTION
a study conducted by Ernst and Young and Indian Semiconductor Association
(E&Y-ISA) on the competitiveness of the semiconductor industry in various
countries across the world has ranked India higher than China and the Czech
Republic in IP protection. The study has, however, ranked India behind the US,
the UK, Canada and Taiwan in IP protection. The study has found that, with the
exception of the Czech Republic, India has the least number of US patent
applications of 2,145 and the least number of patent grants at 621, during
2001-2005. This, according to the E&Y-ISA study, is because design companies
in India, being captive arms of MNCs and third party service providers, handle
only portions of products rather than the entire IP or product development. The
study has suggested that the Government of India, academia and the semiconductor
industry form a partnership to promote and fund research, IP creation and
patenting.
Source: Business Line. Mar 05, 2007
DUPONT OPENS HYDERABAD R&D CENTRE
DuPont of the US offers science products and services has proposed to invest
Rs100 crore to set up a research and development centre in Hyderabad. It is the
first centre of the company to be located outside the US. The DuPont Knowledge
Centre is aimed at developing high- yielding hybrid seeds that will help farmers
to improve crop productivity and profitability. The centre, which is due for
completion in the first quarter of 2008, is expected to accommodate 300
scientists.
Source: Financial Express. Mar 15, 2007
MAHINDRA FLAGS OFF BIO-DIESEL SUV AND TRACTOR
Mahindra & Mahindra (M&M) has launched the bio-diesel Scorpio and
Bolero DI vehicles. This version of the Scorpio, which is provided with the
indigenously developed CRDe technology, is the first 100-percent bio-diesel
vehicle in Asia in its class. The company also unveiled a 5- percent bio-diesel
tractor, another first in India. M&M had collaborated with the Indian
Institute of Technology, Kanpur, the research and development (R&D) centre
of the Indian Oil Corporation in Faridabad and Lubrizol for its bio-diesel
programmes.
Source: AUTO INDIA. Mar 31, 2007
The Indian Space Research Organisation (ISRO) will step up outsourcing to the
private sector in satellite and rocket building areas. ISRO expects the role of
private sector in Indian space programmes to grow, as it will concentrate on the
core areas of research and development. At present 60 percent of the rocket area
work and 30 percent of the satellite area work is done by the 500 small, medium
and large scale industries associated with Department of Space, Government of
India.
Source: Financial Express. Mar 31, 2007
Manipal Health System has opened a dedicated stem cell research centre at its
hospital in Bangalore. Manipal Health System has integrated all the research on
stem cells under one department, with the objective of greater application for
treatment of major disabilities and diseases. The focus will be on developing
stem cell-based therapeutics using adult stem cells.
Source: Economic Times. Apr 05, 2007
Tata Motors Ltd is likely to name its Rs1-lakh car as Jeh, in honour of
J.R.D. Tata. The company expects to roll out the car from its plant at Singur in West
Bengal in 2008. The car will have a 630cc, two-cylinder engine. Tata Motors is
planning to launch a pick-up van, Sprint, in Apr 2007. The company is likely to
manufacture the car in Thailand and Argentina in 2008.
Source: Business Line. Apr 05, 2007
BHEL CORPORATE R&D PLANS Rs1,000 CR SPEND
The research and development (R&D) unit of Bharat Heavy Electricals Ltd
(BHEL)
proposes to invest Rs1,000 crore by 2012 to ramp up its activities. This move is
aimed at enabling the company to achieve its target of $10 billion turnover and
a capacity of 15,000 megawatts by 2012. Besides enhancing work on engineering
technologies, the company also intends to focus on projects such as
nanotechnology for composite materials. BHEL has increased its expenditure on
research and development (R&D) from Rs152 crore in 2005-2006 to Rs238 crore
in 2006-2007. The company has entered into technology collaboration with Siemens
and Alstom for turbines and boilers for 500 megawatt power plants.
Source: Financial Express. Apr 11, 2007
BHEL R&D SPEND TO TOUCH Rs1,000 CRORE IN 2011-12
Bharat Heavy Electricals Ltd BHEL - Corporate R&D,
Hyderabad, plans to
increase its annual R&D expenditure to Rs1,000 crore by 2011-2012 from the
present Rs238 crore. The R&D division plans to invest in the indigenous
development of various components for super critical thermal power plants and
other advanced technology turbines and new generation power equipment. The
company's turnover of in-house products increased by 88 percent to Rs2,510 crore
in 2006-2007 Rs1,152 crore in 2005-2006.
Source: Business Standard. Apr 12, 2007
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1.5 billion dolalrs is the damages Microsoft was ordered to pay Alcatel-Lucent in a patent dispute over the MP3 format