Government today strongly pitched for increased private sector investment in research and devlopment efforts in the country and creating a "correct" ecosystem that promotes innovation.
Science and Technology Minister S Jaipal Reddy said while investment of private sector in R&D in developed countries is 60-80 per cent, it is only about 30 per cent in India.
"Government leads the expenditure in research innovation in the country. We need the private sector to take the lead in innovation enterprise. One expects the private sector to play a bigger role in the years to come," he said.
The Minister was speaking at the Assocham's second national innovation summit and award function here.
According to a report released on the occasion, 75-80 per cent of the R&D spending in India is funded by the government entities and academia in India. This is in contrast to USA where 60 per cent of the spending is funded by the private sector.
It stated that "Indian companies R&D expenditure remained lower than international standards". These companies together spent a total of USD 1.8 billion on R&D last year which is only 0.5 per cent of the revenue earned in the same period.
Reddy also sought "to correct the Indian innovation ecosystem and bridge the gaps with critical inputs like policy environment, creative people, institutional strength, investment climate, strong entrepreneurship and enabling ecosystem to create wealth.
Further, he emphasised on developing an education system where focus is laid on application that promotes innovation.
"Eduction is not focussed on applications. It relies heavily on understanding and imparting knowledge rather than skills to apply," he said.
He especially regretted the standards of the engineering colleges and other educational institution with respect to innovations.
"We need a strong innovation movement in the entire chain of knowledge network," he said adding the government would soon be releasing a white prepared by a committee comprising experts from industry and government.
