Research & Development for global competitiveness

K.Vijayaraghavan.CMC.,FIMCDirector, Sathguru Management Consultants.

Visiting Faculty, Cornell University.vijay@sathguru.com

INDIAN COMPANIES GOING GLOBAL

Indian technology development mission - Historical reality

Public research – Quest for self reliance. - Military, health care, agriculture …Socialist economic policy within a democratic

political framework…..Central control.. State production – control of

private production. No focus on technology transfer.

Change of direction in 1991…

Economic growth.

14 years of successive growth phaseSuccessive upward movement in technology

applicationAccess to global technologies accelerate “in-

licensing” in several sectors.Engineering, chemicals, life science products,

mining and metals.. significant technology up gradation.

Combined efforts of public and private sector.

R&D -GLOBAL INTEGRATION

RESEARCH & TECH TRANSFER IN INDIA

EARLIERAcademic oriented - Non-interactive - internally

focussed

TODAYInteractive - market oriented - Globally

focussed

The chemistry of research and innovation.

R&D spending triggers innovation

Innovation stimulates economic growth

Pace of innovation determines rate of return

Collaborative partnerships ensure high pace of

innovation . . .

SEVERAL GLOBAL PLAYERS GAIN FROM THIS MISSION

OPEN DOOR FOR GLOBAL PLAYERS FOR RESEARCH & COMMERCIALISATION

FORD, GE, MICROSOFT, ASTRA

ZENECA, MONSANTO, GSK,

PFIZER..

PERCEPTION OF RESEARCH COLLABORATIVE OPPORTUNITY IN INDIA

Macro View- Bringing in scarce “knowledge” &“Capital” for creating wealth by adding to the GDP.

Micro View- Maximising shareholder value.

Consumer View- Bringing quality products and “new” technology

MNC View- Accessing the vast potential of Indian market & Indian talent.

INTELLECTUAL PROPERTY

Historical reverence for intellectual property - GURU-SHISHYA OBLIGATION

Transitional deviations in the past

Strong urge for global harmonization

Legal, regulatory & commercial framework - WTO – TRIPS Compliance.

Emerging trends in research models.

Indian S&T strength.Continued strong focus on research for public

good.Enabling mechanismsResearch models – cross country, cross

functional.Contract and collaborative research.

RESEARCH AND DEVELOPMENT PARTNERSHIP IN INDIA – EVOLVING MODEL

Senior-Junior Symbiotic relationships Public private partnerships

INDUSTRY MAJORS INDUSTRY JUNIORS

PUBLIC RESEARCH CENTERS

Options in research partnering, product Development & delivery

Public Public

Private Private Senior – Senior Senior - Junior

Public private

Private Public

Public - Private

Several initiatives

Indian and global public research institutions undertake successful tech. Transfer in biological, physical and material sciences to private sector.

Private - Public

Donation of technologies from private sector to public institutions for public good.

Tax incentives for such donation – abundant in the west… A model for India to explore??

logo of IMCI.jpglogo of IMCI.jpg

Private - Private

Senior – Senior partnerships – vaccine consortiums – seed sector consortiums – consortiums for embedded software.

Senior – Junior consortiums – sub-licensing options – outsourcing – contract research..

Enhanced level of risk taking in research.

Positive change to risk averse mindset.80s and 90s- demonstrate Indus entrepreneur

success in silicon valley – 6% of total value come from indus entrepreneurs. Many University spin-offs.

India joins global consortium with significant funding and long term commitment ….

(telecom, public health(AIDS), genomics, environment)..

Challenges for excellence in Public research?

Debate on where to invest public funds for research.

Challenge of sustained supply of human capital in the public system??

Addressing ownership issues for publicly funded research.

Public entrepreneurship – spin-off opportunities – venture capital avenues.

Bringing mindset changes - best practices.

The future as we perceive

India will be among the major out-licensing destinations.

Focus on cutting edge research – telecom, aerospace, information technology applications, agriculture, human health, electronics..

Global collaborative research will be the focus.Public research will complement private research with

resources and basic research capabilities.Global investment will drive research for global good

from INDIA.

What will this require?

This will require successful integration of good

science and best management practices by responsive and accountable organizations.

Role of Management ConsultantsMC plays a significant role in bringing best practices

in technology management.

Interventions relate to Research priority setting & investment analysis. Outsource – in-house decisions. Research services and Technology marketing. Seamless integration - post merger & takeover. Balancing cross country cultural, legal, regulatory and management practices. Exit or GO decisions.

Conclusion

INDIA will play a significant role in promoting ethical, responsible and value based technology management services that will drive economic growth.

Management Consultants have significant potential to drive this growth.