Innovation should also be reflected in policy formulation and implementation. Policies that support R&D across various sectors, provide tax incentives for startups, and encourage public-private partnerships can create a more conducive environment for innovation.

Do we need a ministry for innovation? (Credit: Pixabay)

New Delhi: The idea of establishing a Ministry of Innovation in India, despite its noble intentions, appears to have many gaps. Innovation, by its very nature, is dynamic, multifaceted, and often unpredictable. Attempting to encapsulate it within a single ministry may risk undermining the essence of what makes innovation powerful: its ability to permeate every aspect of society and economy. Instead, what India needs is a cultural shift that embeds innovation across its entire governmental and administrative ecosystem.

The urgency of innovation is critical for India as a geopolitical moat. However, can it achieved by adding another bureaucratic layer? True innovation demands substantial capital and skilled human resources to drive self-sufficiency and global competitiveness. While it is important to observe countries like China, emulating their approach is not the solution for India. Instead, India must develop its own strategy that leverages its unique strengths and fosters an ecosystem where innovation can thrive organically.

“Innovation must be woven into the very fabric of democratic existence, for it is through the relentless pursuit of new ideas and solutions that societies evolve, empower their citizens, and ensure a future of shared prosperity and resilience.”

Some global examples

Globally, we have witnessed numerous corporate success stories where innovation is not confined to a single department but is a pervasive element of the organisational culture. Take Google, for instance. The company’s innovative prowess is not just a product of its dedicated research labs but is deeply ingrained in its corporate ethos. Employees across all levels are encouraged to spend a portion of their time on creative projects outside their immediate job scope. This culture of widespread innovation has led to breakthroughs.

Similarly, 3M is renowned for its commitment to fostering innovation at every level. The company’s “15% rule,” which allows employees to dedicate a portion of their work time to pursue new ideas, has led to the development of iconic products like Post-it Notes. This approach demonstrates that when innovation is democratised, rather than centralised, it leads to more organic and diverse breakthroughs.

While a Ministry of Innovation could potentially spearhead certain initiatives, the real catalyst for transformative change in India lies in fostering a robust private sector commitment to research and development (R&D). Historical data underscores the pivotal role of the private sector in driving technological advancement. For instance, China’s dramatic surge in global patent filings—from less than half of the US total in 2015 to surpassing it by 2022—was not solely the result of government directives but a concerted effort involving substantial private sector investment and involvement.

China’s strategic emphasis on technology and innovation as national priorities has been underpinned by a collaborative effort between the government and the private sector. The Chinese government’s allocation of $51 billion to science and technology this year exemplifies this commitment. However, it is the combined annual R&D expenditure of $456 billion, with significant contributions from private enterprises, that truly propels China’s innovation landscape. This contrasts starkly with India’s scenario, where the private sector’s R&D investment lags significantly behind, contributing a meager portion to the country’s overall $15 billion R&D spend in 2020-21.

Why innovation-driven economy is way forward

To bridge this gap, India’s private sector must take a proactive role in fostering an innovation-driven economy. This requires a paradigm shift in how Indian industries perceive and invest in R&D. Merely relying on government initiatives will not suffice; the private sector needs to elevate its participation and investment in cutting-edge research, which will drive technological advancements and global competitiveness. This includes fostering collaborations with academic institutions, investing in startup ecosystems, and enhancing corporate R&D infrastructure.

Furthermore, the National Education Policy (NEP) is a promising initiative, but its impact will materialise over the next decade. There is an urgent need for a synergistic approach that aligns the evolving education system with the industrial demands for innovation. Currently, India grapples with a weak STEM ecosystem and an education system that is gradually adapting to contemporary needs. Simultaneously, the country’s manufacturing sector, despite its strengths in parts, is yet to reach its potential and to prove its prowess to be globally significant.

For an innovation economy, Industries across education, research, and corporate sectors must lead by example, initiating their own transformative changes. This includes enhancing STEM education quality, fostering a culture of innovation within organisations, and investing in advanced manufacturing technologies. By doing so, the private sector can catalyse a broader ecosystem of innovation, driving India toward a future where it is not merely catching up with global standards but setting them.

India already has a plethora of institutional frameworks designed to foster innovation, either wholly or in parts, such as the Quality Council of India, the National Skill Development Corporation, and NITI Aayog. However, these institutions have not individually driven significant progress. Instead, it is the individual entities with strong techno-commercial skills, like ISRO, which has revolutionised space technology, and NPCI, which pioneered the UPI evolution, that have made notable impacts. Of course there are many other public and private entities as pioneering examples. This demonstrates that innovation thrives on technical expertise and commercial acumen, which cannot be effectively cultivated through a purely bureaucratic or political approach within a ministry.

India’s governmental structure should take cues from these corporate models. Instead of creating a siloed Ministry of Innovation, the government should focus on cultivating an innovative mindset across all levels of its administration. This would involve comprehensive administrative reforms aimed at making the bureaucracy more agile, accountable, and attuned to contemporary needs.

India’s role in cutting-edge innovation

Contrary to the assertion that governments and their bureaucrats are incapable of driving bleeding-edge innovation, the Indian government has been a pivotal force in establishing India as the digital public infrastructure capital of the world. Through initiatives such as Aadhaar, the world’s largest biometric identification system, and the Unified Payments Interface (UPI), which revolutionised digital transactions, the government has demonstrated unparalleled agility and foresight. These initiatives have laid the groundwork for a robust digital ecosystem, fostering financial inclusion, enhancing service delivery, and catalysing further innovation across various sectors.

A robust approach to innovation and development in India necessitates strong coordination between the central and state governments. This collaboration is essential not only for attracting global investments but also for enhancing the education-industry nexus. Centralised efforts alone, such as a Ministry of Innovation, cannot address the diverse needs and challenges across India’s vast and varied states. Effective centre-state coordination can harmonise policies, streamline regulatory frameworks, and create an enabling environment that encourages investment in R&D at both national and regional levels. This synergy can also ensure that educational reforms and industry requirements are aligned, fostering a skilled workforce that meets the evolving demands of the global market. By working together, the central and state governments can leverage their unique strengths and resources to drive comprehensive and inclusive growth, propelling India towards a future of sustained innovation and economic prowess.

One of the critical issues plaguing India’s bureaucracy is its entrenched red tape and lack of accountability. Administrative law reform is essential to dismantle these barriers and to create an environment where innovation can thrive. Streamlining procedures, reducing bureaucratic bottlenecks, and introducing performance-based incentives are crucial steps towards this goal. By holding bureaucrats accountable for their performance and encouraging a results-oriented mindset, the government can foster a culture where innovation is not just encouraged but expected.

Innovation should also be reflected in policy formulation and implementation. Policies that support R&D across various sectors, provide tax incentives for startups, and encourage public-private partnerships can create a more conducive environment for innovation. The government should act as an enabler, removing obstacles and providing the necessary support for innovative ideas to flourish across all sectors.

“In a democracy, innovation is not just a catalyst for progress but a testament to our collective creativity and adaptability, ensuring that every voice contributes to the ongoing narrative of advancement and empowerment.”

The pursuit of innovation should not be the mandate of a solitary ministry but rather a fundamental aspect of the entire governmental and administrative framework. Only by embedding an innovative culture throughout the government, India can better harness its potential.

(The author is a Policy Researcher & Corporate Advisor. He tweets @ssmumbai) 

(Disclaimer: The views expressed in this article are those of the author’s alone. The opinions and facts in this article do not represent the stand of News9)