HOW SKILL, R&D AND IP TRIAD CAN SECURE INDIA’S INNOVATION FUTURE
Innovation is the quiet force that transforms societies. It begins as a simple idea in a curious mind, grows through experimentation and learning, and finally becomes a product, service, or process that improves lives. For a country like India, with its vast population, youthful energy, and developmental aspirations, innovation is not a luxury, it is a necessity. Strengthening India’s innovation ecosystem is therefore essential for economic growth, strategic autonomy, and inclusive development.
Over the last decade, India has made visible progress in fostering innovation. Start-ups have flourished, digital public infrastructure has expanded, and India’s global innovation rankings have steadily improved. Yet, when compared with innovation leaders such as China, Japan, and other advanced Asian economies, India’s ecosystem still faces structural gaps. Addressing these gaps requires a long-term, holistic approach that connects education, skills, research, industry, and governance.
Learning from Global Experiences
Countries that have successfully built strong innovation ecosystems share some common features. For example, China’s transformation into a global manufacturing and technology hub was driven by massive investment in research and development, close integration between universities and industry, and a strong focus on applied learning. Whereas, Japan’s innovation success rests on disciplined technical education, continuous skill upgradation, and industry-academia collaboration. Singapore has demonstrated how lifelong learning, supported by the state, can keep its workforce future-ready.
India can draw inspiration from these models while adapting them to its own social and economic realities.
Funding Mechanism: As per the latest available R&D statistics, India invested only 0.65% of the GDP in R&D, compared to China (2.43%), Brazil (1.15%), and South Korea (2.5%).
Patent Filings: India now ranks 6th globally in terms of patent applications. Meanwhile, India’s patent-to-GDP ratio, a measure of the economic impact of patent activity, grew significantly from 144 in 2013 to 381 in 2023.
I] Strengthening skill education through “Learning by Doing”
At the heart of innovation lies education, not just theoretical knowledge, but practical understanding. India’s education system has traditionally emphasized examinations and rote learning. To build an innovation-driven society, this approach must evolve.
Introducing compulsory vocational and technical exposure at school and college level can be transformative. When students learn how machines work, how products are designed, or how problems are solved in real settings, creativity naturally follows. Institutions such as Japan’s KOSEN system demonstrate how early exposure to hands-on engineering and applied science creates confident innovators.
In India, vocational education must be given equal dignity as academic education. Integrating skills training with mainstream curricula, modernising Industrial Training Institutes (ITIs), and aligning courses with emerging technologies such as artificial intelligence, electric mobility, and clean energy will help bridge the gap between education and industry needs.
Exposing young students to innovation-driven learning during early years helps them develop curiosity, experimentation and R&D mindset. Student exchanges, national and international competitions, innovation fairs should be actively promoted to encourage collaboration and creative thinking in that area. Such initiatives not only build technical and research skills but also introduce students to the importance of securing one’s innovations through IP protection, thereby linking skill development with IP awareness from a very early student life.
II] Investing More in Research and Development
A strong innovation ecosystem rests on sustained investment in research and development (R&D). While India’s R&D spending has increased over the years, however it remains modest compared to the global leaders.
Government research institutions, universities and laboratories should be encouraged to focus not only on publications but also on real-world impact. At the same time, private industry must be incentivised to invest in long-term research rather than short-term gains. Collaborative research platforms, shared laboratories, and mission-mode programmes in strategic sectors can accelerate innovation outcomes.
Tax incentives can also play a crucial role in encouraging participation of private sector in R&D. For example, policy frameworks that allows IP which are developed in-house to be capitalised as an asset, this can motivate companies to budget and spend more for research and product development. Government-led tax breaks, weighted deductions and R&D-linked incentives similar to PLI can significantly encourage innovation-led growth and align corporate strategy with national innovation goals.
a. Deepening Industry–Academia Collaboration
One of the major weaknesses in India’s innovation landscape is the limited interaction between academia and industry. Universities often work in isolation, while industries struggle to find skilled manpower and practical solutions.
This gap can be bridged through structured partnerships. Joint research projects, industry-funded doctoral programmes, faculty internships in industry, and start-up incubators within universities can create a two-way flow of knowledge. When students and researchers understand market needs, and industries access academic expertise, innovation becomes faster and more relevant. Here, the government must act as a facilitator to deepen and institutionalise industry–academia collaboration. The government can actively promote partnerships, can publish problem statements etc. Additionally, the intellectual property regime must be streamlined and expedited. While some IP incentives already exist, they should be expanded to include all the entities including unscheduled academic institutions and large enterprises so that innovation at any organization is encouraged and rewarded.
b. Empowering Start-ups and MSMEs
Start-ups and micro, small, and medium enterprises (MSMEs) are the engines of grassroots innovation. India’s start-up ecosystem has grown rapidly, supported by digital platforms, easier access to finance, and policy initiatives. However, many start-ups struggle to scale due to regulatory complexity, limited mentoring, and market access challenges.
A supportive innovation ecosystem must go beyond funding. Simplified compliance procedures, faster public procurement access, and strong incubation and acceleration support can help young enterprises grow sustainably. For MSMEs, technology adoption, digital tools, and skill upgradation are crucial to enhance productivity and competitiveness.
Even when funding is available, high interest rates makes innovation expensive and risky. There should exist a government-backed schemes which gives easier credit access at subsidised rates for R&D-intensive ventures. Affordable financing reduces the cost of experimentation and allows enterprises to focus on innovation rather than short-term financial survival.
c. Fostering International Collaboration
In an interconnected world, innovation is rarely confined within national borders. India’s partnerships with countries like Japan in areas of clean energy, advanced manufacturing, and digital technologies highlight the value of international cooperation.
Such collaborations enable knowledge sharing, access to advanced technologies, and exposure to global best practices. India should continue to strengthen research partnerships, student exchanges, and joint innovation programmes with leading innovation economies while ensuring domestic capacity building.
III] Strengthening Intellectual Property Awareness at early age
Innovation flourishes when creators feel secure about their ideas. Intellectual property (IP) systems play a critical role in protecting innovation and encouraging investment. While India has a robust legal framework for IP, awareness remains limited, especially among students, researchers, and small entrepreneurs.
Promoting IP education at universities, providing easy access to IP facilitation centres, and reducing procedural delays can make the system more user-friendly. When innovators understand how to protect and commercialise their ideas, innovation becomes economically rewarding.
Conclusion
Strengthening India’s innovation ecosystem is a journey, not a single reform. It requires patient investment, coordinated policies, and cultural change. Education must nurture curiosity, skills must meet future needs, research must connect with industry, and institutions must support risk-taking and creativity. India stands at a critical moment, wherein with its demographic advantage and growing global influence, the country has the potential to emerge as a leading innovation hub of the 21st century. By learning from global experiences while building on its own strengths, India can create an innovation ecosystem that is not only competitive but also inclusive, sustainable, and deeply rooted in the spirit of “learning by doing” while investing more in R&D and exhaustively making its citizens aware of their IP rights.