India R&D Centers Key Research Focus- National Knowledge Commission Report

India R&D Centers Key Research Focus
Innovation Report from National Knowledge Commission of India

ASSIGNMENT 5:
Research Methodology
Dr. Sridhar

TITLE: A Study on Pragmatic Approaches and
Quality Initiatives for Enhancing Teachers’ Caliber
in
Post Graduate Institutes offering MBA Programme
under Bangalore University
Under the Guidance of
Dr. T.V. Raju
Director, RV Institute of Management, Bangalore

CANARA BANK SCHOOL OF MANAGEMENT STUDIES
BANGALORE UNIVERSITY

SUBMITTED BY

Shivananda R Koteshwar
PhD Research Scholar, 2013, REG# 350051

Shivananda
R
Koteshwar,
PhD
Research
Scholar,
Bangalore
University


India
R&D
Centers
Key
Research
Focus

Source:
National
Knowledge
Commission
2007
Report

National
Knowledge
Commission
(NKC)
report
is
a
detailed
and
in-‐depth

quantitative
and
qualitative
survey
on
innovation
in
India
(As
defined
more

broadly
than
R&D)
using
firm
level
aggregate
statistical
data
on
a
nationwide

scale,
with
a
sample
that
includes
the
top
industry
leaders
as
well
as
a
large

number
of
small
and
medium
enterprises
(SMEs),
and
across
varied
industrial

profiles,
ranging
from
manufacturing
and
services
to
diversified
businesses.

Highlights
of
this
study
are:

• 137
firms
were
interviewed,
out
of
which
58
are
large
firms
and
79
are

SMEs

• Firms
represent
a
wide
range
of
sectors
from
manufacturing
and
services

–
including
mining,
automotives,
home
appliances,
paper,
steel,
energy,

pharmaceuticals,
textiles,
IT/ITeS,
banking
and
financial,
healthcare,

aviation,
retail,
shipping,
biotechnology,
media,
diversified
etc.
See

• Methodology:
Separate
questionnaires
on
Innovation
for
large
firms
and

SMEs.

• Reports
to
Prime
Minister
on
the
topic
and
seeks
to
generate
and
facilitate

policies
that
would
accelerate
Innovation
led
economic
growth
in
India

• Provides
feedback
to
firms
so
that
they
can
use
this
information
to

improve
processes.

• Expected
outcome:
Add
to
Innovation
literature
and
generate
catalytic

impact
on
a
large
scale
to
embed
the
spirit
of
Innovation.

NKC
defines
Innovation
in
the
following
manner
for
the
purposes
of
this
survey:

‘Innovation
is
defined
as
a
process
by
which
varying
degrees
of
measurable
value

enhancement
is
planned
and
achieved,
in
any
commercial
activity.
This
process

may
be
breakthrough
or
incremental,
and
it
may
occur
systematically
in
a

company
or
sporadically;
it
may
be
achieved
by:

• Introducing
new
or
improved
goods
or
services
and/or

• Implementing
new
or
improved
operational
processes
and/or

• Implementing
new
or
improved
organizational/
managerial
processes

in
order
to
improve
market
share,
competitiveness
and
quality,
while
reducing

costs.’

Several
government
programs
have
been
established
with
the
explicit
purpose
of

driving
Innovation
in
the
Indian
economy
–
notable
amongst
these
are
the

NMITLI
(New
Millennium
India
Technology
Leadership
Initiative),
TePP

(Techno-‐Entrepreneurs
Promotion
Program),
the
National
Innovation

Foundation,
TDB
(Technology
Development
Board),
HGT
(Home
Grown

Technology
Program),
etc.

Need
for
Systemic
Reforms

Innovation
is
an
effort
that
requires
the
synergistic
use
of
cumulative
energies
of

the
industry,
the
government,
the
educational
system,
the
R&D
environment
and

Shivananda
R
Koteshwar,
PhD
Research
Scholar,
Bangalore
University

the
consumer.
The
Innovation
Ecosystem,
as
seen
from
Figure
17
below,
is
a

complex
environment
that
requires
the
coordinated
functioning
of
a
number
of

diverse
factors
in
order
to
function
effectively.
Innovation
also
needs
to
become

as
wide
spread
as
possible,
spreading
across
the
entire
economy,
from
the

grassroots
to
the
large
firm
level.
As
already
noted
above,
crucial
to
the
goal
of

increasing
Innovation
led
growth
is
the
need
to
bring
about
reforms
in
the

education
system,
especially
in
respect
of
higher
education
and
skill
based

marketable
vocational
education.
Therefore,
the
mandate
of
the
NKC,
which
is
to

guide
policy
and
direct
reforms
to
allow
India
to
effectively
use
and
create

knowledge
capital,
is
critical
and
extremely
relevant
to
furthering
the
cause
of

Innovation
and
entrepreneurship
in
the
Indian
economy.
It
is
felt
that
a

comprehensive
effort
to
address
these
issues
would
act
as
a
critical
enabling

factor
for
India
to
be
amongst
the
global
leaders
in
Innovation.

Key
Results:

• ‘Innovation
Intensity’
(i.e.
the
percentage
of
revenue
derived
from

products/
services
which
are
less
than
3
years
old)
has
increased
for

large
firms
and
SMEs,
with
SMEs
registering
a
greater
increase
in

Innovation
Intensity
than
large
firms.
Innovation
Intensity
has
an
inverse

relationship
with
the
size
of
the
firm
–
as
measured
both
by
the
number
of

employees
and
the
annual
revenue.

• Internal
processes
for
Innovation
such
as
maintaining
a
specific

Innovation
department,
allocating
funds,
rewarding
innovative

employees,
forecasting
probabilities
of
success,
formalizing
processes
and

systematic
attempts,
maintaining
physical
locations
for
Innovation
and

constituting
cross
functional
teams
all
lead
to
firms
being
more

innovative

Shivananda
R
Koteshwar,
PhD
Research
Scholar,
Bangalore
University

•

Innovation
is
most
highly
concentrated
in
operations,
with
sales
and

marketing
being
the
next
most
important.
This
emphasis
on
process
is
a

departure
from
traditional
R&D
and
manufacture
centric
notions
of

Innovation

Which
firms
are
innovative?

• SMEs
have
greater
Innovation
Intensity
than
large
firms.

• Innovation
Intensity
for
privately
and
publicly
owned
firms
is

significantly
higher
than
that
of
government
owned
firms.

• Firms
with
majority
foreign
ownership
have
greater
Innovation
Intensity

than
those
with
majority
Indian
ownership.

• Innovation
Intensity
for
MNCs
is
significantly
higher
than
for
non-‐MNCs

while
there
is
little
difference
in
the
percentage
of
‘Highly
Innovative’

firms
among
MNCs
and
non-‐MNCs.

• Internal
processes
for
Innovation
such
as
maintaining
a
specific

Innovation
department,
allocating
funds,
rewarding
innovative

employees,
forecasting
probabilities
of
success,
formalizing
processes
and

systematic
attempts,
maintaining
physical
locations
for
Innovation
and

constituting
cross
functional
teams
all
lead
to
firms
being
more

innovative.
Further,
firms
with
greater
R&D
spending,
Innovation

spending
and
strategic
prioritization
for
Innovation
are
also
more
likely

to
be
more
innovative.

• Firms
with
their
primary
market
in
India
have
higher
Innovation

Intensity
than
those
with
primary
markets
abroad.
On
the
other
hand,
a

greater
proportion
of
firms
with
their
primary
market
abroad
are
Highly

Innovative
(i.e.
have
introduced
more
‘new
to
world’
Innovations)
as

compared
with
firms
with
their
primary
market
in
India.

• Firms
in
industries
where
Innovations
are
patented,
with
more
patent

filings
and
use
of
IPR
consultants
are
more
innovative.

• Firms
partnering
with
government
agencies,
collaborating
with

universities
and
R&D
labs
also
tend
to
be
more
innovative

Barriers
to
innovation

External:

• Skill
shortage
due
to
the
lack
of
emphasis
on
industrial
Innovation,

problem-‐solving,
design,
experimentation,
etc.
in
the
education
curricula

• Lack
of
effective
collaboration
with
research
in
universities
and
R&D

institutions,
excessive
government
regulation
as
well
as
insufficient

pricing
power
to
derive
value
from
Innovations

Internal

•
Lack
of
organizational
focus
on
Innovation
as
a
strategy
for
growth
and

competitiveness;

• Inefficient
knowledge
management
systems
within
the
company;
and

poor
understanding
of
customer
needs
and
market
dynamics.

• For
SMEs,
prominent
internal
barriers
are
skill
shortages
due
to
lack
of

effective
in-‐house
training
programmes;
inability
to
move
beyond
the
first

successful

Steps
to
be
taken
to
realize
India’s
Innovation
potential

Shivananda
R
Koteshwar,
PhD
Research
Scholar,
Bangalore
University

1. Systematic
reform
of
the
higher
education
system
(including
skill
based

marketable
vocational
education)
in
India,
which
would
act
as
an
enabler

for
developing
the
required
intellectual
capital
as
well
as
lay
the

foundation
for
effective
collaboration
between
industry,
educational

institutions
and
the
government.
Therefore,
the
mandate
of
the
NKC,

which
is
to
guide
policy
and
direct
reforms
to
allow
India
to
effectively

use
and
create
knowledge
capital,
is
critical
and
extremely
relevant
in

furthering
the
cause
of
Innovation
and
entrepreneurship
in
the
Indian

economy.

2. The
synergistic
use
of
cumulative
energies
of
the
industry,
the

government,
the
educational
system,
the
R&D
environment
and
the

consumer.
The
Innovation
ecosystem
is
a
complex
environment
that

requires
the
coordinated
functioning
of
a
number
of
diverse
factors
in

order
to
function
effectively.

3. Innovation
also
needs
to
become
as
wide
spread
as
possible,
spreading

across
the
entire
economy,
from
the
grassroots
to
the
large
firm
level.
It
is

felt
that
a
comprehensive
effort
to
address
these
issues
would
act
as
a

critical
enabling
factor
for
India
to
be
amongst
the
global
leaders
in

Innovation.

CAPTURING
SURVEY
RESULTS
IN
GRAPHS:

More
than
60%
of
the
SMEs
in
our
sample
have
Innovation
Intensity
greater
than

20%,
as
compared
to
less
than
25%
of
the
large
firms
in
our
sample.

Shivananda
R
Koteshwar,
PhD
Research
Scholar,
Bangalore
University


Shivananda
R
Koteshwar,
PhD
Research
Scholar,
Bangalore
University


Figure
8
above
shows
that
all
the
four
conceptual
types
of
Innovation
–

systematic,
sporadic,
breakthrough
and
incremental
–
are
occurring

simultaneously
at
varying
degrees
in
India’s
economy
today.
The
largest

proportion
(more
than
half
)
of
large
firms
lies
in
the
systematic
incremental

quadrant,
as
can
be
seen
from
Figure
8,
which
may
be
an
indication
that
large

firms
in
India
are
still
in
the
mindset
of
incremental
Innovation
as
compared

with
breakthrough
Innovation

Shivananda
R
Koteshwar,
PhD
Research
Scholar,
Bangalore
University

India R&D Centers Key Research Focus- National Knowledge Commission Report

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