By Dr. Shadab Danish, Assistant Professor (Economics & Public Policy) IIM Raipur
Intellectual property rights provide jobs, innovation, safety, and access to economies of all sizes. Global Innovation Policy Centre (GIPC) developed the index of 53 countries to help businesses and policymakers measure an economy’s overall IP environment. India is ranked 40th out of 53 nations, requiring rapid engagement from the government and numerous stakeholders to improve the country’s IP environment. The historical analysis of innovation growth provides information about the nation’s technological prowess. In recent times, there has been increasing global recognition of innovative projects implemented in various countries, including India, the Philippines, Turkey, and Vietnam. The substantial capacity for innovation and notable contributions of the global south suggest encouraging prospects for economic advancement on a global scale. The nations, namely Turkey (classified as an upper-middle- income country) and the lower-middle-income economies of Vietnam, the Philippines, and India, have achieved notable positions within the top 50 of the Global Innovation Index (GII). This accomplishment can be attributed to substantial enhancements in their respective capacities for innovation. India experienced a notable improvement in its ranking, ascending from the 81st position in 2015 to the 40th position in 2022.
Green innovation story in India
The Indian manufacturing industry presents a compelling narrative of significant progress and potential, with a goal of $1 trillion in exports by 2030. Increased exports and productivity are related to the country’s improved innovation. Patenting has increased as a result of economic liberalization and TRIPS-aligned IP policy reforms. In 2021-22, 66,440 patent applications (across all technology fields) were filed, a 13.57 percent increase over the previous year. Domestic patent application filings increased to 29,508, accounting for 44.41% of total filings, up from 41.58% in 2020-21. The rise in Indian patents reflects the country’s growing commitment to innovation, which should result in improved economic and industrial performance. However, there is still a lack of clarity in the literature regarding the commitment to green technology. This article looks at India’s success in key areas of green technology and what the country needs to do to move forward.
Innovations in technology that prioritize environmental sustainability may offer potential solutions. However, the solution is not as straightforward as depending solely on temporary fixes and implementing a small number of innovative strategies. The analysis shows India’s green technology potential and innovation, particularly in wind, solar, geothermal, ocean, hydro, biomass, and waste energy. However, patenting activity has plateaued in recent years, indicating the need for a strategic approach to green technology innovation in India.
A similar pattern has been observed in almost all other sub- categories of alternative energy technology. There was a large discrepancy in the total number of patents between the IPO and the Chinese patent office. In comparison to China, where 25759 residential patents were filed during the same time period, India only filed for 836 solar energy patents between 2014 and 2023. Even though there are not as many patents or innovations in India as there are in other countries (China, South Korea, Japan, etc.), the government can use the country’s population to its benefit.
Increasing private sector investment confidence and working with industry and universities can also make big changes. Moreover, through the strategic utilization of geo-political advantages and the establishment of a vibrant and cooperative environment, India has the potential to significantly advance its green technology industry and make substantial contributions to international endeavors aimed at addressing climate change, all the while promoting economic development.
Numerous government initiatives, such as the flagship Atal Innovation Mission (AIM) program and the R&D tax credit policy, have the potential to impact India’s manufacturing industry positively, as a recent study conducted by Ivus et al. (2021) showed a positive association between the implementation of R&D tax credit policy and the level of innovation. Further, deep-tech innovation and a focus on product creation in underserved markets can turn out to be a game changer for India. According to Nasscom, the start-up ecosystem will add 250 scale- ups in tech, logistics, automotive, fintech, and health tech by 2025. However, creating a long- term business model centered on business-to-business (B2B) or enterprise-focused services is required. To achieve net zero and ensure sustainability, as suggested by the Sustainable Development Goals (SDGs), the government must implement tax incentives for green inventories, such as alternative energy production, administrative regulation and design effects, agriculture and forestry, and so on (WIPO has developed the green inventory lists). We anticipate the government will strengthen the industrial sector in the coming budget by incentivizing private innovation (especially green innovation) and creating innovation hubs in the different regions along the innovation Bank (stock of knowledge) to democratize knowledge.