Trends in Industrial R&D in India from 1996-2011: An Analysis

Indian industry has traditionally been a low spender on R&D, but some industries are showing promise of higher investments in R&D. The three key industries show a trend of higher investment in R&D. This paper analyzed the number of films conducting R&D, their expenditures on R&D, sales, and technical fees, and presented the analysis of the companies in foreign private sector, Indian private sector, central government, state government, and top 50 business houses in addition to the overall aggregate analysis. Furthermore, the paper identified industries/industry groups with high average research and development intensity over the 16 years. The results showed that the government definitely plays a role to increase the number of companies investing in R&D, either through incentives or advocacy. The models developed to find the relationship between sales and R&D investment are baseline models and need greater refinement.