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Thursday, February 06, 2020

FDI in R&D in India-Reji K. Joseph, Biswajit Dhar & Akoijam Amitkumar Singh

How much foreign direct investment is taking place in R&D in India? 
MNCs using Indian talent for research but innovation comes out of development in other countries!!!
Is DSIR recognition relevant?

Interesting aspects highlighed in this paper.
1.RDFDI inflows into India during the period of analysis (2004-16)  was Rs. 54862.6 Mn. This constitutes 0.4 per cent of total FDI inflows into India.
2. RDFDI was concentrated in four sectors—ICT, natural sciences and engineering (NSE), pharmaceuticals and clinical research, which accounted for more than 80 per cent of total RDFDI.
3. Only one‐fourth of RDFDI has come to DSIR recognised firms. None of the firms in the ICT sector, which received the maximum RDFDI inflows, has DSIR recognised in‐house R&D units.
4.The share of FDI companies in corporate sector R&D is only 3 per cent.
5. Data collected from USPTO on number of patents granted in which India is an inventor country and assignee country shows that there is a growing trend of companies based in foreign countries taking patent on the outputs of R&D conducted in India. Since 2002, there has been a steady decline in the share of India based inventions receiving India as the assignee country status. Of late, only 15 per cent of the patents granted by USPTO in which India is mentioned as an inventor country, having India as the assignee country; this share was 58 per cent in 2002. 



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