While the Government of India is waiting approval of draft 5th National Science, Technology and Innovation policy, Tamilnadu sate quietly released state R&D policy. It is remarkable in two ways, first most of funding for R&D comes from central government departments and second focus on R&D investment by commercial firms.
Highlights on incentives:
One of the key policy objectives is to boost private R&D expenditure. Private businesses engage in
R&D activities mainly to increase the competitiveness of their products and services and hence
innovation is intrinsic to their growth. Private sector participation in R&D is vital to create an impetus
for innovation-led growth for the State. The Government of
Tamil Nadu recognizes the private sector as the engine of growth of R&D in the State and hence shall
support the business initiatives related to establishment and expansion of R&D Centres and GCCs
through various targeted incentives.
4.2.1. Land Cost Incentive for Standalone R&D Projects
R&D projects shall be given an incentive of 50% of the cost of purchase or lease of land for up to 20 acre,
subject to a ceiling of Rs. 50 lakh/acre.
4.2.2. R&D Training Incentive
R&D Training Incentive of Rs. 10,000 per person per month can be availed for 12 months for the
residents of Tamil Nadu. This incentive is intended for employees engaged in core R&D who have an
undergraduate degree in technology/sciences and a work experience of 7 years, or a post-graduate
degree in technology/sciences and a work experience of 5 years, or a doctorate in sciences/technology.
4.2.3. Enhanced Quality Certification Incentive
Projects obtaining certifications like ISO, ISI, BIS, FPO, BEE, AGMARK, and ECOMARK or any other
national or international certification shall be given a subsidy of 50% of the total cost incurred for
obtaining the certification, as certified by the Chartered Accountant, limited to Rs. 1 cr. for the period of
investment.
4.2.4. Enhanced Intellectual Property Incentive
The Government will reimburse 50% of the expenditure incurred by the Project subject to a maximum
of Rs. 1 cr. for the period of investment for in-house R&D for a patent, copyright, trademarks, and
Geographical Indicators registration and up to Rs 5 cr. for standalone R&D assets.
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