Indian companies Expenditure on research and development (R&D) has declined to its lowest level in six years. Of the S&P BSE 500 companies, an analysis of 98 firms (for which continuous data is available over the last decade) shows that their R&D expenditure, on average, came in at 0.54 per cent of net sales. This is the lowest since 2012-13.
The absolute value of R&D expenditure showed a 2.7 per cent fall in FY19, the first decline since at least FY11. Lower expenditure by pharmaceutical companies may be a key reason for the fall. One reason for the huge slowdown is falling R&D spend at pharma majors: facing pricing pressure in the US, Indian drug makers are pruning their research budgets.
And then we wonder why the best brains of our country move abroad or why nobody’s buying our products. We don’t invest in our R&D there is no innovation, there is no utility/novelty, there is no attraction/incentive to buy. I know it is easy to just be an idealist/a keyboard warrior, but the importance of investing in your country’s native R&D is just unassailable. We’re cutting back on our own growth! Have a dedicated amount for your organisation’s R&D and no matter what, don’t touch it! Profits will come.
However,it indicates as to how committed are Indian organizations to innovation and research. Given the fact that business world has become a competitive battle field, this approach of Indian organizations will harm them more.
“India has jumped five places to rank 52 in the Global Innovation Index 2019, up from the 57 it had in last year’s rankings.
India’s rise in the rankings has been a consistent trend over the last few years. It had ranked 81 in 2015, which rose to 66 in 2016, 60 in 2017 and 57 in 2018. “The performance improvement of India is particularly noteworthy,” the report, brought out by the UN World Intellectual Property Organisation, INSEAD and CII, said.
i think the question should be why the Indian enterprises not so keen on innovation budget? once your able to recognize the bottlenecks regarding the same, then you can easily spot-on solution for how it can be done. connecting with the management of enterprises, and having some brainstorming sessions, to have a feasible solution to resolve their bottlenecks can be your USP for innovation budget.