Table Of ContentIndia’s Innovation Blueprint
CHANDOS
ASIAN STUDIES SERIES:
CONTEMPORARY ISSUES AND TRENDS
Series Editor: Professor Chris Rowley,
Centre for Research on Asian Management,Cass Business School,
City University,UK; HEAD Foundation,Singapore
(email: [email protected])
Chandos Publishing is pleased to publish this major Series of books entitled Asian Studies: Contemporary Issues and Trends.
The Series Editor is Professor Chris Rowley,Director,Centre for Research on Asian Management,City University,UK and
Director,Research and Publications,HEAD Foundation,Singapore.
Asia has clearly undergone some major transformations in recent years and books in the Series examine this
transformation from a number ofperspectives:economic,management,social,political and cultural.We seek authors from
a broad range of areas and disciplinary interests:covering,for example,business/management,political science,social
science,history,sociology,gender studies,ethnography,economics and international relations,etc.
Importantly, the Series examines both current developments and possible future trends. The Series is aimed at an
international market of academics and professionals working in the area.The books have been specially commissioned
from leading authors.The objective is to provide the reader with an authoritative view ofcurrent thinking.
New authors:we would be delighted to hear from you ifyou have an idea for a book.We are interested in both shorter,
practically orientated publications (45,000+ words) and longer,theoretical monographs (75,000–100,000 words).Our
books can be single,joint or multi-author volumes.If you have an idea for a book,please contact the publishers or
Professor Chris Rowley,the Series Editor.
Dr Glyn Jones Professor Chris Rowley
Chandos Publishing Cass Business School,City University
Email:[email protected] Email:[email protected]
www.chandospublishing.com www.cass.city.ac.uk/faculty/c.rowley
Chandos Publishing: Chandos Publishing is an imprint of Woodhead Publishing Limited. The aim of Chandos
Publishing is to publish books ofthe highest possible standard:books that are both intellectually stimulating and innovative.
We are delighted and proud to count our authors from such well known international organisations as the Asian Institute
of Technology,Tsinghua University,Kookmin University,Kobe University,Kyoto Sangyo University,London School of
Economics,University of Oxford,Michigan State University,Getty Research Library,University of Texas at Austin,
University of South Australia,University of Newcastle,Australia,University of Melbourne,ILO,Max-Planck Institute,
Duke University and the leading law firm Clifford Chance.
A key feature of Chandos Publishing’s activities is the service it offers its authors and customers.Chandos Publishing
recognises that its authors are at the core ofits publishing ethos,and authors are treated in a friendly,efficient and timely
manner. Chandos Publishing’s books are marketed on an international basis, via its range of overseas agents and
representatives.
Professor Chris Rowley:Dr Rowley,BA,MA (Warwick),DPhil (Nuffield College,Oxford) is Subject Group leader and the
inaugural Professor ofHuman Resource Management at Cass Business School,City University,London,UK,and Director
ofResearch and Publications for the HEAD Foundation,Singapore.He is the founding Director ofthe multi-disciplinary
and internationally networked Centre for Research on Asian Management (http://www.cass.city.ac.uk/cram/index.html) and
Editor ofthe leading journal Asia Pacific Business Review(www.tandf.co.uk/journals/titles/13602381.asp).He is well known and
highly regarded in the area,with visiting appointments at leading Asian universities and top journal Editorial Boards in the
UK,Asia and the US.He has given a range oftalks and lectures to universities,companies and organisations internationally
with research and consultancy experience with unions,business and government,and his previous employment includes varied
work in both the public and private sectors.Professor Rowley researches in a range of areas,including international and
comparative human resource management and Asia Pacific management and business.He has been awarded grants from the
British Academy,an ESRC AIM International Study Fellowship and gained a 5-year RCUK Fellowship in Asian Business and
Management.He acts as a reviewer for many funding bodies,as well as for numerous journals and publishers.Professor
Rowley publishes extensively,including in leading US and UK journals,with over 370 articles,books,chapters and other
contributions.
Bulk orders:some organizations buy a number of copies of our books.If you are interested in doing this,we would
be pleased to discuss a discount.Please email [email protected] or telephone +44 (0) 1223 891358.
India’s Innovation
Blueprint
How the world’s largest
democracy is becoming an
innovation superpower
G E M
EORGE BY ATHEW
Chandos Publishing
Oxford •Cambridge (cid:129)New Delhi
Chandos Publishing
TBAC Business Centre
Avenue 4
Station Lane
Witney
Oxford OX28 4BN
UK
Tel:+44 (0) 1993 848726
Email:[email protected]
www.chandospublishing.com
Chandos Publishing is an imprint of Woodhead Publishing Limited
Woodhead Publishing Limited
Abington Hall
Granta Park
Great Abington
Cambridge CB21 6AH
UK
www.woodheadpublishing.com
First published in 2010
ISBNs:
978 1 84334 229 8
(Chandos Publishing)
978 0 85709 145 1
(Woodhead Publishing)
© G.E.Mathew,2010
British Library Cataloguing-in-Publication Data.
A catalogue record for this book is available from the British Library.
All rights reserved.No part of this publication may be reproduced,stored in or introduced into
a retrieval system, or transmitted, in any form, or by any means (electronic, mechanical,
photocopying,recording or otherwise) without the prior written permission of the Publishers.
This publication may not be lent,resold,hired out or otherwise disposed of by way of trade in
any form of binding or cover other than that in which it is published without the prior consent
of the Publishers.Any person who does any unauthorised act in relation to this publication may
be liable to criminal prosecution and civil claims for damages.
The Publishers make no representation,express or implied,with regard to the accuracy of the
information contained in this publication and cannot accept any legal responsibility or liability
for any errors or omissions.
The material contained in this publication constitutes general guidelines only and does not
represent to be advice on any particular matter.No reader or purchaser should act on the basis
of material contained in this publication without first taking professional advice appropriate to
their particular circumstances. All screenshots in this publication are the copyright of the
website owner(s),unless indicated otherwise.
Typeset by Domex e-Data Pvt.Ltd.
Printed in the UK and USA.
To dad, who took risks to give us a better life; to mum who
instilled the love of books, and taught me the English
alphabet; and to Dipti, Ashish and Arpith who complete me.
List of figures and tables
Figures
2.1 A three-dimensional framework is necessary to put
the data for India into perspective 8
3.1 China and India together make up barely one-third of
the United States in terms of GDP 31
6.1 Unprecedented growth in the number of patents awarded
to India 86
8.1 The end goal of nurturing rural innovation is not always
a patentable idea 123
9.1 India needs a firm mechanism to deliver fundamental
inputs for innovation 148
9.2 India needs a diverse portfolio of innovation initiatives 152
Tables
1.1 Modern India’s 100-year journey is consistent with
the growth of most G7 countries 2
2.1 There are distinct stages of development that
characterise national growth 21
2.2 India is ahead of other BRIC countries in terms of
Business sophistication and ahead of the US in
terms of Financial market sophistication 22
ix
India’s Innovation Blueprint
3.1 Top five developing country exporters by category
of service ranked on 2005 export values 29
4.1 Global Competitiveness Index comparisons of
G20 countries: India needs to close the
competitiveness gap 56
6.1 Growth in the number of patents awarded to India is
unprecedented in recent times 85
6.2 An impressive number of patents have been filed in
India in the last 5 years 87
9.1 Fundamental differences in public vs. private sector
R&D need to be included in the design of a national
innovation system 146
x
Acknowledgments
This book would have never materialised without the direct and indirect
contribution and inspiration of numerous individuals. In 2004, Arindam
Banerji, a scientist and entrepreneur in Silicon Valley, wrote a series of
articles in Rediff.com entitled ‘Innovation: Where has India succeeded
and failed’. Banerji opened my eyes to the opportunities facing, and
failures of, the current R&D ecosystem in India. Banerji helped me to
answer a fundamental question I have long been thinking about, without
which I could not have proceeded with the book: why does an Indian
engineer or scientist do well in Silicon Valley, Bell Labs and at NASA and
not in India? The answer was simply that Indian innovators lacked the
ecosystem of resources – a network of government-funded agencies, labs,
universities, an innovation-obsessed private sector, venture capitalists,
financiers, market developers and a non-profit research sector. The
inspiration to focus on ecosystem came from such individual writers and
the discussions I have had with many of them.
Rita Teotia gave me several hours of her holiday time, for which I am
very grateful. Rita’s understanding of rural development and issues at the
grass roots level as a leading Indian bureaucrat provided priceless input to
the book. I am grateful to my mentor and friend, Kenny Jeyachandran, who
worked for IBM in India before the company left in 1978, for his diligent
and honest review of the manuscript. Although Infosys, my employer, has
had no direct involvement in this book project, the many lessons I learnt
working in various roles at the company and its customers have contributed
to my understanding of global innovation. My gratitude goes to my
Australian managers, Ashok Mysore and Anand Santhanam, who have
been extremely supportive especially during the final stages of the book.
My Editor-Publisher at Chandos, Glyn Jones, has been a motivator par
excellence. He not only believed in the value of the book but he also
believed that I could do it. In part it was his sole encouragement as I
changed roles and countries that drove me to complete the project. I am
indebted to him for being much more than my publisher. To Patrick Smith,
copy editor at Chandos, thank you for making my ramblings presentable.
xi
India’s Innovation Blueprint
I have been deeply enthused by the work of organisations such as the
World Economic Forum, the World Bank and UNDP and their relentless
focus on innovation and India. Over the last 10 years, the media, notably
Time, Newsweek, BusinessWeek, Fortune and the Economist, ran several
cover stories and editorials on emerging India. Many of these articles have
been stimulating and are quoted in this book. I am also grateful to
Sivakumar Surampudi, Chief Executive of Agri Businesses at ITC Ltd, and
Tony Surtees, former VP at Yahoo Commerce Division and CEO of
Hyperlocaliser, for their reviews and timely comments. Both these
gentlemen are innovators and lead entrepreneurial lifestyles solving
problems through ingenuity and innovation. I would also like to thank my
colleagues, well-wishers and friends whose genuine concern, critique,
instant supply of references and tips on perseverance kept me going,
notably Lily Efferin, Samit & Shailja Chandra, Samson David, Anant &
Naintara Sahay, and Richard Watson.
I couldn’t have done this without the support of my family. Dipti, my
wife, will take the credit for what she calls the wind beneath my wings. She
put up with me and shouldered the responsibilities of the family tirelessly
during the days I battled with deadlines while juggling it with my day job.
Ashish and Arpith also deserve a mention. The boys missed several of their
weekend outings, play dates and holidays for the sake of this book. Sonny
Zachariah, my father-in-law, not only read through the manuscript several
times and offered suggestions, he also supported me with ideas on making
the book an influential and pragmatic one.
Last but not least, I am indebted to the Author and Finisher of my
faith who, though not having written a single word himself, has been the
subject of countless books through the centuries, even the first book ever
printed, and whose words have transformed more lives, even my own,
than any author or innovator ever can. Thank you all.
xii
About the author
George Eby Mathewis an electrical and electronics engineer by training.
Since 1992, he has tracked globalisation, innovation and the emergence
of India’s technology industries and has authored over 300 related
articles, including advisory notes and book chapters as a journalist,
analyst and researcher.
As a former journalist with Indian Express, George reported on the
emergence of the liberalising Indian economy in the early 1990s. George is
currently a Business Consultant with Infosys Australia based in Sydney.
Prior to this, he was Head of IT Management Research at Infosys’ centre
for innovation and R&D at SETLabs (Software Engineering &
Technology Laboratory). He was also an analyst for Gartner. More details
are at http://www.georgeebymathew.com. Photo Credit: Christlphoto.com.au.
xiii
