Productivity improvement and higher per capita income can only happen in Tamil Nadu if the State moves up the value chain and for this, enhancing R&D capabilities is critical, said State Industry Minister Thangam Thennarasu.
R&D will not only help in moving the existing base to the next level but also throw open newer and unique business ideas and provide opportunities for next generation entrepreneurs. R&D should be strengthened to open up another era of growth for the State, he said while addressing a virtual conference on ‘R&D as an Engine of Growth of Tamil Nadu’ organised by the Madras Chamber of Commerce and Industry on Wednesday.
‘Entrepreneurship culture’
Tamil Nadu has an entrepreneurship culture across the State and in cities like Chennai, Coimbatore, Tiruchi, Erode, Dharmapuri and Salem, and in diverse sectors like auto, auto components, textiles, apparels, electronics, IT, renewable, engineering and chemicals.
The State has proven competency in engineering designs and product development. There are over 500 engineering colleges and polytechnics and technician institutes churn out over 2 lakh engineers, technicians and professionals every year. There are many researchers thanks to the presence of large companies like Caterpillar, Nissan and Ashok Leyland in the State, he said.
“However, despite all the above, we are not where we have to be. If Tamil Nadu has to reach the target of a $1 trillion economy by 2030 and $100 billion exports, we cannot be complacent with the current level of R&D. The State has tremendous potential and aspiration levels are high. We are a mature economy and we have to move up further in our growth process. We need to create high value employment; export worthy and environmentally sustainable products. For this strengthening R&D is critical,” the Minister added.
‘Collaborate with start-ups’
Finance Minister Palanivel Thiaga Rajan said that the State government can support start-ups, but it is important that it promote start-ups as there are many problems that are unique to the State’s conditions.
“We should be encouraging people by giving them more problem statements and giving instances where the government has intent but does not have the tools or technology to get it done, and encourage them to develop solutions,” he said.
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The government is the lead customer. There are many start-ups that have immediate applications for problems that the government is grappling with from land management to mining and urban development, he said.
‘Value-added jobs’
Industries Secretary S Krishnan said that R&D is imperative to the State’s growth. “Tamil Nadu has the highest gross enrolment ratio in excess of 50 per cent, twice that of the national average. We have a large number of qualified graduates coming out every year looking for jobs. While some find jobs outside the State or country, there are many who still need to be offered jobs within the State,” he said.
There is a need to create more value-added jobs in the State in the years to come and one of the most potent areas where this can happen is the area of R&D,” he said. Tamil Nadu is one of the large economies and R&D will give the State an edge to grow even larger and be the number one economy in the county, he added.