A research template for India Inc bl-premium-article-image

Vipin Sondhi Updated - July 24, 2023 at 08:58 PM.
Significant investment in R&D is a pre-requisite. for companies to thrive in the future | Photo Credit: axel2001

About 25 years ago, when in my mid to late 30s, a school friend, who was then a rising star in the Defence Services, said to me “… “we have to train, be prepared, motivate our people and ourselves every day, over a 35-40 year career, for a game we may never have to play; and actually hope for the good of all, never play”. What struck me at that time as an individual in the corporate sector, and with India opening up to the world, was that it would be imperative for a CEO and his/her organisation to be prepared for a ‘war-like’ situation everyday.

My friend and I spoke at length about the need for self-reliance in critical areas of the economy. There was a dire need for excellence in manufacturing based on domestic research in defence, metals, automobiles, pharma and so many other sectors. Could a ‘war-like’ situation be created for research?

Twenty-five years on, we have made tremendous progress as a nation, but not in research. However, the last few years have been reason for optimism. My latest reason for increased optimism stems from the launch of the National Quantum Mission a couple months ago, and the establishment of the National Research Foundation (NRF) a few days ago. Synergising the capabilities of Industry-Academia-Start-Ups-Research Laboratories — a kind of virtual National Research Quad (NRQ) — with the government as policymaker and enabler, will be a path-breaking initiative.

That we spend only 0.7 per cent of our GDP on R&D, with the US, China, Japan and Korea spending upwards of 2.5 per cent of their GDP, is well known. We have islands of success without doubt. ISRO being a star. So, it can be done!

I am reproducing three of the important features of the NRF Bill, 2023 as put out in the public domain:

The Prime Minister will be the ex-officio President of the Board and the Union Ministers of Science & Technology and Education will be the ex-officio Vice Presidents. The NRF’s functioning will be governed by an Executive Council chaired by the Principal Scientific Advisor to the Union Government.

It aims to encourage collaboration and increased spending by the industry on R&D; and intends to involve colleges and universities in scientific research, as currently less than 1 per cent of the nearly 40,000 higher learning institutions in India are engaged in research.

The NRF will fund and promote research not only in natural sciences, but also in humanities, social sciences and the arts. The NRF will go well beyond the IITs, IISERs, IIMs. It will be holistic by including the liberal arts and humanities.

The implementation of the NRF Bill, as is true for any initiative, is crucial to achieve Atmanirbharta. Industry has a huge role to play, as it contributes under 40 per cent of the 0.7 per cent of GDP spend on R&D. This must change dramatically to at least 60-70 per cent, which is akin to global averages.

This will require war-time leadership from the four arms of the NRQ over the next two decades.

From an industry perspective, i.e., from that of a promoter and/or a CEO, it should be understood that if one is to lead one’s organisation into the future, significant investment in R&D is a pre-requisite. The forces of disruption are only becoming sharper, more frequent. These could be due to a combination of technological, regulatory, societal and demographic and geo-political changes. The auto-construction equipment industry in which I have had the privilege of cutting my teeth, has been disrupted repeatedly by all of these changes and been forced to up its spend on R&D.

Four suggestions

To become truly atmanirbhar and become part of global supply chains, I suggest the following four key thoughts, to be led by the promoter and/or CEOs:

Create a rallying war-cry: This should ideally emanate from a sense of purpose which is relevant to your organisation. Two decades ago, it was ‘Global Quality’. It had became a matter of pride to be able to rub shoulders with the very best on quality and many Indian organisations now compete globally on that basis; MNCs utilise India as a manufacturing base to export. The time is ripe for creating a rallying war-cry for research.

Collaborate, collaborate, collaborate: It is improbable or close to impossible to have the resources to be able to invest in technology by oneself. It is imperative to create an ecosystem compromising a micro-NRQ as relevant to your markets and/or products and services. Collaborate with institutes of higher learning close to your research laboratories on a long-term basis. Nurture them. Invest in them. This is where the NRF can play a major role. Collaborate with your strategic suppliers to create partnerships and incentivise them to become part of your ecosystem. Encourage them to replicate your model of collaboration. Your competitors will find it far more difficult to compete with an ecosystem.

Invest in talent: Continually. The right people with the right skill-sets and capabilities. Hire PhDs, especially those who are already researching on your projects at the academic institutions who you partner. Create a pipeline.

Drive innovation at scale: Innovation should not be left to the R&D department. Innovation must be organisation wide.

To conclude, the government must be complimented in bringing research to the forefront. It is up to the major stakeholders of the NRQ to complement one another to develop a research ecosystem. From childhood. To be curious. To tinker. That the NRF has emanated from the New Education Policy is encouraging. Indian industry must take a leadership position within the NRQ in making India a research-led nation by 2047.

The writer is Chairperson, National Board for Quality Promotion, and former MD and CEO, Ashok Leyland and JCB India

Published on July 24, 2023 15:28

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