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Insufficient support for deep tech start-ups in India

Introduction

  • Deep tech start-ups—working in cutting-edge fields like artificial intelligence, quantum computing, and advanced manufacturing—are vital for India’s ambition to become a global innovation hub.
  • However, a recent study highlights significant gaps in institutional support from public-funded research and development (R&D) organisations, impeding deep tech incubation and scaling.

Relevance : GS 3(Indian Economy)

Key Findings of the Study

Source: A study commissioned by the Office of the Principal Scientific Adviser (PSA) to the Government of India and conducted by the Confederation of Indian Industry (CII) and the Centre for Technology, Innovation, and Economic Research (CTIER).

  • Limited Support to Start-ups:
    • Only 25% of public-funded R&D organisations offer incubation support to start-ups.
    • A mere 16% support deep tech start-ups (advanced technologies like AI, quantum tech, etc.).
  • Low Industry Collaboration:
    • Only 15% of the organisations collaborated with overseas industries.
  • Restricted Access to Infrastructure:
    • Only 50% of labs opened their facilities to external researchers or students.
  • Expenditure on R&D:
    • 25% of institutions reported spending 75%-100% of their budget on R&D.
    • Median spending on R&D was relatively low in ICAR, CSIR, ICMR, AYUSH, and DST labs.
  • Strategic Sectors Excluded:
    • Defence, Space, and Atomic Energy labs (major contributors to India’s R&D spend) were excluded due to sensitivity.
  • Government Spending Overview:
    • Total Union govt. R&D expenditure in 2020-21: ₹55,685 crore.
    • Excluding strategic sectors: ₹24,587 crore by key scientific agencies.

Human Resource Trends

  • Staffing Patterns:
    • Many labs reported a decline in permanent staff and growing dependence on contractual workers.
  • Youth Participation:
    • Share of young researchers rose to 58% in 2022-23 from 54% in 2021-22.
  • Gender and Mission Contributions:
    • Labs were asked to report on women scientists and their roles in national missions (e.g., Deep Ocean Mission, National Quantum Mission).

Institutional Behaviour and Orientation

  • Shift observed from being pure research centres to innovation hubs, blending academia and product innovation.
  • Dr. Ajay Sood emphasized need for data-driven institutional introspection to identify gaps and realign mandates.

Recommendations

  • All labs should be mandated to review their existing mandates for better alignment with current innovation needs.

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