by the Department of Science and Technology (DST) and the United Nations Industrial Development Organization (UNIDO), has unveiled its findings aimed at bolstering India’s manufacturing competitiveness. Dr. Chandrasekhar, during the launch of the summary report, underlined the Government of India’s commitment to advancing Indian manufacturing and expanding its share in the GDP.
This comprehensive survey provides valuable insights into the factors that enable and hinder innovation among firms. It meticulously assesses the performance of states and sectors concerning manufacturing firms’ ability to develop new products, services, and business processes. Additionally, the survey results shed light on the innovation ecosystem in India, making this report of great interest to policymakers, researchers, and industry practitioners in the field of innovation and economic development.
Dr. Chandrasekhar emphasized that the survey findings can significantly contribute to the goals of the Make-in-India program, particularly the Production Linked Incentive (PLI) schemes designed to stimulate manufacturing across various sectors, including electronics, pharmaceuticals, and automobiles.
Furthermore, Dr. Chandrasekhar stressed the importance of innovators introducing cost-effective innovations that require minimal process changes, resulting in products that are not only more affordable but also environmentally friendly. The manufacturing sector needs to have the capacity to absorb these innovations successfully.
“The NMIS study & findings will contribute to strengthening the baselines to some of the capacities and capabilities, opportunities and challenges in the manufacturing value-chains that require immediate attention,” noted Dr. Chandrasekhar.
The National Manufacturing Innovation Survey (NMIS) 2021-22 builds upon DST’s first National Innovation Survey conducted in 2011. This collaborative study provides a holistic approach to assess manufacturing innovation outcomes, processes, and barriers at the firm level. It also evaluates the performance of states, sectors, and firm sizes.
Dr. Akhilesh Gupta, Secretary SERB, Senior Adviser, and Head PCPM, DST, outlined the survey’s purpose, emphasizing that it offers an empirical understanding of current innovation activities within India’s manufacturing economy. It seeks to address organizational rigidity and facilitate market demand for innovations, while identifying barriers and challenges to technological learning, innovation, and industry development. These insights will inform the formulation of policies, programs, and partnerships to bolster innovation outcomes and benefits.
“The NMIS survey shows that innovation is not yet common in manufacturing but has proved to be profitable for firms. Focus on manufacturing innovation is needed in addition to expanding production,” stated Dr. René Van Berkel, Representative & Head, Regional Office in India, UNIDO.
The NMIS 2021-22 survey comprised two key components:
- Firm-level survey: This segment gathered data on the types of innovations implemented by firms, the innovation process, access to financial resources and information, and the factors influencing innovation activities. Remarkably, one in four firms successfully implemented innovations during the observation period, with over 80% of these firms experiencing significant benefits in expanding markets, boosting production, and reducing costs.
- Sectorial Systems of Innovation (SSI) survey: This section explored the manufacturing innovation system and its role in achieving innovations. The SSI survey assessed interactions between innovation ecosystem stakeholders, identified barriers to innovation, and evaluated the alignment or divergence of policy instruments in five key manufacturing sectors: textiles, food & beverages, automotive, pharmaceuticals, and ICT.
The NMIS 2021-22 engaged 8,087 firms in the firm-level survey and 5,488 firms and non-firms in the SSI survey. The results of the firm-level survey are detailed in the ‘Assessment of Firm-Level Innovation in Indian Manufacturing.’ Additionally, separate reports have been developed for each of the five manufacturing sectors studied: Automotive, Pharmaceutical, Textile, Food & Beverages, and Information & Communication Technologies (ICT).
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