Research

1
Research Development for global competitiveness
INDIAN COMPANIES GOING GLOBAL

• K.Vijayaraghavan.CMC.,FIMC
• Director, Sathguru Management Consultants.
• Visiting Faculty, Cornell University.
• vijay_at_sathguru.com

2
Indian technology development mission -
Historical reality

• Public research Quest for self reliance.
• - Military, health care, agriculture
• Socialist economic policy within a democratic
  political framework..
• Central control.. State production control of
  private production. No focus on technology
  transfer.
• Change of direction in 1991

3
Economic growth.

• 14 years of successive growth phase
• Successive upward movement in technology
  application
• Access to global technologies accelerate
  in-licensing in several sectors.
• Engineering, chemicals, life science products,
  mining and metals.. significant technology up
  gradation.
• Combined efforts of public and private sector.

4
RD -GLOBAL INTEGRATION

• RESEARCH TECH TRANSFER IN INDIA
• EARLIER
• Academic oriented - Non-interactive - internally
  focussed
• TODAY
• Interactive - market oriented - Globally focussed

5
The chemistry of research and innovation.

• RD spending triggers innovation
• Innovation stimulates economic growth
• Pace of innovation determines rate of return
• Collaborative partnerships ensure high pace of
  innovation . . .

6
SEVERAL GLOBAL PLAYERS GAIN FROM THIS MISSION

• OPEN DOOR FOR GLOBAL PLAYERS FOR RESEARCH
  COMMERCIALISATION
• FORD, GE, MICROSOFT, ASTRA
• ZENECA, MONSANTO, GSK,
• PFIZER..

7
PERCEPTION OF RESEARCH COLLABORATIVE OPPORTUNITY
IN INDIA

• Macro View- Bringing in scarce knowledge
  Capital for creating wealth by adding to the
  GDP.
• Micro View- Maximising shareholder value.
• Consumer View- Bringing quality products and
  new technology
• MNC View- Accessing the vast potential of Indian
  market Indian talent.

8
INTELLECTUAL PROPERTY

• Historical reverence for intellectual property -
  GURU-SHISHYA OBLIGATION
• Transitional deviations in the past
• Strong urge for global harmonization
• Legal, regulatory commercial framework - WTO
  TRIPS Compliance.

9
Emerging trends in research models.

• Indian ST strength.
• Continued strong focus on research for public
  good.
• Enabling mechanisms
• Research models cross country, cross
  functional.
• Contract and collaborative research.

10
RESEARCH AND DEVELOPMENT PARTNERSHIP IN INDIA
EVOLVING MODEL
PUBLIC RESEARCH CENTERS
INDUSTRY MAJORS
INDUSTRY JUNIORS

• Senior-Junior Symbiotic relationships
• Public private partnerships

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Options in research partnering, product
Development delivery

• Public Public
• Private Private
• Senior Senior
• Senior - Junior
• Public private
• Private Public

12
Public - Private

• Several initiatives
• Indian and global public research institutions
  undertake successful tech. Transfer in
  biological, physical and material sciences to
  private sector.

13
Private - Public

• Donation of technologies from private sector to
  public institutions for public good.
• Tax incentives for such donation abundant in
  the west A model for India to explore??

14
Private - Private

• Senior Senior partnerships vaccine
  consortiums seed sector consortiums
  consortiums for embedded software.
• Senior Junior consortiums sub-licensing
  options outsourcing contract research..

15
Enhanced level of risk taking in research.

• Positive change to risk averse mindset.
• 80s and 90s- demonstrate Indus entrepreneur
  success in silicon valley 6 of total value
  come from indus entrepreneurs. Many University
  spin-offs.
• India joins global consortium with significant
  funding and long term commitment .
• (telecom, public health(AIDS), genomics,
  environment)..

16
Challenges for excellence in Public research?

• Debate on where to invest public funds for
  research.
• Challenge of sustained supply of human capital in
  the public system??
• Addressing ownership issues for publicly funded
  research.
• Public entrepreneurship spin-off opportunities
  venture capital avenues.
• Bringing mindset changes - best practices.

17
The future as we perceive

• India will be among the major out-licensing
  destinations.
• Focus on cutting edge research telecom,
  aerospace, information technology applications,
  agriculture, human health, electronics..
• Global collaborative research will be the focus.
• Public research will complement private research
  with resources and basic research capabilities.
• Global investment will drive research for global
  good from INDIA.

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What will this require?

• This will require successful integration of
  good science and best management practices by
  responsive and accountable organizations.

19
Role of Management Consultants

• MC plays a significant role in bringing best
  practices in
• technology management.
• Interventions relate to
• Research priority setting investment
  analysis.
• Outsource in-house decisions.
• Research services and Technology marketing.
• Seamless integration - post merger
  takeover.
• Balancing cross country cultural, legal,
• regulatory and management practices.
• Exit or GO decisions.

20
Conclusion

• INDIA will play a significant role in
  promoting ethical, responsible and value based
  technology management services that will drive
  economic growth.
• Management Consultants have significant
  potential to drive this growth.