India Ranks Lowest Amongst BRICs in Innovation

[ChinaToday]

Just a few weeks ago, global credit rating agency Standard and Poor’s (S&P) released a study titled, “Will India be the first BRIC fallen angel?” The report suggests that India may become the first “BRIC” country (Brazil, Russia, India and China) to lose its investment grade rating. While it remains to be seen if India can escape this ignominy, the country has earned another dubious distinction: It ranks the lowest among the BRIC nations on the Global Innovation Index 2012.

This innovation index was released recently by the international business school INSEAD and the World Intellectual Property Organization (WIPO) along with the Confederation of Indian Industries (CII), Alcatel-Lucent and Booz & Co. The index ranks 141 countries on the basis of their innovation capabilities and results. Brazil, Russia and China were ranked 58th, 51st and 34th respectively. India stands at the 64th position, two notches below where the country landed last year.

According to the study, “The innovation front in India continues to be penalized by deficits in human capital and research; infrastructure and business sophistication, where it comes last among BRICs, and in knowledge and technology outputs, where it comes in ahead of Brazil only.” The report also notes that the BRIC countries need to invest further in their innovation capabilities to live up to their expected potential.

Vijay Govindarajan, a professor of international business at Dartmouth College and the first professor-in-residence and chief innovation consultant at General Electric, points out that innovation is critical to India’s future. He suggests that the government must provide seed capital to strengthen applications research and create incentives for universities, research labs and industry to collaborate. “Much is at stake if India does not move up on the Global Innovation Index,” Govindarajan says. “Without business model innovations, India cannot solve the problems for 90% of Indians. Such innovations can then be used to launch global strategies. This is the essence of reverse innovation [innovations adopted first in the developing world] — where India can lead.”

As part of the same report, India is ranked second (behind China) in the global innovation efficiency index. (The innovation efficiency index is the ratio of innovation input and innovation output.) Chandrajit Banerjee, director-general of CII notes that innovation efficiency is “a ratio and not a direct measure …. [This implies that] while India can produce innovation output best in the world when equal amounts of input are fed into its innovation ecosystem, it also needs to strengthen certain innovation drivers that will improve the situation.”

Gopichand Katragadda, managing director of General Electric’s John F. Welch Technology Center in Bangalore adds: “The results of the study point to the fact that, in India, the innovation ecosystem (input) is poor while the knowledge/creative output under the constraints is good. One interpretation of this is that we need better government measures on regulations, education and infrastructure to tap the demonstrated potential of talented people.”

According to Katragadda, if India does not get its act together on the innovation front, the country could lose the opportunity “to make this a century of Indian innovation, tapping into the brilliant technical minds of the region.”

India Ranks Lowest Amongst BRICs in Innovation | Knowledge@Wharton Today

 

[Gandhi G in da house]

Just a few weeks ago, global credit rating agency Standard and Poor’s (S&P) released a study titled, “Will India be the first BRIC fallen angel?” The report suggests that India may become the first “BRIC” country (Brazil, Russia, India and China) to lose its investment grade rating. While it remains to be seen if India can escape this ignominy, the country has earned another dubious distinction: It ranks the lowest among the BRIC nations on the Global Innovation Index 2012.

This innovation index was released recently by the international business school INSEAD and the World Intellectual Property Organization (WIPO) along with the Confederation of Indian Industries (CII), Alcatel-Lucent and Booz & Co. The index ranks 141 countries on the basis of their innovation capabilities and results. Brazil, Russia and China were ranked 58th, 51st and 34th respectively. India stands at the 64th position, two notches below where the country landed last year.

According to the study, “The innovation front in India continues to be penalized by deficits in human capital and research; infrastructure and business sophistication, where it comes last among BRICs, and in knowledge and technology outputs, where it comes in ahead of Brazil only.” The report also notes that the BRIC countries need to invest further in their innovation capabilities to live up to their expected potential.

Vijay Govindarajan, a professor of international business at Dartmouth College and the first professor-in-residence and chief innovation consultant at General Electric, points out that innovation is critical to India’s future. He suggests that the government must provide seed capital to strengthen applications research and create incentives for universities, research labs and industry to collaborate. “Much is at stake if India does not move up on the Global Innovation Index,” Govindarajan says. “Without business model innovations, India cannot solve the problems for 90% of Indians. Such innovations can then be used to launch global strategies. This is the essence of reverse innovation [innovations adopted first in the developing world] — where India can lead.”

As part of the same report, India is ranked second (behind China) in the global innovation efficiency index. (The innovation efficiency index is the ratio of innovation input and innovation output.) Chandrajit Banerjee, director-general of CII notes that innovation efficiency is “a ratio and not a direct measure …. [This implies that] while India can produce innovation output best in the world when equal amounts of input are fed into its innovation ecosystem, it also needs to strengthen certain innovation drivers that will improve the situation.”

Gopichand Katragadda, managing director of General Electric’s John F. Welch Technology Center in Bangalore adds: “The results of the study point to the fact that, in India, the innovation ecosystem (input) is poor while the knowledge/creative output under the constraints is good. One interpretation of this is that we need better government measures on regulations, education and infrastructure to tap the demonstrated potential of talented people.”

According to Katragadda, if India does not get its act together on the innovation front, the country could lose the opportunity “to make this a century of Indian innovation, tapping into the brilliant technical minds of the region.”

India Ranks Lowest Amongst BRICs in Innovation | Knowledge@Wharton Today

Something good to take from this . The bold part

 

[Chinese-Dragon]

LOL, Indians keep insulting China for "lacking innovation" yet they are FAR behind us in all the Global Innovation Indexes.

Something good to take from this . The bold part

The global innovation "efficiency" sub-index is a cop out. It's just one part of the overall index, you can't look at one part in isolation.

 

[Icewolf]

lololololoollololol... superpower dreams are gone

 

[Gandhi G in da house]

LOL, Indians keep insulting China for "lacking innovation" yet they are FAR behind us in all the Global Innovation Indexes.



The global innovation "efficiency" sub-index is a cop out. It's just one part of the overall index, you can't look at one part in isolation.

It talks about efficiency in innovation with relation to input and output . Of course it can be seen in isolation .It is something India is relatively good at just behind China .

Of course the overall index is more important but efficiency is important as well

 

[Ammyy]

lololololoollololol... superpower dreams are gone

just read it before making comment

 

[Chinese-Dragon]

It talks about efficiency in innovation with relation to input and output . Of course it can be seen in isolation .It is something India is relatively good at just behind China .

Of course the overall index is more important but efficiency is important as well

So having a high input to output ratio is good, even if the input (and therefore the output) are very low?

What do you think will happen when you increase the input? Of course the ratio will get worse, due to diminishing returns.

It's very easy to say I will put in $1 dollar and guarantee $5 dollars of output (just buy something and resell it), but can you put in $1 billion and guarantee $5 billion output?

And it's even worse with R&D and innovation, you can literally throw billions into a project and come up with crap, just by being unlucky. China knows this well, and apparently so does India if you look at the Kaveri program.

 

[Icewolf]

And F-35..............

 

[Gandhi G in da house]

So having a high input to output ratio is good, even if the input (and therefore the output) are very low?

What do you think will happen when you increase the input? Of course the ratio will get worse, due to diminishing returns.

It's very easy to say I will put in $1 dollar and guarantee $5 dollars of output (just buy something and resell it), but can you put in $1 billion and guarantee $5 billion output?

And it's even worse with R&D and innovation, you can literally throw billions into a project and come up with crap, just by being unlucky. China knows this well, and apparently so does India if you look at the Kaveri program.

Too many ifs and buts in your argument .

As of now India stands second after China among the BRICS in innovation efficiency .You want to accept every index which puts India at the bottom of the BRICS but when the same index puts India in second position for something , you want to create hypothetical situations .

Sorry , we should go by the facts that these indices provide . Indians accept where they are lagging but you should also have the courtesy to give the credit where it is due

 

[sweetgrape]

In fact, I don't see indian creativeness, although they always brag they are more creative than china. Maybe the smart emigrate to USA and western!!

 

[Chinese-Dragon]

Too many ifs and buts in your argument .

As of now India stands second after China among the BRICS in innovation efficiency .You want to accept every index which puts India at the bottom of the BRICS but when the same index puts India in second position for something , you want to create hypothetical situations .

Anyone can grab one small part of an Index to make themselves feel better, but what you don't seem to realize is that if you score highly on one sub-index and score low overall... then you score VERY low on the other sub-indexes.

Here are the actual rankings from the latest Global Innovation Index for the BRIC countries:

China - 34
Russia - 51
Brazil - 58
India - 64

This innovation index was released recently by the international business school INSEAD and the World Intellectual Property Organization (WIPO) along with the Confederation of Indian Industries (CII), Alcatel-Lucent and Booz & Co. The index ranks 141 countries on the basis of their innovation capabilities and results. Brazil, Russia and China were ranked 58th, 51st and 34th respectively. India stands at the 64th position, two notches below where the country landed last year.

And it's interesting to note that India is actually falling downwards in the index.

 

[Roybot]

lololololoollololol... superpower dreams are gone

Yaar thori sharam kar lo, khud ki ranking dekhi hai?

 

[fast]

lololololoollololol... superpower dreams are gone

Well, India did achieve superpower status with a foremost dominance of the world in ground impact smashing with fighter jets. It's a dream come true for India!

 

[Gandhi G in da house]

Anyone can grab one small part of an Index to make themselves feel better, but what you don't seem to realize is that if you score highly on one sub-index and score low overall... then you score VERY low on the other sub-indexes.

Here are the actual rankings from the latest Global Innovation Index for the BRIC countries:

China - 34
Russia - 51
Brazil - 58
India - 64



And it's interesting to note that India is actually falling downwards in the index.

Every body saw the ranking for the BRIC countries in the first post itself . Why are you posting them again ?

Just like these rankings the article also mentions that India is just second to China in innovation efficiency.There is nothing wrong with looking for something positive out of a report as well . There is a reason why they have mentioned it in the article as well. It is because it is important.

I have stated it before that the overall index is more important , no doubt but the efficiency part is important as well . It is an important aspect of the overall index. You can also highlight the other negative aspects of the report for India . Who is stopping you ? That is your job after all .

 

[Roybot]

And it's interesting to note that India is actually falling downwards in the index.

Same with China, down from 29 to 34.