Policies for Industrial R&D
Research and Development (R&D) is an important contributor to the economy of any country and hence growth and sustainability of R&D is vital for a country’s growth. Investments into R&D by both the public and private sectors is equally essential. In developed and emerging economies, the private : public investments into R&D are generally in the range of 2:1. On the other hand, in India, private investments into R&D are estimated at only half of that of the public sector (i.e., 0.5:1). In fact, India is one among the countries which offers a very generous set of (fiscal and non-fiscal) incentives to encourage private participation in the R&D activities. Despite that, there are challenges in advancing and strengthening India’s Industrial R&D (private engagement in R&D) capabilities. This study aims to capture the details of the challenges involved in engaging private sector in the R&D activities in Indian context; and explores the possible policy options that could address some of these identified challenges by having a correlational understanding between the challenges and feasible incentives.