India trails China in R&D spend and innovation capacity:Survey

India accounts about 3 per cent of USD 1.6 trillion of global gross expenditure on research and development (GERD) in PPP (purchasing power parity), which is around five times lower than that of its neighbour China, the Economic Survey said today.

The pre-Budget document also said India's innovation capacity is also lower than that of the other BRICS nations, except Russia.

"The USD 1.6 trillion global gross expenditure on R&D (GERD) in PPP (purchasing power parity) terms for 2014 projected by Battelle and R&D magazine is more than USD 50 billion increase over the previous year.

"In this enormous activity, India's share is around 3 per cent with GERD projected at USD 44 billion, which is around five times lower than that of China," said the Economic Survey, for 2013-14 tabled by Finance Minister Arun Jaitley in Parliament.

It, however said, among business services, research and development (R&D) occupies second position in India's GDP.

"Its growth has been consistently high at near 20 per cent in the last few years. In 2012-13 growth has been at 20.8 per cent," the Survey added.

Quoting from the Global Competitiveness Report 2013-14, the document said: "India's capacity for innovation has been lower than that of BRICS countries (Brazil, Russia, India, China and South Africa) expect Russia."

Though, India scores better than China, Brazil and Russia on quality of scientific research institutions, the research undertaken in such institutions is not percolating down for commercial usage, it added.

This is exhibited through its poor score in university industry collaboration on R&D a compared to some other BRICS nations like China and South Africa, it added.

"Though, India scores better than all BRICS nations on availability of scientists and engineers owing to its large population, the country has one of the lowest ratios of scientists and engineers per million people," it said.

Part of this shortage is attributed to lack of quality higher education institutions. Even with a large population base, India is projected to have 25 per cent shortage of engineers in the country by 2025, the Survey said.

"In terms of patents granted per million population, India fares badly compared to other BRICS countries. In terms of company spending on R&D also, India is far below China," the document added.