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11JUNE 2017
INNOVATION AND PATENTS
For updated information, please visit www.ibef.orgJUNE 2017 (As of 9 June 2017)
22JUNE 2017 For updated information, please visit www.ibef.org
❖ Executive Summary………….…….………….3
❖ Advantage India…………………….…………4
❖ Market Overview and Trends……….………..6
❖ Porter’s Five Forces Analysis …………...…27
❖ Strategies Adopted…………………….…….30
❖ Growth Drivers………………………………..33
❖ Opportunities………………………………….41
❖ Success Stories………………………………45
❖ Useful Information……………………..…….51
INNOVATION AND PATENTS
JUNE 2017
33JUNE 2017 For updated information, please visit www.ibef.org
EXECUTIVE SUMMARY
Source: Reserve Bank of India, R&D Magazine, International Monetary Fund, World Bank,
CIA Fact Book, OECD, TechSci Research
Note: R&D - Research and Development;
Figures mentioned are as per latest data available
INNOVATION AND PATENTS
Sixth-largest R&D
investor
• India's R&D spend is estimated to reach USD71.5 billion by 2016 from USD66.49 billion in
2015.
• In 2015, India became the world’s 6th largest annual R&D spending country, accounting for
3.53 per cent of global R&D expenditure
• R&D spending in India is anticipated to grow from 0.9 per cent to 2.4 per cent of the
country’s GDP from 2014 to 2034 respectively
Pharma sector driving
R&D growth
• India’s pharmaceutical industry, which accounts for about 1.4 per cent of the global
pharmaceutical industry in value terms & 10 per cent in volume terms, is expected to remain
a major R&D growth driver
Rapidly growing
overseas investment
• Cumulative overseas direct investments by India grew at a CAGR of 38.78 per cent, during
FY08-16, reaching USD289 billion during FY16 from USD21 billion in FY08, global car
makers are also looking to move their R&D investments in India
ADVANTAGE INDIA
INNOVATION AND PATENTS
55JUNE 2017
Growing demand
For updated information, please visit www.ibef.org
ADVANTAGE INDIA
Source: R&D spending estimate by Battelle and R&D Magazine, TechSci Research
Notes: F - Forecast, E – Estimated, IPR - Intellectual Property Rights, CoE - Center of Excellence, PPP - Public Private Partnership, TRIPS - Trade Related Aspects
of Intellectual Property Rights, NMITLI - New Millennium Indian Technology Leadership Initiative, NIC - National Innovation Council;
Figures mentioned are as per latest data available
Robust demand
• Indian companies’ investments in
R&D is not surprising given the
importance of innovation to
sustain competition
• Indian players are set to benefit
from expiration of patents
Attractive opportunities
• Apple has submitted 5 applications with the Indian Patent Office in 2016, for innovations related to digital payments. Facebook is also looking to tap into the mobile wallet market of the country.
• India is the top exporter of IT products & has the 3rd largest pharma sector & a fast growing contract research segment
Policy support
• PPP for promoting exchange of scientific knowledge & R&D
• Strengthening educational infrastructure
• Amendments to the Patents Act (1970) to make it TRIPS-compliant
• Setting up of NIC in 2010
• Adoption of Science, Technology & Innovation Policy 2013
High ratings
• Establishment of CoEs in various
areas; NMITLI initiative on PPP basis
• During 2015-16, increase in
Intellectual Property Rights (IPR)
applications witnessed at a CAGR of
26.9 per cent, with the number
increasing from 262638 to 340000
2015E
R&D
spending:
USD66.49
billion
2016F
R&D
spending:
USD71.48
billion
Advantage
India
INNOVATION AND PATENTS
MARKET OVERVIEW AND TRENDS
INNOVATION AND PATENTS
77JUNE 2017 For updated information, please visit www.ibef.org
EVOLUTION OF INNOVATION AND R&D IN INDIA
Source: Zinnov, Korn/Ferry International, Asia-Pacific Research Center, Stanford University, TechSci Research
Notes: TRIPS - Trade Related Aspects of Intellectual Property Rights, WTO - World Trade Organisation
INNOVATION AND PATENTS
• Indian Patents & Designs
Act (1911)
• Dependence on bulk
imports
• Establishment of CSIR,
DRDO, ICAR, ISRO &
IITs
• Patents Act (1970)
• Recognition of
process patents
only
• Restricted foreign
ownership in Indian
companies
• Focus on ‘reverse
engineering’ among
pharmaceutical
companies
• TRIPS under WTO
(1995)
• Amendments to the
Patents Act (1970) to
make it TRIPS compliant
• Reintroduction of product
patents
• Reduction in tariff & non-
tariff measures
• Easing FDI norms
• Shifting focus in pharma
towards clinical research
& new drug development
Before 1970
Introductory Stage
1970 to early 1990s
Indigenization
Stage
Early 1990s to 2005
liberalisation &
Transition Era
2005 onwards
Growth Era
• Augmentation of network of centrally-funded
institutions and universities
• Increase in R&D & exports in sectors such
as IT, pharma, electronics & automobiles
• Innovations in automobiles such as Nano,
the world’s least expensive car
• Numerous innovations from rural India
• Setting up of National Innovation Council
• Adoption of Science, Technology &
Innovation Policy 2013
• In FY16, 46,904 patents were filed in the
country, of which 6,326 were granted
• During April 2000 to March 2017, total
cumulative FDI inflows in the country stood
at USD332.11 billion
88JUNE 2017 For updated information, please visit www.ibef.org
FORMS OF INTELLECTUAL PROPERTY
Source: Department of Industrial Policy
and Promotion, TechSci Research
INNOVATION AND PATENTS
Intellectual
Property (IP)
Patents
Trademarks
Geographical
Indications
Industrial Designs
Layout Designs
Plant Variety
Protection
Copyright
99JUNE 2017
37
51
46
60
71
77
109
167
396
514
Brazil
Russia
United Kingdom
France
India
Souht Korea
Germany
Japan
China
United States
For updated information, please visit www.ibef.org
INDIA AMONG THE WORLD’S LEADING R&D INVESTORS
INNOVATION AND PATENTS
Source: Nature Magazine, Battelle, TechSci Research
Notes: GERD - Gross Domestic Expenditure on R&D,
R&D - Research and Development; 1 - Data is for May 2015;
Expected expenditure of world’s leading R&D
investors in 2016 (USD billion)India’s R&D investments increased to USD71.48
billion in 2016 from USD66.49 billion in 2015.
R&D investments has helped Indian companies to
overcome tight competition with affordable products
internationally
1010JUNE 2017
61.85
66.49
71.48
2014 2015E 2016F
For updated information, please visit www.ibef.org
INNOVATION AND PATENTS
Source: R&D Magazine, International Monetary Fund, World Bank, CIA Fact Book,
OECD, Department of Science and Technology, TechSci Research
Notes: CAGR - Compound Annual Growth Rate, PPP - Purchasing Power Parity,
R&D – Research & Development, E – Expected, F – Forecast
R&D spending in India (USD Billion)India’s share of global R&D spending rose to 3.53 per cent in2015 from 3.43 per cent in 2014 & is forecast to be at 3.67 percent in 2016
As of March 2017, World Intellectual Property Organization(WIPO) stated that India is emerging as a leader in frugal &demand driven innovation among various countries across theglobe.
In May 2017, the central government introduced variousstartup intellectual property protection schemes to ease patentfiling for startups & promote awareness & adoption of IPrights. Moreover, under these schemes, the centralgovernment bears the fees of the facilitators for patents,trademarks or designs that a startup may file. Startups onlyhave to bear the cost of the statutory fees.
STRONG GROWTH IN R&D INVESTMENTS IN INDIA OVER THE YEARS
1111JUNE 2017 For updated information, please visit www.ibef.org
INDIA HAS BEEN EXPANDING ITS INVESTMENT HORIZON ABROAD
INNOVATION AND PATENTS
Source: Reserve Bank of India, Department Of Industrial Policy &
Promotion (DIPP), TechSci Research
Cumulative overseas direct investment
(USD billion)
Cumulative overseas direct investments increased to
USD332.11 billion in FY17 from USD21 billion in FY08,
leading to significant amount of technology transfer through
industrial acquisitions
For instance, Lupin’s total number of patent filing reached
2,525 in FY16 up from 600 in FY08. In FY16, the company
filed 57 formulation patents, 75 API (Active Pharmaceutical
Ingredient) & 33 in the field of biotech.
Indian inventors contributed 658 patents to IBM, to help
global software giant top the list for US patent recipients in
2016. IBM filed a total of 8,088 US patents, followed by
Samsung Electronics in the 2nd position, with 5,518 patents. 2138
56
100
125146
183
249
289
332
FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17
1212JUNE 2017 For updated information, please visit www.ibef.org
TRADEMARK APPLICATION ACCOUNT FOR MAJOR SHARE OF IPR APPLICATIONS
INNOVATION AND PATENTS
Source: Department of Industrial Policy and Promotion, Intellectual Property India
Report 2015-16, (up to
Dec., 2015) TechSci Research
Note: Figures mentioned are as per latest data available
Break-up of Intellectual Property Rights (IPR)
applications (FY16)
During FY2015-16, the total number of Intellectual Property
Rights (IPR) stood at 251,420
Trademark applications accounted for the largest share of
82.70 per cent, with the total number of applications
standing at 285000 in FY16
Patent & design applications accounted for 14.10 per cent
(35,447 applications) & 3.20 per cent (8035) share,
respectively.
The twin states of Telangana & Andhra Pradesh topped the
list of Indian states for filing patents. According to
Intellectual Property India Report, 2015, Andhra Pradesh
recorded 532 patents while, Telangana recorded 459 patent
applications, witnessing an increase of 25 per cent over the
previous year.
82.70%
14.10%
3.20%
0.01% Trade Mark
Patent
Design
GeographicalIndications
1313JUNE 2017 For updated information, please visit www.ibef.org
IPR APPLICATIONS TRENDING NORTH
Source: Department of Industrial Policy and Promotion, Intellectual Property India Annual Report 2015-16, TechSci Research
Note: Figures mentioned are as per latest data available* (up to Dec., 2015)
Intellectual Property (IP) applications (‘000)
During FY08–16, increase in Intellectual Property Rights (IPR) applications was witnessed at a CAGR of 9.49 per cent, with the
number of applications increasing from 262590 in FY08 to 341087 in FY16.
During FY08-16, the total number of trademark applications increased at a CAGR of 10.92 per cent & reached to 283,060 by the
end of FY16
Patent & design applications rose at a CAGR of 3.65 per cent & 7.13 per cent respectively, during the same period
Growing IP application activity indicates increased in-house R&D & innovation in India
INNOVATION AND PATENTS3
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2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16
Patents Designs Trade Marks Geographical Indications
1414JUNE 2017 For updated information, please visit www.ibef.org
INDIA IS FAST EMERGING AS A GLOBAL R&D HUB … (1/2)
Source: Zinnov Consulting - Crossing the value chasm, TechSci Research
Notes: CAGR - Compound Annual Growth Rate,
MNC – Multinational Corporations
R&D - Research and Development, E – Estimate, F – Forecast
MNC with R&D centers in India
INNOVATION AND PATENTS
CAGR: 4.57%
MNC R&D centers workforce in India
(in 000’)
CAGR: 10.08%
The number of MNC with R&D centers in India has grown
at a CAGR of 4.57 per cent from 721 in 2010 to 943 in
2016.
During 2010-16, the workforce in MNC R&D centers
increased at a CAGR of 10.08 per cent & reached 363,000,
which is estimated to further increase to 387,000 by 2017 in
India.
721776
835872
913 928 943988
10331085
1139
2010 2011 2012 2013 2014 2015 2016 2017E 2018E 2019E 2020E
204 220244
268295
323363
387424
464
508
2010 2011 2012 2013 2014 2015 2016 2017E 2018E 2019E 2020E
1515JUNE 2017 For updated information, please visit www.ibef.org
INNOVATION AND PATENTS
INDIA IS FAST EMERGING AS A GLOBAL R&D HUB … (2/2)
Source: Zinnov Consulting Report 2015, TechSci Research
Notes: CAGR - Compound Annual Growth Rate,
R&D - Research and Development
YoY- Year on Year1 – Source from Capegemini
Vertical-wise distribution of R&D centers in India
(2016)
Until 2005, Tier-1 cities were the favourite destination for
MNCs due to availability of rich talent, favourable policies &
better quality of life
However, post-2005, MNCs have started expanding to Tier-
2 cities, as they offer benefits such as higher catchment
area, lower attrition & cost arbitrage
R&D related investments & processes attain easier
approval from regulatory authorities, globally. This has also
increased focus on new generics
India’s R&D ecosystem has grown at a phenomenal pace in
the last 10 years. 42 per cent of the Global 500 R&D
Spenders have centers in India, with the figure expected to
reach 49 per cent by 2020
India has emerged as the most preferred destinations for
innovation in Asia & the 3rd biggest, globally, with 'Silicon
Valley' of East Bengaluru1 leading the charge.
13
62
7
39
11
90
18
21
22
57
9
20
4
25
68
302
76
4
0 50 100 150 200 250 300 350
Aerospace & Defence
Automotive
Biotechnology
Chemicals & Materials
Diversified
Electrical & Electronics
Energy
Engineering Services
FMCG
Industrial
Media & Entertainment
Medical Devices
Others
Pharmaceuticals
Semiconductors
Software/ Internet
Telecom & Networking
Travel & Transportation
1616JUNE 2017 For updated information, please visit www.ibef.org
INDIA IS ALSO GARNERING THE BENEFITS OF R&D OUTSOURCING
Source: Financial Express, Value Notes, TechSci Research
Notes: R&D - Research and Development,
IT - Information Technology; CAGR - Compound Annual Growth Rate;
Figures mentioned are as per latest data available
Engineering R&D outsourcing in India
(USD Billion)
Companies across sectors (such as IT, consumer electronics,personal devices, medical electronics, telecom & automobiles) arenow offshoring complete product responsibility
India has become one of the most preferred location for engineeringoffshoring
The outsourcing R&D services market in India is expected to reachUSD38 billion by 2030 from USD22.8 billion in 2016.
Newer capabilities such as supply chain, regulatory compliances &manufacturing engineering are being developed by EngineeringR&D Service providers
Service providers in Europe are increasingly looking at scaling up &setting offshore operations in India to access cost effective largetalent pool
In April 2017, India & Russia signed a joint declaration to build aninnovation ecosystem between the two countries. The declaration,which was signed between the Science & Technology (S&T)Department of India and the Ministry of Economic Development ofthe Russian Federation, is expected to promote innovation &technology entrepreneurship in the country.
INNOVATION AND PATENTS
CAGR: 3.71%
22.8
38
2016 2030E
1717JUNE 2017 For updated information, please visit www.ibef.org
GLOBAL 500 COMPANIES PRESENCE IN INDIA
Source: Zinnov – Crossing the value chasm, TechSci Research
Notes: R&D - Research and Development
The top 500 R&D spenders contribute over USD614 billion with
the top 100 R&D spenders alone contributing 66 per cent to the
global R&D spend
In India, TVS Motors, Bosch, Tata Motors, and Mahindra &
Mahindra have topped the list of R&D innovators in the
automobile industry.
Samsung R&D Institute India files the maximum number of
patent applications in the country’s IT sector in 2015-16,
followed by TCS & Wipro
In May 2017, Tata Group announced that the group has
displayed more than 3,300 implemented innovations in its
annual innovation program over the last two years.
INNOVATION AND PATENTS
R&D spending by top six pharma giant FY16
(USD million)352
272.44244
158.16
104.03 10271.79
SunPharma
Dr Reddy Lupin Cipla Cadila Wockhardt Aurobindo
1818JUNE 2017 For updated information, please visit www.ibef.org
Encouraging the private
sector
• The benefit of section 10 (23 G) of the IT Act has been extended to financial institutions that providelong-term capital to hospitals with 100 beds or more
• Government is encouraging the PPP model to improve availability of healthcare services & providehealthcare financing
Encouraging
investments in rural
areas
• The benefit of section 80-IB has been extended to new hospitals with 100 beds or more that are setup in rural areas; such hospitals are entitled to 100 per cent deduction on profits for 5 years
• Under Union Budget 2017-18, government allocated USD5.94 billion for NABARD fund
• In Union Budget 2017-18, Irrigation corpus increased from USD2.97 billion to USD5.94 billion
Source: Union Budget 2014-15, Union Budget 2015-16,
Union Budget 2016-17, Health Ministry, TechSci Research
STRONG POLICY SUPPORT CRUCIAL IN DEVELOPING THE SECTOR
INNOVATION AND PATENTS
Tax incentives
• Import duty on medical equipment has been reduced to 7.5 per cent
• As per Union Budget 2016-17, services provided by National Centre for Cold Chain Development
(NCCD) would be exempted from service tax
• Incentives & tax holidays are being offered to hospitals & dispensaries providing health travel
facilities
Policy Landscape
• India released a new national Intellectual Property Rights Policy, which seeks to enhance Prime
Minister Narendra Modi’s - Make in India scheme, by boosting innovation.
• On the occasion of 9th National Intellectual Property Awards Ceremony held in April 2017, the
Commerce & Industry Ministry conveyed that it is focusing on making the Intellectual Property
Rights policy faster & efficient. Government’s focus on increasing IPR awareness in schools pan
India by launching IPR awareness campaigns was also highlighted.
1919JUNE 2017 For updated information, please visit www.ibef.org
Source: Intellectual Property India Annual Report 2014-15
Note: Figures mentioned are as per latest data available
INNOVATION AND PATENTS
Top 5 Indian Applicants For Patents from Top Institutes and
Research & Development Organizations
S.No. Name of the CompanyApplication
Filled
1 CSIR 288
2 IIT Mumbai 87
3 IIT Chennai 69
4 Fraunhofer Ges Forschung 59
5 National Insititute of Design 58
Top 5 Foreign Applicants
S.No. Name of the Company Application Filled
1 Qualcomm incorporated 1065
2 Ericsson Telephone 723
3 Robert Bosch 505
4 Samsung Electronics Co. Ltd 480
5 Siemens AG 412
INCREASING IN THE PATENT APPLICATION FILING (FY15-16)…..(1/2)
Top 5 Bio Pharma Applicants
S.No. Name of the Company Application Filled
1 Novartis AG 100
2 Wockhardt Ltd. 68
3 Cadila Healthcare 51
4 Bristol Myers Soubb Co. 45
5 Boehringer Sohn Ingelh. 40
Top 5 Foreign Applicants
S.No. Name of the Company Application Filled
1 Honda Motor Co. Ltd. 127
2 Suzuki Motor Corp. 95
3 Robert Bosch GMBH 65
4 Toyota Motor Corp. 52
5 Michelin & Cie-51 51
2020JUNE 2017 For updated information, please visit www.ibef.org
INCREASING IN THE PATENT APPLICATION FILING (FY15-16)…..(2/2)
INNOVATION AND PATENTS
Top 5 Indian Patentees
S.No. Name of the CompanyApplication
Filled
1Council of Scientific & Industrial
Research113
2Samsung R&D Institute India-
Bangalore Pvt. Ltd.55
3 Bharat Heavy Electricals Ltd. 45
4Indian Institute of Technology
(Collective)40
5Defence Research & Development
Organisation32
Top 5 Foreign Resident Patentees
S.No. Name of the CompanyApplication
Filled
1GM Global Technology Operations
Inc.252
2 Qualcomm Incorporated 212
3 LG Electronics Inc. 89
4 Koninklijke Philips Electronics N.V. 68
5 Honda Motor Co. Ltd. 65
Source: Intellectual Property India Annual Report 2014-15
Note: Figures mentioned are as per latest data available
• In April 2017, a website has been launched by numerous colleges in association with the Institute of Electrical & Electronics
Engineers (IEEE). The website will encourage the students to patent the innovations. The colleges that particpated are namely
Thakur College of Engineering & Technology, Sardar Patel Institute of Technology & Alamuri Ratnamala Institute of Engineering &
Technology.
2121JUNE 2017 For updated information, please visit www.ibef.org
KEY PLAYERS IN R&D - SCIENTIFIC AND R&D ORGANISATIONS1 … (1/2)
Source: Organisational Websites, IP India, TechSci Research
Notes: R&D - Research and Development; IP – Intellectual Property, 1 - This list is indicative
INNOVATION AND PATENTS
Organisation Business description
Council of Scientific and Industrial Research (CSIR)
• CSIR is India’s largest R&D organisation, with 38 national laboratories, 39 outreach centers, 3 Innovation
Complexes, 5 units, 4600 active scientists supported by about 8000 scientific & technical personnel. On an
average CSIR files about 200 Indian patents & 250 foreign patents per year. About 13.86 per cent of CSIR patents
are licensed, a number which is above the global average. It is engaged in scientific industrial R&D for economic,
environmental & societal benefits for the country
• Its research areas span across aerospace, biotechnology, chemicals, energy, foods, information dissemination,
leather, metals, minerals & manufacturing etc. CSIR filed 323 patent application in FY16.
Defence Research and Development Organisation (DRDO)
• DRDO is engaged in design & development of weapon systems & equipment in accordance with the requirements
of the military services
• DRDO had a network of 50 labs & establishments to carry out research. It has over 5,000 scientists & about 25,000
other scientific, technical & supporting personnel. DRDO has filed 85 patent application in FY16.
• Its research areas include aeronautics, armaments, combat vehicles, electronics, instrumentation engineering
systems, missiles, materials, naval systems, advanced computing, simulation & life sciences
Indian Council of Agricultural Research (ICAR)
• ICAR is one of the largest national agricultural organisations in the world. It consisted of 99 institutes & 53
agricultural universities across India. ICAR has filed 63 patent application in FY16.
• It is the apex body for coordinating, guiding & managing research & education in agriculture, including horticulture,
fisheries & animal sciences in India.
2222JUNE 2017
INNOVATION AND PATENTS
KEY PLAYERS IN R&D - SCIENTIFIC AND R&D ORGANISATIONS1 … (2/2)
Organisation Business description
India Space Research Organisation (ISRO)
• ISRO is engaged in development of space technology & its application to various national tasks, launched
Mangalyan successfully in its very 1st
attempt2. In FY16, ISRO filed 25 patent application
• The organisation has 19 centers across India to pursue R&D activities & ISRO currently has a constellation of 9
communication satellites, 1 meteorological satellite, 10 earth observation satellites & 1 scientific satellite
• Its research areas include communication satellites for television broadcast & remote sensing satellites for
management of natural resources
• On June 22, 2016, ISROs Polar Satellite Launch Vehicle, PSLV-C34, successfully launched 20 satellites in a single
flight
Indian Council of Medical Research (ICMR)
• ICMR is the apex body in India for the formulation, coordination & promotion of biomedical research & one of the
oldest medical research bodies in the world. ICMR has filed 10 patent applications in 2016.
• The council has a fleet of 21 institutes (mission oriented national institute), 6 regional medical research centers & 5
units engaged in medical research
• The council’s research priorities encompass the areas of communicable diseases, maternal & child health,
nutritional disorders & non-communicable diseases such as cancer, cardio-vascular diseases, blindness &
diabetes
Centre for Development of Advanced Computing (C-DAC)
• C-DAC is a premier R&D organisation of the Department of Information Technology (DIT)
• It is engaged in research in the areas of supercomputers, applied electronics, technology, applications & health
informatics. C-DAC filed 20 patent applications in FY16
Source: Organisational websites, TechSci Research
Notes: R&D - Research and Development,
For updated information, please visit www.ibef.org
2323JUNE 2017 For updated information, please visit www.ibef.org
KEY PLAYERS IN R&D - INSTITUTES AND UNIVERSITIES1 … (1/2)
INNOVATION AND PATENTS
Organisation Business description
Indian Institutes of Technology (IITs)
• It is a group of autonomous engineering & technology oriented institutes of higher education
• Indian Institutes of Technology (IITs) is planning to monetise intellectual properties (IPs) by exploring tie-ups with
firms that invest in "inventions". In FY16, IITs filed 453 patent application.
National Dairy Research Institute (NDRI)
• NDRI is engaged in research, teaching & extension activities in areas of dairy production, processing, management
& human resource development
• Its research activities focus on improving dairy productivity, innovating milk processing technologies &
disseminating information to the various stakeholders in dairy business to make dairying a self-sustaining business
• In 2015, R&D activities comprised 72 in-house & 78 externally funded research projects. In 2014, R&D activities
comprised 19 NAIP projects in consortium model with financial outlay of USD21.95 million. In FY16 NDRI filed 4
patents.
Indian Institute of Science (IISc)
• IISc is one of the earliest instances of PPP for a research institute in India
• It is engaged in research in various departments of science such as biological, chemical, electrical, mathematical,
physical & mechanical sciences. A new center for Brain Research is expected to contribute to future growth
• The number of filed patents increased to 44 during FY16.
Source: Organisational websites, IP India, TechSci Research
Notes: R&D - Research and Development, IP - Intellectual Property,1 - This list is indicative
2424JUNE 2017 For updated information, please visit www.ibef.org
INNOVATION AND PATENTS
KEY PLAYERS IN R&D - INSTITUTES AND UNIVERSITIES1 … (2/2)
Organisation Business description
The Energy and Resources Institute (TERI)
• TERI is engaged in developing solutions to global problems in fields of energy, environment & sustainable
development, has also established research centers in Bengaluru, Goa, Guwahati, Himalayas, Mumbai
• The important research areas include biotechnology, earth science, climate change, technology development,
social transformation & modelling & economic analysis
• Deals in various sector projects such as Agriculture, Coal, Energy, Environment, Industry, Renewable Energy,
Information & Communication Technology, Rural Development, Climate Change, Economy, Forestry & Biodiversity
& etc.
Institute of Life Sciences (ILS)
• ILS undertakes basic & translational research in frontier areas of life sciences
• The institute’s research interests are in the areas of infectious disease biology, gene function & regulation &
translation research & technology development
Indian Institute for Advanced Studies (IIAS)
• IIAS is a residential centre for advanced research in humanities, social sciences & natural sciences
• Its major research areas include social, political & economic philosophy; comparative studies in philosophy &
religion; education, culture & arts; natural & life sciences; & national integration & nation building
Source: Organisational websites, TechSci Research
Notes: R&D - Research and Development, 1 - This list is indicative
2525JUNE 2017 For updated information, please visit www.ibef.org
KEY PLAYERS IN R&D - PRIVATE SECTOR COMPANIES1
INNOVATION AND PATENTS
Organisation Business description
Hindustan Unilever Limited
• HUL is credited with innovations in product areas such as structured bar soap, fairness cream, zero alcohol soap,
poly-coated scouring bar for dishwashing, fortified salt, instant tea, critical components for a water purifying device,
& value-added (nature care) tea
• Worldwide, HUL has over 20,000 registered patents & patent applications
• HUL expenditure on scientific R & D is around USD6.05 million in FY16, where the total revenue expenditure is
USD5.67 million & USD0.38 million expenditure made as a capital expenditure
Tata Steel Limited
• Tata Steel undertakes research in areas such as raw materials & coke, iron & ferro alloys, steel making, coated
products, materials characterisation & joining, materials modelling & product design & refractory technology
• The total value of the patent is around USD16.65 million till FY16.
• The total patents filed was 71 and 32 patents were granted as on FY16.
Cipla Limited
• Cipla’s R&D division focuses on new product development & new drug delivery systems across a range of
therapies
• The company’s total R&D spending increased & reached USD158.16 million in FY16
• In 2016, Cipla filed more than 200 formulation development projects underway of which the top 50 projects address
a market size of US$30 billion based on innovator sales.
• It is among the top companies domestically in R&D spending
Source: Organisational websites, TechSci Research
Notes: R&D - Research and Development, Growth, 1 - This list is indicative
2626JUNE 2017 For updated information, please visit www.ibef.org
Source: Times of India, Economic Times, The Hindu, Defence Now
Notes: ICBM - Inter-Continental Ballistic Missile, DRDO - Defence Research & Development Organisation,
HSL - Hindustan Shipyard Limited, LCA – Light Combat Aircraft
INNOVATION HAS BEEN A CORNERSTONE OF THE COUNTRY’S DEFENCE SECTOR
INNOVATION AND PATENTS
INS Vikrant
• India Indigenous
Aircraft Carrier (IAC)
• Total displacement of
over 40,000 tonnes
• Being built by Cochin
Shipyard Ltd.
• Expected to be
Commissioned in
2017
Agni-V missile
• Successfully test fired in April 2012
• India joined an elite group of nations having ICBM technology
• Indigenously developed by DRDO
• Nag has been developed in 2016, being a fire & forget, lockon-before-launch (LOBL), anti-tank guided missile.
Arihant Class Submarines
• With its launch in 2009, India joined an elite group of nations having nuclear-powered submarines
• Developed by HSL
• In 2016, the 1st
indigenous Sonar dome has been developed to scan the submarines threat & is attached at the bottom of the ship
Tejas
• 2nd supersonic aircraft
to be developed
indigenously by
Hindustan
Aeronautics Ltd.
(HAL)
• In July 2016, LCA
Tejas aircraft was
inducted into the
Indian Air Force
PORTERS FIVE FORCES ANALYSIS –
HEALTHCARE & BIOTECHNOLOGY
INNOVATION AND PATENTS
2828JUNE 2017 For updated information, please visit www.ibef.org
PORTERS FIVE FORCES ANALYSIS – HEALTHCARE
Source: TechSci Research
Note: R&D – Research and Development
INNOVATION AND PATENTS
Competitive Rivalry
• In a bid to discover the next block buster drug, competition between
the pharma companies are intense
• In addition, expiry of patents will also lead to further competition from
generic drug manufacturers
Threat of New Entrants Substitute Products
Bargaining Power of Suppliers Bargaining Power of Customers
• Huge R&D expenditure
requirement reduces threat of
new entrant
• Government regulation is strict
for this industry
• Bargaining power of suppliers
in this industry is high because
quality of products & timely
delivery matter & there is less
number of quality suppliers in
this industry
• Bargaining power of customers
is low due to undifferentiated
products
• Cheaper generic formulations
pose a threat to healthcare
companies
Competitive
Rivalry
(High)
Threat of New
Entrants
(Low)
Threat of
Substitute
Products
(Low)
Bargaining
Power of
Customers
(Low)
Bargaining
Power of
Suppliers
(High)
2929JUNE 2017 For updated information, please visit www.ibef.org
PORTERS FIVE FORCES ANALYSIS – BIOTECHNOLOGY
Source: TechSci Research
Note: R&D – Research and Development
INNOVATION AND PATENTS
Competitive Rivalry
• High entry barriers due to the capital-intensive nature of the industry
has reduced competitive rivalry
• Entry of new players in the market has led to increased competition.
However, given the low success rate, rivalry is low
Threat of New Entrants Substitute Products
Bargaining Power of Suppliers Bargaining Power of Customers
• Capital intensive nature of
industry reduces the threat of
new entrants
• Strict government regulation
• Suppliers’ power is low
because the raw materials are
largely undifferentiated
• Individual buyers do not have
influence on pricing
• However, government price
control enhances buyer’s
power
• Patent protection stops the
threat of alternative drugs &
chemicals for a period of time
Competitive
Rivalry
(Moderate)
Threat of New
Entrants
(Low)
Substitute
Products
(Low)
Bargaining
Power of
Customers
(Low-Moderate)
Bargaining
Power of
Suppliers
(Low)
STRATEGIES ADOPTED –
HEALTHCARE & BIOTECHNOLOGY
INNOVATION AND PATENTS
3131JUNE 2017 For updated information, please visit www.ibef.org
STRATEGIES ADOPTED – HEALTHCARE
Source: Company website, TechSci Research
Note: R&D – Research and Development
• Private players in the industry are making their supply chain efficient & leveraging economies of scope
to reduce cost. One such example is Narayan Hrudayalaya (NH) where health care is provided at
affordable cost. NH reduces cost by
• High procurement of medical supplies
• High-volume by high capacity utilisation and staff productivity
• Good human capital management (i.e. training)
• Leveraging the benefit of Information Technology to reduce cost & improve healthcare delivery
• Developing new & innovative healthcare services will help players in differentiating themselves from
others
• Healthcare providers are also trying to provide better services to differentiate themselves
• Players in Healthcare sector are heavily spending on R&D.
• Sun Pharma is focusing on specialty & chronic therapies such as neurology, oncology, dermatology,
rather than competing in anti infective & gastrointestinal therapies markets. Sun Pharma attained
volume & value leadership in many of these therapies
• Certain players in industry focus only on providing one kind of health care service to its customers &
gain expertise through research in the area. This also helps them to be the leader in that service. One
such example is Tata Memorial Hospital which is focused on treatment of cancer & provides leading
cancer treatment in India
Cost leadership
Differentiation
Focus
INNOVATION AND PATENTS
3232JUNE 2017 For updated information, please visit www.ibef.org
STRATEGIES ADOPTED – BIOTECHNOLOGY
Source: Company website, TechSci Research
Notes: R&D – Research and Development
• Higher emphasis on technological innovations that will improve efficiency & help in achieving cost
leadership. For example, Serum Institute of India is the leader in manufacturing vaccines against
Rubella, Tetanus, Measles, Diphtheria & it supplies vaccines to more than 100 countries across
the globe. Due to high volume sales the company has relatively low manufacturing cost
• Investing heavily on R&D to create new & innovative products. Biocon has subsidiaries, Syngene
International Ltd. & Clinigene International Ltd., these companies have been set up to focus on
clinical trials, drug discovery & development.
• Companies are creating barriers by applying for patents to curb replication of the drug by other
manufacturer. For example, until March 2016, Panacea filed over 1,500 patent applications,
including 230 in India
Cost leadership
Differentiation
Creating barriers
INNOVATION AND PATENTS
GROWTH DRIVERS
INNOVATION AND PATENTS
3434JUNE 2017 For updated information, please visit www.ibef.org
STRONG DEMAND AND POLICY SUPPORT DRIVING INVESTMENTS
Source: Battelle, Electronics for You, Organisational websites, TechSci Research
Notes: PPP - Public Private Partnership, R&D - Research and Development,
NMITLI - New Millennium Indian Technology Leadership Initiative,
CoE - Centre of Excellence, NIC - National Innovation Council
INNOVATION AND PATENTS
Policy support
PPP in R&D
Strengthening
educational
infrastructure
Amendments to the
Patents Act &
Setting up of NIC
Inviting Resulting
in
Growing demand
Evolving consumer
lifestyles
Liberalisation &
increasing competition
Proximity to future
growth markets
Increasing investments
Establishment of CoEs,
NMITLI initiative
Providing support to
global projects from
India
Increasing corporate
R&D investments
3535JUNE 2017 For updated information, please visit www.ibef.org
PHARMACEUTICAL SECTOR DRIVING R&D GROWTH
INNOVATION AND PATENTS
Source: TechSci Research
R&D spending by top six Pharma giants in FY16
(USD million)
India’s pharmaceutical market is highly fragmented, with
300 large & 18,000 mid-sized & small companies
The country’s pharma industry accounts for about 1.4 per
cent of the global pharma industry in value terms & 10 per
cent in volume terms
Indian healthcare sector, one of the fastest growing
industry, is expected to advance at a CAGR of 17 per cent
during 2011–20 to reach USD280 billion
This would help drive R&D growth in India; the average
R&D expenditure by Indian pharma companies is close to 6
per cent of total revenues
In January 2017, “Innovate in India” a strong intellectual
property framework to encourage innovation & to promote
development in India for new products & processes to make
India a pharmacy hub.
352
272.44244
158.16
104.03 10271.79
3636JUNE 2017 For updated information, please visit www.ibef.org
POLICY SUPPORT AIDING GROWTH IN THE SECTOR … (1/2)
INNOVATION AND PATENTS
PPP in R&D
• Exchange of scientific knowledge between research centers, national laboratories, institutes of higher
learning & the industry
• The Indian Government plans to involve the private sector in R&D mainly for sectors like vaccines,
drugs & pharmaceuticals, super computing, solar energy & electronic hardware. The govt. has
announced to create a USD16 million fund for setting up R&D units with the help of industries
• The government has created a USD1.1 billion public-private partnership fund to support R&D in India
Funded institutions and
foreign universities
• Government has announced to set up 5 new All India Institute of Medical Sciences in Jammu &
Kashmir, Punjab, Tamil Nadu, Himachal Pradesh, Assam & set up of IIT in Karnataka & Dhanbad
• Foreign universities permitted to enter the higher education system in India by establishing their own
campuses or joint ventures with existing universities
• Atal Innovation Mission with USD24.84 million will boost the academicians, Entrepreneurs &
researchers to work towards innovation
Science & Technology
• In Union Budget 2016-17, Government of India has announced its plans to make 10 public & 10
private institutions as world class teaching & research institutes
• Under Union Budget 2017-18, Central Government is planning to establish 100 India International
Skills Centres, across the country
Source: Battelle, Electronics for You, Union Budget 2015-16,
Organisational websites, TechSci Research
Note: PPP - Public Private Partnership
3737JUNE 2017 For updated information, please visit www.ibef.org
INNOVATION AND PATENTS
POLICY SUPPORT AIDING GROWTH IN THE SECTOR … (2/2)
National Innovation
Council (NIC)
• In 2010, NIC was set up to implement strategies for inclusive innovation in India & prepare a roadmap for
innovation over 2010-20, idea is to build a domestic model to cater to Indian needs
• Tasks of NIC include creating a framework to encourage innovation by central & state governments,
universities, R&D institutions & SMEs
• NIC build digital database of innovations across sectors & at grassroot. In addition NIC has also set up
sectorial Innovation council in Maharashtra
• NIC & the Ministry of Micro, Small & Medium Enterprises (MSME) jointly created India Inclusive
Innovation Fund (IIIF), currently IIIF investment limit is restricted to USD82 million & it invests in sectors
like healthcare, water, energy & agriculture.
Source: Battelle, TechSci Research
Note: SMEs - Small and Medium Enterprises
Atal Innovation
Mission
• Atal Innovation Mission (AIM) established in NITI Aayog with initial funding worth USD24.56 million for
promotion of R&D sector. The mission aims at providing innovation promotion platform to academicians,
entrepreneurs & researchers.
• Atal Innovation Mission would provide the framework to government for encouraging & promoting self
employment in Indian youth
Patents
(Amendment) Rules,
2016
• The time limit for filing response to 1st Examination Report (FER) has been reduced to 6 months.
• With a maximum of 2 adjournments hearings can now be conducted through video conferencing as well
as audio visual communication devices.
• Maximum fees for sequence listings would be USD1850, wherein, cost per page would be almost USD12.
3838JUNE 2017 For updated information, please visit www.ibef.org
SCIENCE TECHNOLOGY AND INNOVATION (STI) POLICY 2013
Source: TechSci Research
INNOVATION AND PATENTS
Introduction of STI
Policy 2013
• In January 2013, the Government of India introduced the Science, Technology & Innovation
(STI) policy 2013 at the centenary sessions of the Indian Science Congress held at Kolkata
Vision of STI Policy• The STI policy is aimed at helping India become one of the top 5 global scientific powers by
2020, by taking advantage of large demographic pool of engineers & science graduates
Rising involvement of
the private sector
• STI aims to boost innovation through R&D led by the Public-Private Partnership (PPP)
mode thereby increase the investments on R&D to 2 per cent of GDP by 2017 from current
1 per cent
Increase in human
resources
• The policy seeks to increase the number of full-time R&D personnel by 66 per cent over
2013–17 & expand the number of publications from the current 3.5 per cent of global share
to around 7 per cent by 2020
3939JUNE 2017 For updated information, please visit www.ibef.org
RECENT INVESTMENTS IN R&D BY KEY PLAYERS
INNOVATION AND PATENTS
Source: India Electronic News, Moneycontrol, CNBC, Economic Times, Appliancemagazine.com,
Business Standard, The Hindu, Company websites, TechSci Research
Note: R&D - Research and Development
2013
• Jan 13: DuPont has double
their R&D activities in India
• April 13: Yamaha
announced the
establishment of a R&D
centre in India
• Jun 13: Huawei has set up
a new R&D centre in
Bengaluru with an
investment of USD150
million
• Jul 13: OneOcean
Corporation has set up
ClipCard Technology
(R&D) centre in India
• Oct 13: Carraro India has
set up a new R&D centre in
India
• Jan 22: Intel India to invest
over USD120 million to
expand its Bengaluru R&D
center
• Mar 07: BASF opens
global R&D center in
Mumbai
• Sep 10: Valvoline
Communications Ltd (VCL)
a JV between Ashland Inc
& Cummins India Ltd will
open its R&D centers in
Ambernath near Mumbai
in Maharashtra
20142015
• August 2015: Foxconn
announced to invest USD5
billion in India over next 5
years to set up R&D
centers & manufacturing
plants
• May 2015: Ford Motor
company have announced
to invest around
USD829.46 million in R & D
center Chennai
• July 2015: Lupin, has
decided to invest
USD185.63 million in the
pharma sector.
2016
• May 2016: Royal Enfieldannounced its plans toinvest USD91.7 million insetting up 2 new R&Dcenters, one of which wouldbe setup in Chennai, inFY17
• Mar 2016: Daikin, underMake in India initiative, isplanning to invest aroundUSD91 billion to establishR&D centre & amanufacturing unit inRajasthan
• 2015-16: In FY16, thefollowing have been spentin R&D: Sun Pharma:US$342.56 billion, DrReddy's LaboratoriesUS$266.25 billion, LupinUS$257.62 billion, CiplaUS$153.95 billion, AlembicPharma US$37.93 & AjantaPharma US$22.16 billion.
4040JUNE 2017 For updated information, please visit www.ibef.org
INNOVATION AND PATENTS
RECENT INVESTMENTS IN R&D BY GOVERNMENT
Source: India Electronic News, Moneycontrol, CNBC, Economic Times, Union Budget,
Appliancemagazine.com, Business Standard, The Hindu, Company websites, TechSci Research
Note: R&D - Research and Development
NMITLI-New Millennium Indian Technology Leadership Initiative
Centers of Excellence
(CoEs)
• In 2015, National
Association of Software &
Services Companies
(NASSCOM), Department
of Electronics &
Information Technology
(DeitY) & Education &
Research Network
(ERNET) jointly has
formed Center of
Excellence with the seed
funding done by
government.
• COEs are generally run on
PPP model
• CoEs have been set up in
the areas of telecom,
wireless technology, bio-
informatics, lasers,
optoelectronic devices &
nano-electronics
NMITLI
• The programme identifies
areas for development
based on national
consultation & invites best
partners from institutions,
academia & private sector
to play a role in the
process
• NMITLI have received a
budgetary allocation of
USD4.91 million under the
Union Budget 2015-16. It
has initiated 60 largely
networked projects in
diverse areas involving 85
industry partners & 280
R&D groups from different
institutions with investment
outlay of USD114 million
Centrally funded institutesCentral and foreign
universities
• New universities in 16
uncovered states
• The remaining 14 new
Central Universities will be
set up as world class
centers of excellence at
different locations
• Foreign universities can
enter higher education
system in India by having
their own campuses or joint
ventures with existing
universities
• 12 teacher education
courses & 3 new
programmes have been
upgraded
• These institutes together
account for over 80 per cent
of the total PhDs in
engineering in India
• In Union Budget 2016-17,
government has announced
to make 10 public & 10
private institutions as world
class institutes
• Budget 2017: One national
testing agency, UGC
reforms, autonomy for
universities proposed.
Students to be free of
‘burden’ of preparing for
multiple exams.
OPPORTUNITIES
INNOVATION AND PATENTS
4242JUNE 2017 For updated information, please visit www.ibef.org
Source: ARAI, Business Standard, India Law Office, Deloitte, TechSci Research
Notes: IT - Information Technology, ARAI - Automotive Research Association of India,
NVH - Noise, Vibration and Harshness, ANDA – Abbreviated New Drug Application,
US FDA – United States Food and Drug Administration
INNOVATION AND PATENTS
Pharma and healthcare
• Indian healthcare sector, one of the fastest growing industry, is expected to advance at a CAGR of
22.87 per cent during 2015–20 to reach USD280 billion
• Contract research is one of the fastest growing segment in the Indian healthcare industry. CRAMS
industry is estimated to reach USD18 billion in 2018 and expected to witness a strong growth at a
CAGR of 18-20 per cent during 2015-18
• Indian pharmaceuticals market is estimated to reach around USD30 billion in 2015. The country’s
pharmaceutical industry is expected to expand at a CAGR of 12.89 per cent over 2015–20 to
reach USD55 billion
• The number of ANDA approvals granted by US FDA increased from 109 in FY15 to 201 in FY16 to
the Indian companies
Information Technology
(IT)
• India is seen as a product development destination
• Companies are offshoring their product responsibilities including complex services like product
management
• NASSCOM of India signed IoT Innovation Agreement with Georgia Tech.
Automobiles
• Research is being carried out by individual companies as well as industry associations such as
ARAI in various areas such as structural dynamics, safety, NVH & electronics
• India is the 6th largest auto market in the world & is poised to become the 3rd largest by 2020
OPPORTUNITIES (1/2)
4343JUNE 2017 For updated information, please visit www.ibef.org
Source: ARAI, Business Standard, Planning Commission,
India Law Office, TechSci Research
Notes: IT - Information Technology, ARAI - Automotive Research Association of India,
NVH - Noise, Vibration and Harshness, DBT – Department of Biotechnology
INNOVATION AND PATENTS
Biotechnology
• By FY25, India’s biotech industry is estimated to increase to USD100 billion from USD27.58 billion in 2016
• Protein & antibody production & fabrication of diagnostic protein chips are promising areas for investment
• Stem cell research, cell engineering & cell-based therapeutics are other areas, wherein India will cash in its
expertise
Agriculture
• India has the potential to become a major producer of transgenic rice & several Genetically Modified (GM)
or engineered vegetables
• Hybrid seeds, including GM seeds, represent new business opportunities in India based on yield
improvement
• According to International Service for the Acquisition of Agri-Biotech Applications, India has the fourth
largest area covered under genetically modified crops
• In India, 11.57 million hectares of area is covered under genetically modified crops which is majorly
dominated by Bt cotton.
• In 12th Five-Year Plan, DBT has proposed to support 10 agricultural universities through R&D grants to
promote R&D on agriculture
• In Union Budget FY17, the government, under the Accelerated Irrigation Benefit Programme (AIBP), would
ensure to complete 23 irrigation projects, before March 2017
OPPORTUNITIES(2/2)
4444JUNE 2017 For updated information, please visit www.ibef.org
Source: Zinnov - Crossing the value chasm
Notes G500 – Global 500 companies
INNOVATION AND PATENTS
OPPORTUNITIES OF JOB CREATION BY GLOBAL 500 COMPANIES
There is a potential to create 200,000 R&D jobs by global
500 companies in the next 5 years
During 2013-18, R&D headcount is expected to increase at
a CAGR of 15.8 per cent
Around 50 per cent of the global 500 companies present
have more than 10 per cent of the global headcount in India
Talent pool for R&D in the country is expected to grow at a
CAGR of 10.9 per cent from present 0.6 million to 1 million
by 2020.
928 MNCs & 1165 R&D centers together employ 55 per
cent of India’s total R&D installed talent base. The
workforce is expected to increase to 0.52 million by 2020
Software/Internet domain account for over 37 per cent of the
total MNC R&D installed workforce
176
366
313
229
489
595
2013 2018
R&D headcount Remaining addressable population
R&D headcount by G500 (‘000)
R&D Talent Distribution
6,10,000
10,20,000
2015 2020
CAGR: 11%
SUCCESS STORIES
INNOVATION AND PATENTS
4646JUNE 2017
38
26
75
42 6
0
10
8
45 57
26
84
42
12
41
39 5
8 75
5 14 17 4
3 47
23
2
31
4
41
FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16
Formulation Patents API/Process Patents NCE Patents
For updated information, please visit www.ibef.org
Source: Lupin website, Lupin Reports
Notes: API - Active Pharmaceutical Ingredient, CNS - Central Nervous
System, NSAIDS - Non-Steroidal Anti-Inflammatory Drugs,
TB - Tuberculosis, NCE - New Chemical Entity
Patents filed by LupinLupin is a renowned pharma player having a wide range of
quality, affordable generic & branded formulations & APIs
Lupin has emerged as the 5th largest & among the top 5
fastest-growing companies in the US
It is one of the world’s largest manufacturers of TB drugs &
has significant market share in the cardiovascular,
diabetology, asthma, paediatrics, CNS, Anti-infectives &
NSAIDs therapy segments
By FY16, Lupin’s total patent filing reached 2,525 up from
600 in FY08
The company is amongst the fastest growing in top 10
generic pharmaceutical players in Japan & South Africa
INNOVATION AND PATENTS
LUPIN: ON A HIGH GROWTH PATH … (1/2)
4747JUNE 2017
822.51006.7
1250.9
1484.6
1742.11839.2
2090.2 2093.1
FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16
For updated information, please visit www.ibef.org
INNOVATION AND PATENTS
LUPIN: ON A HIGH GROWTH PATH … (2/2)
Source: Lupin website
Notes: CAGR - Compound Annual Growth Rate
Lupin net sales (USD million)Its revenues increased from USD822.5 million in FY09 to
USD2.09 billion in FY16, at a CAGR of 14.3 per cent
Lupin’s domestic formulations business grew by 6.6 per
cent recording revenues of USD518.1 million for FY16 in
comparison with USD486.1 million for FY15CAGR: 14.3%
4848JUNE 2017 For updated information, please visit www.ibef.org
INFOSYS: NURTURING INNOVATION IN IT … (1/2)
INNOVATION AND PATENTS
Indian IT patent applications ( FY16)Infosys has 3rd highest number of patents applications in India
Research activity for different areas is allocated amongst
dedicated labs such as Software Engineering lab, Convergence
lab, Security & Privacy lab, Distributed Computing lab & E-Com
lab
During FY11-17, the company’s revenues increased at a CAGR
of 9.24 per cent to USD10.2 billion in FY17 from USD6.0 billion
in FY11
During the same period, net profit expanded at a CAGR of 6.01
per cent to USD2.13 billion in FY17 from USD1.5 billion in FY11
Infosys spent USD52.2 million in R&D expenses during FY17
As of November 2016, Infosys through its innovation fund
invested USD 2.17 million in UNSILO, a Danish-based artificial
intelligence start up
Source: Office of the Controller General of Patents,
Designs and Trademarks Annual Report, Intellectual Property India Annual
Report 2014-15, Company Annual Reports, TechSci Research
Income and net profit (USD billion)
HCL
Indian Institute of Technology(Collective)
Wipro Limited
TCS
Samsung R&D Institute India
6 6.9
7.4
8.2
8.7
9.5
10.2
1.51.7 1.7 1.8
2 2.05 2.13
0
0.5
1
1.5
2
2.5
0
2
4
6
8
10
12
FY11 FY12 FY13 FY14 FY15 FY16 FY17
Sales Net Profit
4949JUNE 2017 For updated information, please visit www.ibef.org
INNOVATION AND PATENTS
TCS: NURTURING INNOVATION IN IT… (2/2)
Source: Company Annual Reports, TechSci Research:
Note: CAGR - Compound Annual Growth Rate
Sales and net profit (USD billion)During FY09–17, the company’s revenues increased
at a CAGR of 14.31 per cent, reaching USD17.5
billion in FY17 from USD6 billion in FY09
During the same period, net profit expanded at a
CAGR of 17.14 per cent to USD3.9 billion from
USD1.1 billion
TCS spent USD171.3 million in R&D & innovation
expenses during FY16, out of which total sum spent
on R&D was USD36.2 million in the same year
6 6.3
8.2
10.4
11.6
13.6
15.7
16.6
17.5
1.11.5
22.2
2.6
3.2 3.33.7
3.9
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
0
2
4
6
8
10
12
14
16
18
20
FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17
Sales Net Profit
5050JUNE 2017 For updated information, please visit www.ibef.org
HUL: A LEADING INNOVATOR IN FMCG
INNOVATION AND PATENTS
Source: Economic Times, Company Annual Reports,
Company website, TechSci Research
Notes: CAGR: Compound Annual Growth Rate,
Strong research and development (USD million)Incorporated in 1933, HUL is India’s leading company
by sales in the Fast-Moving Consumer Goods (FMCG)
sector in India. British-Dutch company Unilever owns a
majority stake of 52 per cent in HUL
HUL has won the top FMCG award at the Dun &
Bradstreet Corporate Awards 2015
Hindustan Unilever Ltd. (HUL) has been ranked No. 31
in India on the Forbes list of Most Innovative
Companies across the globe for 2016.
The company has over 20,000 registered patents &
patent applications worldwide
HUL is also driving innovation in various categories
such as oral care, personal products & soaps &
detergents etc.
19
22
34.4
20.7
15.1
10.28.8
4.4
FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17
USEFUL INFORMATION
INNOVATION AND PATENTS
5252JUNE 2017
INDUSTRY ASSOCIATIONS
Automotive Research Association of India (ARAI)Survey No 102, Vetal Hill, Off Paud Road, Kothrud,
Pune - 411 038
Tel: 91-020 30231111
Fax: 91-020 25434190
E-mail: info@araiindia.com
Website: www.araiindia.com
Indian Society for Clinical Research (ISCR)c/o Pfizer center, 5, Patel Estate, S.V.Road, Jogeshwari(West),
Mumbai-400 102
Tel: 91-022 26774140, 66932028
E-mail: info@iscr.org
Website: www.iscr.org
The South India Textile Research Association (SITRA)13/37, Avanashi Road, Coimbatore - 641 014
Tel: 91-422 2574367, 6544188
Fax: 91-422 2571896
Email: sitraindia@dataone.in
Website: www.sitra.org.in
For updated information, please visit www.ibef.org
INNOVATION AND PATENTS
5353JUNE 2017
GLOSSARY … (1/2)
API: Active Pharmaceutical Ingredient
ARAI: Automotive Research Association of India
CAGR: Compound Annual Growth Rate
CoE: Center of Excellence
DRDO: Defence Research and Development Organisation
FDI: Foreign Direct Investment
FY: Indian Financial year (April to March)
So FY10 implies April 2009 to March 2010
GDP: Gross Domestic Product
GERD: Gross Domestic Expenditure on Research and Development
HAL: Hindustan Aeronautics Limited
HSL: Hindustan Shipyard Limited
For updated information, please visit www.ibef.org
INNOVATION AND PATENTS
5454JUNE 2017
GLOSSARY … (2/2)
IAC: Indigenous Aircraft Carrier
ICBM: Intercontinental Ballistic Missile
IT: Information Technology
NMITLI: New Millennium Indian Technology Leadership Initiative
NVH: Noise Vibration and Harshness
PPP: Public Private Partnership
PPP: Purchasing Power Parity
R&D: Research and Development
TRIPS: Trade Related Aspects of Intellectual Property Rights
USD: US Dollar
WTO: World Trade Organisation
Wherever applicable, numbers have been rounded off to the nearest whole number
For updated information, please visit www.ibef.org
INNOVATION AND PATENTS
5555JUNE 2017
Year INR equivalent of one USD
2004–05 44.81
2005–06 44.14
2006–07 45.14
2007–08 40.27
2008–09 46.14
2009–10 47.42
2010–11 45.62
2011–12 46.88
2012–13 54.31
2013–14 60.28
2014-15 61.06
2015-16 65.46
2016-17 (E) 66.95
Year INR equivalent of one USD
2005 43.98
2006 45.18
2007 41.34
2008 43.62
2009 48.42
2010 45.72
2011 46.85
2012 53.46
2013 58.44
2014 61.03
2015 64.15
2016 (Expected) 67.22
Exchange rates (Fiscal Year)
For updated information, please visit www.ibef.org
EXCHANGE RATES
Exchange rates (Calendar Year)
Source: Reserve bank of India,
Average for the year
INNOVATION AND PATENTS
5656JUNE 2017
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INNOVATION AND PATENTS