Why in the News?

The Union Cabinet has recently approved a ₹1-lakh crore Research Development and Innovation (RDI) scheme to encourage private companies to invest more in basic scientific research.

What are the aims and design of the ₹1-lakh crore RDI scheme?

• Promote Private Investment in Basic Research: The scheme aims to shift the R&D funding balance by incentivising the private sector to invest in foundational scientific research, reversing the current trend where the government contributes around 70% of total R&D spending.
• Special Purpose Fund under ANRF: A dedicated fund will be set up within the Anusandhan National Research Foundation (ANRF), which will act as a custodian of ₹1-lakh crore and offer low-interest loans to eligible research projects.
• Single-Window Clearance Mechanism: ANRF is designed as an independent institutional body with oversight from the Ministry of Science, providing a streamlined funding mechanism for universities and research institutions.
• Targeting Mid-Stage Innovations (TRL-4 and Above): The scheme prioritises projects at Technology Readiness Level 4 or above, focusing on research that has demonstrated lab-scale feasibility and market potential, rather than early-stage, high-risk science.

Why is ANRF’s role in research funding considered innovative?

• Single-Window Clearance for R&D Funding: The Anusandhan National Research Foundation (ANRF) offers a unified platform to fund research across academic and industrial institutions, reducing bureaucratic delays. Eg: Instead of applying to multiple agencies like DST, DBT, and CSIR, universities can now approach ANRF for consolidated support.
• Private Sector Integration in Basic Research: ANRF aims to source 70% of its budget from private players, incentivising corporate investment in long-term, foundational science rather than only market-ready products. Eg: Tech companies can fund AI or clean energy research at IITs through ANRF, blending commercial interest with academic innovation.
• Bridging Academic-Industry Gaps: By acting as a funding bridge between universities, startups, and industries, ANRF fosters collaboration that accelerates the conversion of research into scalable solutions. Eg: A university developing a green hydrogen prototype can partner with a renewable energy firm under ANRFguidance and funding.

How does the TRL-4 condition affect R&D inclusivity?

• Excludes Early-Stage Fundamental Research: The requirement of Technology Readiness Level-4 (TRL-4) support means only projects with demonstrated application potential are eligible. This excludes TRL-1 to TRL-3 projects, which involve basic, foundational research. Eg: A university lab studying the quantum behaviour of materials may be denied funding despite its long-term potential.
• Narrows Innovation Pipeline: Focusing only on mid-to-late stage research limits the scope for high-risk, high-reward innovation, which often begins at lower TRLs. This curbs diverse and disruptive innovations from entering the ecosystem. Eg: Internet and GPS started as risky low-TRL military projects—India might miss such breakthroughs by ignoring early research.

Why does brain drain persist despite new research schemes?

• Limited Research Infrastructure and Bureaucracy: Many Indian institutions lack state-of-the-art labs, smooth funding access, and administrative efficiency, discouraging cutting-edge work. Eg: A 2023 study by IISc found that over 40% of PhD graduates in STEM preferred postdoctoral positions abroad due to better facilities and research environments.
• Lack of Competitive Salaries and Academic Freedom: Indian researchers often face lower salaries, rigid hierarchies, and limited autonomy compared to global peers. Eg: According to a DST report, Indian scientists earn 3–4 times less than those in OECD nations, prompting talent to settle in countries like the US and Germany.
• Weak Industry-Academia Collaboration: Private sector investment in R&D is low, leading to few applied research opportunities or innovation ecosystems. Eg: In South Korea, over 75% of R&D is industry-funded, whereas India’s share is just around 37%, limiting prospects for applied researchers.

Way forward: 

• Strengthen Research Ecosystems and Autonomy: Invest in world-class infrastructure, streamline funding mechanisms, and provide greater academic freedom to scientists and institutions to pursue innovative research without bureaucratic hurdles.
• Enhance Industry Collaboration and Incentives: Foster stronger industry-academia linkages by offering tax benefits, matching grants, and innovation clusters to attract private R&D investment and create lucrative opportunities for researchers in India.

Mains PYQ:

[UPSC 2024] What are the intellectual property rights with respect to life materials? Although, India is second in the world to file patents, still only a few have been commercialized. Explain the reasons behind this less commercialization.

Linkage:  The article discusses the Union Cabinet’s approval of a ₹1-lakh crore Research Development and Innovation (RDI) scheme aimed at incentivizing the private sector to invest in basic research. This PYQ directly addresses the challenge of commercialization of patents in India, a critical bottleneck in the country’s innovation ecosystem that the implicitly highlights by article.

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