Syllabus: GS3/Economy; Employment; Growth & Development

Context: A recent study commissioned by the Office of the Principal Scientific Advisor to the Government of India, and conducted in collaboration with the Confederation of Indian Industry (CII), has revealed critical structural and operational shortcomings in the support extended to deep technology (deep tech) start-ups by publicly funded R&D institutions in India.

About Deep Tech Start-ups:Deep tech start-ups are rooted in advanced scientific discoveries and engineering innovations, encompassing domains such as artificial intelligence, quantum computing, space technology, biotechnology, and advanced materials.Unlike traditional start-ups—which often rely on business model innovations in sectors like e-commerce, SaaS, or consumer services—deep tech ventures are characterized by:

• Prolonged R&D cycles
• Higher capital intensity and risk
• Strong dependence on foundational science and engineering breakthroughs

Key Findings of the Study:

1. Limited Incubation Support:

• Only 25% of publicly funded R&D institutions provide any incubation assistance to start-ups.
• For deep tech start-ups specifically, this figure drops to merely one in six institutions.

2. Insufficient Industry Engagement:

• Merely 15% of institutions reported collaborations with international industries—reflecting a weak integration with global innovation networks.

3. Restricted Access to R&D Infrastructure:

• Nearly 50% of the institutions do not permit access to their laboratories and research facilities to external stakeholders such as students, start-ups, or independent researchers.
• This restriction undermines open innovation, interdisciplinary research, and technology diffusion.

Budgetary Allocation and Workforce Trends:

R&D Expenditure Patterns:

• The Central Government allocated approximately ₹55,685 crore toward R&D in FY 2020–21, of which ₹24,587 crore was distributed to major scientific agencies.
• While 25% of institutions reported dedicating over 75% of their budgets to core R&D, a significant number fell below this threshold, indicating skewed resource prioritization.

Human Resource Trends:

• A noticeable decline in permanent scientific staff was observed between 2021–22 and 2022–23, replaced increasingly by contractual or project-based hires.
• Although the proportion of young researchers rose to 58% in 2022–23 (from 54% in the previous year), this remains below the 63%–65% levels recorded between 2017 and 2020.

Policy Initiatives and Governmental Support:

1. National Deep Tech Startup Policy (NDTSP):

• Envisioned to create a robust, innovation-led deep tech ecosystem in India.
• Emphasizes economic security, strategic autonomy, and ethical innovation frameworks.

2. National Quantum Mission:

• Facilitates research and commercialization in quantum computing and allied technologies, with applications in drug discovery, life sciences, and climate solutions.
• Indian start-ups like QpiAI are spearheading indigenous quantum innovation.

Recommendations for Strengthening India’s Deep Tech Ecosystem:

Foster Strategic Industry Collaboration:

• Strengthen linkages with both domestic and international industries to scale innovation and enhance technology transfer.

Expand Incubation and Funding Support:

• Develop targeted incubation programs and increase funding for deep tech ventures, given their longer gestation periods and higher capital requirements.

Democratize Access to Research Facilities:

• Ensure open and equitable access to publicly funded R&D infrastructure for non-institutional stakeholders to stimulate collaborative research.

Align Institutional Mandates with National Priorities:

• Reorient R&D objectives to align with the goals of Viksit Bharat@2047, emphasizing strategic research, societal impact, and economic development.