Benefits of research and development are enormous. The purpose of R and D is to generate more ideas or more products and services that the user’s needs or the customers need in a better and more fulfilling way. When it comes to companies the central part is how the companies generate revenue and how they get better over time.
There are two different components to research and development, where one part is research, which is the generation of ideas that is getting a specific knowledge where the other is development where the acquired knowledge is generated into something that is usable and which is an aid to the users or the customer experience.
However the process of technological innovation is complex. Investing in research and development takes place in India as it plays a crucial role in economic and overall nation’s development. It is an important contributor to the economy of any country and hence the growth and sustainability of research and development is important for India.
Reasons to invest more in R&D
It is also becoming an essential factor in the success of companies and economies in the globalized competitive world due to fast paced changing technologies and processes. The companies that consistently invest in research and development outperforms others with effective research and development in which any company can serve the interest of its customers better by offering new products and services. It not only serves customers but also opens up a new field of research which pays the way for future commodities.
It helps companies to set up new trends in the market and take the initial leads in terms of offering unique products and earn higher profits and win customer confidence which helps companies sustain their positions in the market. India’s economic growth has been impressive due to the government policies and acts including science and technology policies increase in spending in research and development, tax incentives with current government policies. There are many opportunities for domestic as well as foreign companies to invest in research and development in India and establish the competitive position in domestic as well as export markets.
MNC’s Iinvesting in R&D
India is rapidly being a top R&D outsourcing station with 60 per cent of new MNCs having established global in-house R&D centres. This is likely to hasten as new MNCs India to set up their bases. As per a study by CII (Confederation of Indian Industry) published in 2017, from among the top 100 global R&D spenders, around 83 of them have an existence in India in some shape or form. Companies like Motorola, Oracle, Microsoft, Intel, IBM and GE have set up their R&D or design centres in India. GE and Bosch have their greatest and second greatest R&D facilities respectively in India.
1. Aster Zeneca:
Located in Bengaluru which is the largest R&D lab outside Sweden. Most of Astra Zeneca’s R&D on tropical disease happens here.
2. Cummins:
Located in Pune and is the second largest R&D center after the US.
3. Bosch:
Situated in Multiple locations and is the second largest facility.
4. General Electric:
Located in Bengaluru. GE’s largest R&D facility in the world, which has the highest concentration of Chemistry and Chemical Engineering in PhDs
5. Schneider Electric SE:
For SE, in terms of number of people employed in R&D, India ranks third.
R&D and Make in India
Make in India is a very purposeful campaign which has gained wide appreciation and popularity within India and worldwide. Make in India is an open invitation to showcase India’s potential to the rest of the world. For “Make in India” to keep up globally, both the corporates as well as the government must be awakened to meet the urgency of stepping up the Indian R&D centres. India must target 2%of GDP for R&D spending if it wants to be considered an innovative country. The government can redistribute and manage its resources, but the real dare is in firing up the corporate sector. An argument is that the R&D benefits given by the Indian government to the industry should benchmark with incentives available for R&D in other BRICS countries as well as the Canada, US , Israel, Ireland , the UK, European Union and Singapore. This would go a great distance to making India truly competitive as an R&D destination.
Education and R&D
Education and R&D are two activities that should always go hand in hand to ensure any nation’s growth. Beginning from investing in knowledge to transforming this knowledge into a greater wellbeing for citizens on the strength of a better stock of products and services at lower cost, mainly those related to health and the quality of life. Education and R&D share other features in common besides their importance as rationales of a country’s progress. Both call for skill and struggle from all stakeholders: researchers, teachers, pupils or managers and engineers. Education and R&D also share the same underlying curiosity and inquisitiveness, continually unearthing new knowledge to drive further success and learning new skills even as this knowledge is being acquired.
Conclusion
Information and innovation are the key ingredients to success. Company’s research and development efforts must be carefully organized, controlled , evaluated and managed in order to produce fruitful results for the company and to add to the overall nation’s economy and productivity.
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