A survey on the degree of innovation among manufacturing firms found that Karnataka, overall, is the most “innovative” State, followed by Dadra and Nagar Haveli, Daman and Diu (DNH&DD), Telangana, and Tamil Nadu.
Telangana, Karnataka, and Tamil Nadu had the highest share of innovative firms at 46.18% ,39.10% and 31.90%, respectively, with Odisha, Bihar, and Jharkhand reporting the lowest share of such firms at 12.78%, 13.47% and 13.71%, respectively.
Nearly three-fourth of the 8,000-odd firms surveyed, most of them micro, small, and medium enterprises (MSME), neither made any innovative product nor business process innovation during the survey period of financial years 2017-2020. However, nearly 80% of the firms that did reported significant gains such as expanding markets and reducing production costs.
The most frequent “barriers to innovation” were the lack of internal funds, high innovation costs, and lack of financing from external sources. Gujarat and DNH&DD reported the highest frequencies of barriers to innovation, despite being among India’s most industrialised States.
The findings are part of the National Manufacturing Innovation Survey (NMIS) 2021-22, a joint study by the Department of Science and Technology (DST) and the United Nations Industrial Development Organization (UNIDO), to evaluate the innovation performance of manufacturing firms in the India. The NMIS 2021-22 study was conducted as a two-pronged survey that examined the innovation processes, outcomes, and barriers in manufacturing firms, and also studied the innovation ecosystem that affects innovation outcomes in these firms. The exercise is a follow-up of the DST’s first National Innovation Survey held in 2011.
“The NMIS survey shows that innovation is not yet common in manufacturing but has proved to be profitable for firms. Focus on manufacturing innovation is needed in addition to expanding production,” said René Van Berkel, Representative & Head, Regional Office in India, UNIDO, said.
Akhilesh Gupta, a senior official of the DST and involved in commissioning the survey, said in a statement that the survey offered an empirical understanding of current innovation activities of the manufacturing economy in India as well as ways to navigate organisational rigidity to facilitate market demand for innovations. “Evidences of the barriers and challenges to technological learning, innovation and development, and up-gradation of Indian industries shall be used for devising policies, programs, and partnerships to strengthen innovation outcomes and benefits,” he added.
