Innovation and Patents: Industry Report ,March 2013
Transcript of Innovation and Patents: Industry Report ,March 2013
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Innovation and Patents
For updated information, please visit www.ibef.org
MARCH
2013
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Contents
Advantage India
Market overview and trends
Growth drivers
Success stories: Ranbaxy, Infosys
Opportunities
Useful information
For updated information, please visit www.ibef.org
Innovation and Patents MARCH2013
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Innovation and Patents
For updated information, please visit www.ibef.org ADVANTAGE INDIA
Advantage India
MARCH
2013
Advantage
India
Rising income and evolving lifestyleshave led to higher demand foraspirational products
Indian companies investments inR&D is not surprising given theimportance of innovation to sustain
competitive edge
Vast opportunities in IT,pharmaceuticals,
automobiles, biotechnology andagriculture
India is the largest exporter ofIT products and has the thirdlargest pharma sector with a fast
growing contract researchsegment
Establishment of CoEs in various areas;NMITLI initiative on PPP basis
Increased investments by private players;
setting up of R&D centres
During FY06-10, trademark and patentapplications increased at a CAGR of 13per cent and 9 per cent respectively
PPP for promoting exchange ofscientific knowledge and R&D
Strengthening educationalinfrastructure
Amendments to the Patents Act (1970)to make it TRIPS-compliant
Setting up of National InnovationCouncil in 2010
R&D
spending:
USD41.3
billion
2012E
R&D
spending:
USD38
billion
2011
Source:2012 R&D spending estimate by Battelle, 2012 R&D Funding Forecast, Battelle, Electronics for You,
Automotive Research Association of India, Business Standard, Aranca Research
Notes: CoE - Centre of Excellence, PPP - Public Private Partnership, TRIPS - Trade Related Aspects of Intellectual Property Rights,
NMITLI - New Millennium Indian Technology Leadership Initiative, E - Estimate
Strong demand Attractive opportunities
Quality and affordabilityPolicy support
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Contents
Advantage India
Market overview and trends
Growth drivers
Success stories: Ranbaxy, Infosys
Opportunities
Useful information
For updated information, please visit www.ibef.org
Innovation and Patents MARCH2013
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55For updated information, please visit www.ibef.org MARKET OVERVIEW AND TRENDS
Evolution of innovation and R&D in India
Innovation and Patents
Indian Patents and
Designs Act (1911)
Dependence on bulk
imports
Establishment of
CSIR, DRDO, ICAR,
ISRO and 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 and non-
tariff measures
Easing FDI norms
Shifting focus in pharma
towards clinical research
and new drug development
Augmentation of network of
centrally-funded institutions
and universities
Increase in R&D and exports
in sectors such as IT, pharma,
electronics and automobiles
Innovations in automobiles
such as Nano, the worlds
least expensive car
Focus on discovery of new
chemical entities by pharma
companies
Numerous innovations from
rural India
Setting up of National
Innovation Council
Introductory stage
Indigenisation
stage
Liberalisation and
Transition era
Growth era
Source: Korn/Ferry International, Asia-Pacific Research Centre, Stanford University, Aranca Research
Notes: TRIPS - Trade Related Aspects of Intellectual Property Rights, WTO - World Trade Organisation
Before 1970
1970-early
1990s
Early 1990s-
2005
2005 onwards
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Share of knowledge intensive production in Indias GDP increased from 8.6 per cent
to 14.0 per cent during 2005-10
Absolute growth in knowledge intensive production was at a CAGR of 17.2 per cent
Much of the knowledge intensive production is from the services sector
Majority of the companies incorporated in the past eight years belong to the
knowledge-intensive sector
Share of knowledge intensive production in GDP
Source: UNESCO Science Report 2010, Battelle survey
Aranca Research
Note: GDP - Gross Domestic Product
Innovation and Patents
8.6%
9.6% 10.4%
11.1% 11.6%
14.0%
0%
2%
4%
6%
8%
10%
12%
14%
16%
2005 2006 2007 2008 2009 2010
MARCH
2013
Rising share of knowledge intensive sectors
in India
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9.2% 9.0%9.6%
11.1%
16.9%
1990 1995 2000 2005 2008
For updated information, please visit www.ibef.org MARKET OVERVIEW AND TRENDS
The share of high-tech products in Indias manufactured exports increased to 16.9
per cent in 2008 from 9.2 per cent in 1990
India has become worlds largest exporter of IT services since 2005
Exports of aerospace products are growing at a fast pace; space research aloneaccounts for about 12 per cent of GERD in India
High-tech content of manufactured exports
Source: UNESCO Science Report 2010, Aranca Research
Notes: GERD - Gross Domestic Expenditure on R&D, R&D - Research
and Development , IT- Information Technology
Innovation and Patents MARCH2013
Share of tech-intensive products and
services in exports has been rising
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FDI outflow from India expanded at a phenomenal CAGR of 45.0 per cent from
USD6 million to USD14.8 billion during 1990-2011
This has led to significant amount of technology transfer through industrial
acquisitions
For instance, Tata Steels takeover of Corus brought with it more than 80 patents
and 1,000 researchers
FDI outflow (USD million)
Source: UNCTAD, Battelle, Aranca Research
Innovation and Patents
Increasing acquisitions abroad
Notes: FDI - Foreign Direct Investment,
CAGR - Compound Annual Growth Rate
MARCH
2013
6 119514
2,985
14,626 14,752
1990 1995 2000 2005 2010 2011
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During FY06-11, patent applications increased at a CAGR of 9 per cent from 24,505
to 34,000 and design applications increased at a CAGR of 6 per cent from 4,949 to
6,500
Trademark applications rose at a CAGR of 16 per cent over FY06-FY11 to 179,317
Growing IP application activity indicates increased in-house R&D and innovation
Intellectual Property (IP) applications
Source: Office of the Controller General of Patents,
Designs and Trademarks
Innovation and Patents
Rising number of IP applications
Notes: CAGR - Compound Annual Growth Rate,
R&D - Research and Development
86
179
2537
5 7-
50
100
150
200
FY06 FY07 FY08 FY09 FY10 FY11
Thousand
s
Trademarks Patents Designs
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Around 30 per cent of the top 1,000 global R&D spending organizations have
centers in India
Most of the centers are located in metro cities - Bangalore, Delhi, Mumbai, Chennai
and Hyderabad. However, MNCs have begun spreading out to tier-2 cities after 2005
A robust talent pool supports the increasing R&D activity
MNC R&D centers in India
Source: Zinnov Consulting, The Indian R&D Landscape, 2012
Notes: CAGR - Compound Annual Growth Rate,
R&D - Research and Development
Innovation and Patents
297
699
871
2001 2006 2011
MARCH
2013
India is fast emerging as a global R&D hub
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Source: Battelle, 2012 R&D spending estimate by Battelle, 2012
R&D Funding Forecast, Aranca Research
Innovation and Patents
In 2011, India had the eighth largest annual R&D investment in world
The countrys share in global R&D spending rose to 2.8 per cent in 2011 from 2.6
per cent in 2010, and is forecasted to edge up to 2.9 per cent in 2012
24 per cent of US firms plan to expand R&D operations in India
Indias R&D investment growth is likely to outpace overall GDP growth - during
2010-12, R&D spending (PPP) is expected to surge at a CAGR of 12.7 per cent to
USD41.3 billion; GDP (PPP) growth is likely to be 9.4 per cent (CAGR) during the
same period
India aims to increase R&D spending to 2 per cent of GDP under the Twelfth Five-
Year Plan (2012-17)
R&D spending in India
Notes: E - Estimate, R&D - Research and Development,
PPP - Purchasing Power Parity
32.5
38.0
41.3
0.80%
0.85% 0.85%
0.77%
0.78%
0.79%
0.80%
0.81%
0.82%
0.83%
0.84%
0.85%
0.86%
20
25
30
35
40
45
50
2010 2011 2012E
USD billion
R&D expenditure (PPP) AS a % of GDP (right axis)
MARCH
2013
Strong growth in R&D investments in the
country over the years
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Innovation and Patents
Source:Battelle, Aranca Research
Notes: GERD - Gross Domestic Expenditure on R&D,
R&D - Research and Development, PPP - Purchasing Power Parity
Worlds leading R&D investors (2011)
Country GERD PPP (USD billion)
United States 427.2
China 174.9
Japan 152.1
Germany 87.9
South Korea 52.7
France 49.2
United Kingdom 40.7
India 38.0
Brazil 27.5
Canada 27.0
MARCH
2013
India is edging ahead in the global scene in
terms of expenditure on R&D
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Source: Organisational websites, Aranca Research
Notes: R&D - Research and Development
*This list is indicative
OrganisationBusiness description
Council of Scientific and Industrial Research (CSIR)
CSIR is Indias largest R&D organisation, with 39 laboratories and 50 field stations. CSIR filed the highest number
of patent applications in FY11
It is engaged in scientific industrial R&D for economic, environmental and societal benefits for the country
Its research areas span across aerospace, biotechnology, chemicals, energy, foods, information dissemination, leatherand metals, minerals and manufacturing etc.
Defence Research and Development Organisation (DRDO)
DRDO is engaged in design and development of weapon systems and equipment in accordance with the requirements
of the military services
In 2012, DRDO had a network of 50 labs and establishments to carry out research. It has over 5,000 scientists and
about 25,000 other scientific, technical and supporting personnel
Its research areas include aeronautics, armaments, combat vehicles, electronics, instrumentation engineering systems,
missiles , materials, naval systems, advanced computing, simulation and 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 and 53
agricultural universities across India in 2012
It is the apex body for coordinating, guiding and managing research and education in agriculture, including horticulture,
fisheries and animal sciences in India
Innovation and Patents MARCH2013
Key players in R&D - Scientific and R&D
organisations* (1/2)
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Source: Organisational websites, Aranca Research
*This list is indicative
OrganisationBusiness description
India Space Research Organisation (ISRO)
ISRO is engaged in development of space technology and its application to various national tasks
The organisation has 19 centres across India to pursue R&D activities
Its research areas include communication satellites for television broadcast, telecommunications and meteorological
applications, and remote sensing satellites for management of natural resources
Indian Council of Medical Research (ICMR)
ICMR is the apex body in India for the formulation, coordination and promotion of biomedical research and one of the
oldest medical research bodies in the world
The council has a fleet of 21 institutes, six regional medical research centers and five units engaged in medical research
The councils research priorities encompass the areas of communicable diseases, fertility control, maternal and child
health, nutritional disorders, and non-communicable diseases such as cancer, cardio-vascular diseases, blindness and
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 and health
informatics.
CDAC has filed 16 patent applications in FY11
Innovation and Patents MARCH2013
Key players in R&D - Scientific and R&D
organisations* (2/2)
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Source: Organisational websites, Aranca Research,Notes: FY - Financial Year,
PPP - Public Private Partnership, NAIP - National Agricultural Innovation Project
*This list is indicative
OrganisationBusiness description
Indian Institutes of Technology (IITs)
It is a group of autonomous engineering and technology oriented institutes of higher education
In FY11, IITs filed the highest number of patent applications amongst all the institutes and universities in India. IIT
Bombay filed 58 patent applications in FY11 which is highest among all IITs
National Dairy Research Institute (NDRI)
NDRI is engaged in research, teaching and extension activities in areas of dairy production, processing, management and
human resource development
Its research activities focus on improving dairy productivity, innovating milk processing technologies and disseminating
information to the various stakeholders in dairy business to make dairying a self-sustaining business
In 2012, R&D activities comprised 71 in-house and 46 externally funded research projects, including 20 NAIP projects
in consortium mode with financial outlay of USD 7.1 million
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 and mechanical sciences
In FY10, the institute filed the third highest number of patent applications amongst all the institutes and universities in
India
Innovation and Patents MARCH2013
Key players in R&D - Institutes and
universities* (1/2)
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Source: Organisational websites, Aranca Research
*This list is indicative
Innovation and Patents MARCH2013
OrganisationBusiness description
The Energy and Resources Institute (TERI)
TERI is engaged in developing solutions to global problems in fields of energy, environment and sustainable
development
The important research areas include biotechnology, earth science and climate change, technology development, socialtransformation, and modelling and economic analysis
Institute of Life Sciences (ILS)
ILS undertakes basic and translational research in frontier areas of life sciences
The institutes research interests are in the areas of infectious disease biology, gene function and regulation, and
translation research and technology development
Indian Institute for Advanced Studies (IIAS)
IIAS is a residential centre for advanced research in humanities, social sciences and natural sciences
Its major research areas include social, political and economic philosophy; comparative studies in philosophy and
religion; education, culture and arts; natural and life sciences; and national integration and nation building
Key players in R&D - Institutes and
universities* (2/2)
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Source: Organisational websites, Aranca Research
*This list is indicative
Innovation and Patents MARCH2013
OrganisationBusiness 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, and
value-added (nature care) tea The company filed 57 patent applications and was one of the top Indian patentees in FY11
Tata Steel Limited
Tata Steel undertakes research in areas such as raw materials and coke, iron and ferro alloys, steel making, coated
products, materials characterisation and joining, materials modelling and product design, and refractory technology
The company filed 36 patent applications in FY11 and was one of the top Indian patentees in FY11
Cipla Limited
Ciplas R&D division focuses on new product development and new drug delivery systems across a range of therapies
In FY10, the companys total R&D spending was about 5 per cent of the total turnover; during that year the company
filed 21 patent applications and was one of the top Indian applicants for patents in the pharmaceutical industry
Key players in R&D - Private sector
companies*
d
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Innovation insights from rural India
Source: Rediff Business, Aranca Research
Innovation and Patents
Reaper windrower
machine
For easy and timely
harvesting of
soyabean crop
Prevents shattering of
soyabean pods due to
non-availability of
labourers for
harvesting the crop in
time
Hand operated water
lifting pump
For convenient water-
lifting at a good
discharge rate and
low cost The pump was built
in response to a
dearth of available
pumps that could be
afforded by small
farmers
Bamboo lathe machine
For stripping off the
outer covering of
bamboo to develop a
smooth surface formaking interior
decoration and utility
items
Reduces the time and
labour required to do
the job manually
Pedal operated
washing machine
For washing clothes
while exercising on a
pedal machine
An affordable and
convenient way of
washing clothes in
rural India which
experiences frequent
power shortages
MARCH
2013
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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
Innovation and Patents
Agni-V missile
Successfully test fired
in April 2012
India joined an elite
group of nations having
ICBM technology
Indigenously developed
by DRDO
To be inducted by
2014-15
INS Vikrant
India Indigenous
Aircraft Carrier (IAC)
Total displacement of
over 40,000 tonnes
Being built by Cochin
Shipyard Limited
To be inducted by
2014-16
Arihant Class
Submarines
With its launch in
2009, India joined an
elite group of nations
having nuclear-
powered submarines
Developed by HSL
To be commissioned by
2012-13
Tejas
Second supersonic
aircraft to be developed
indigenously by
Hindustan Aeronautics
Limited (HAL)
To be inducted by 2014
MARCH
2013
Innovation has been a cornerstone of the
countrys defence sector
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Innovation and Patents
India is one of the most preferred location for engineering offshoring
Companies across sectors (such as IT, consumer electronics, personal devices,
medical electronics, telecom and automobiles) are now offshoring complete product
responsibility
Increased focus on R&D by Indian IT firms has resulted in rising number of patents
filed by Indian IT firms
The share of IT firms in total patents filed in India went up from 4 per cent in
FY05 to 13 per cent in FY08
Notes: R&D - Research and Development , IT - Information TechnologySource: Financial Express, Value Notes,
Aranca Research
1.3
13.1
0
2
4
6
8
10
12
14
2003 2011
USD billion
R&D outsourcing in India
MARCH
2013
India is also garnering the benefits of R&D
outsourcing
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Contents
Advantage India
Market overview and trends
Growth drivers
Success stories: Ranbaxy, Infosys
Opportunities
Useful information
For updated information, please visit www.ibef.org
Innovation and Patents MARCH2013
I i d P MARCH
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2222For updated information, please visit www.ibef.org GROWTH DRIVERS
Strong
government
support
Evolving consumer
lifestyles
Liberalisation andincreasing
competition
Proximity to futuregrowth markets
Policy support Increasing investments
Rising FDI
Providing support toglobal projects from
India
Inviting Resulting in
Growing demand
Sources:Battelle, Electronics for You, Organisational websites, Aranca 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
PPP in R&D
Strengtheningeducational
infrastructure
Establishment of
CoEs, NMITLIinitiative
Innovation and Patents
Amendments to thePatents Act & Setting
up of NIC
Increasing corporateR&D investments
MARCH
2013
Strong demand and policy support driving
investments
I i d P MARCH
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PPP in R&D
Exchange of scientific knowledge between research centres, national laboratories, institutes of
higher learning and the industry
Setting up of Centres of Excellence (CoEs) in various areas
New Millennium Indian Technology Leadership Initiative (NMITLI)
Funded Institutions and
Foreign universities
Increasing the number of Indian Institutes of Technology (IITs) to 16, establishing 3 new Indian
institute of Science Education and Research (IISER) and 30 central universities
Foreign universities permitted to enter the higher education system in India by establishing their
own campuses or joint ventures with existing universities
Tax incentives
Government offers 200 per cent deduction for capital and revenue expenditure incurred by
manufacturing companies with in-house R&D
Income tax exemption of 125 per cent to 175 per cent on donations made to universities,
colleges and other scientific associations
Patents Act
Amendments to the Patents Act, 1970 to make it TRIPS compliant
Increased incentives to domestic firms to conduct R&D Increased likelihood of technology transfer from developed nations
Source:Battelle, Electronics for You, Organisational websites, Aranca Research
Notes: PPP - Public Private Partnership
Innovation and Patents
GROWTH DRIVERS
National Innovation
Council (NIC)
In 2010, NIC was set up to implement strategies for inclusive innovation in India and prepare a
roadmap for innovation over 2010-20
Tasks of NIC include creating a framework to encourage innovation by central and state
governments, universities, R&D institutions and SMEs
MARCH
2013
Policy support aiding growth in the sector
I ti d P t t MARCH
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Source:India Electronic News, Moneycontrol, CNBC, Economic Times, Appliancemagazine.com,
Business Standard, The Hindu, company websites, Aranca Research
Note: R&D - Research and Development
Innovation and Patents
2009
Jun 09: LG Electronics
doubles its annual R&Dinvestment outlay to USD83
million
Oct 09: Tata DoCoMo setsup R&D centre for value-
added services (VAS) and
mobile applications
Oct 09: Hyundai sets upR&D centre at Hyderabad at
an investment of USD25million
2010
Jan 10: Huawei allocates
USD500 million investmentfor R&D centre in Bengaluru
May 10: Bridgewater opensCentre of Excellence in
Gurgaon for telecom software
R&D
Aug 10: Alstom earmarksUSD39 million to establish
R&D centre for power
products at the Infosyscampus
2011
Apr 11: Hitachi to invest
USD400 million to set upR&D centre in Bengaluru
May 11: ISRO announcessetting up of spacecraft R&D
centre on 530 acres land at
Chitradurga
Oct 11: Saab AB andMahindra Satyam open an
R&D center in Hyderabad for
conducting research inaerospace, defense and civil
security
2012
Mar 12: Aditya Birla Group
launches R&D centre at NaviMumbai, developed at a cost of about
USD52 million
Apr 12: Maruti Suzuki announces aninvestment of USD500 million to set
up an R&D facility at Rohtak
Jun 25: Chinese equipment makerHuawei will invest USD2 billion to
set up global R&D centre
Nov 23: General Electric will investUSD60 million to expand its R&D
facility; its is expected to develop 30
new products by 2015
GROWTH DRIVERS
MARCH
2013
Recent investments in R&D by key players
I ti d P t t MARCH
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Public sector investments in R&D
Innovation and Patents
The government has set up
CoEs based on the PPP
model for technology
development and transfer,
scientific research, humanresource development and
economic outreach
CoEs have been set up in
the areas of telecom,
wireless technology, bio-
informatics, lasers and
optoelectronic devices and
nano-electronics
The programme identifies
areas for development
based on national
consultation and invites
best partners frominstitutions, academia and
private sector to play a role
in the process
NMITLI has so far
initiated 60 largely
networked projects in
diverse areas involving 85
industry partners and 280R&D groups from different
institutions with investment
outlay of USD114 million
The government proposes
to establish 8 new IITs, 3
IISERs, 10 NITs and 20
IIITs by 2012
These institutes together
account for over 80 per
cent of the total PhDs in
engineering in India
The institutes are also
amongst the top Indian
applicants for patents from
the institutes and
universities category
Government to set up 30
new central universities by
2012
New universities in 16uncovered states
The remaining 14 new
Central Universities will be
set up as world class
centres of excellence at
different locations
Foreign universitiespermitted to enter the
higher education system in
India by establishing their
own campuses or joint
ventures with existing
universities
Central and foreign universities
Source:Electronics for You, CSIR, Aranca Research, Business Standard
Notes: CoE - Centre of Excellence, NMITLI - New Millennium Indian Technology Leadership Initiative
GROWTH DRIVERS
MARCH
2013
Centrally funded institutionsNMITLICentres of Excellence (CoEs)
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Contents
Advantage India
Market overview and trends
Growth drivers
Success stories: Ranbaxy, Infosys
Opportunities
Useful information
For updated information, please visit www.ibef.org
Innovation and Patents MARCH2013
I ti d P t t MARCH
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2727For updated information, please visit www.ibef.org SUCCESS STORIES: RANBAXY, INFOSYS
Innovation and Patents
Ranbaxy filed the highest number of patent applications in the Indian
pharmaceutical sector, followed by Wockhardt and Cipla
Specific R&D focus includes technology development for APIs, platform technologies
and products in the area of novel drug delivery systems, and discovery and
development of new drug molecules
Indian pharmaceutical patent applications (FY10)
Source: Office of the Controller General of Patents,
Designs and Trademarks 2009-10 Annual Report,
Company Annual Reports, Aranca Research
37
33
21
11
10
0 10 20 30 40
Ranbaxy
Wockhardt
Cipla
Hetero Research
Concept Medical Research
Notes: API - Active Pharmaceutical Ingredient
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Ranbaxy: Leading innovator in
pharmaceuticals (1/2)
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2828For updated information, please visit www.ibef.org SUCCESS STORIES: RANBAXY, INFOSYS
Innovation and Patents
During FY06-11, the companys sales grew at a CAGR of 13 percent to USD1.6
billion from USD845.6 million
Increase in the companys R&D expenditure during the period (at a CAGR of 4 per
cent to USD98 million from USD 80.5 billion) has been a major driving force
behind this growth
Sales
Source: Company Annual Reports, Aranca Research
845.6 871.8 897.6941.9
1,094.1
1,557.5
FY06 FY07 FY08 FY09 FY10 FY11
USD million
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pharmaceuticals (2/2)
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2929For updated information, please visit www.ibef.org SUCCESS STORIES: RANBAXY, INFOSYS
Innovation and Patents
Ranked 15th among the worlds most innovative companies on the Forbes 2011 list
Infosys filed the highest number of patent applications in the Indian IT sector,
followed by LG Soft India and C-DAC
Research activity for different areas is allocated amongst dedicated labs such asSoftware Engineering lab, Convergence lab, Security and Privacy lab, Distributed
Computing lab and E-Com lab
Indian IT patent applications (FY10)
Source:: Office of the Controller General of Patents,
Designs and Trademarks 2009-10 annual report, company
annual reports, Aranca Research
23
7
6
6
6
0 5 10 15 20 25
Infosys
LG Soft India
C-DAC
Newgen
Samsung India
Notes: IT - Information Technology
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Infosys: Nurturing innovation in IT
(1/2)
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3030For updated information, please visit www.ibef.org SUCCESS STORIES: RANBAXY, INFOSYS
Innovation and Patents
During FY06-12, the companys net profit increased at a CAGR of 23 percent to
USD1.7 billion from USD500 million; the trend was in line with growth in income
(CAGR of 23.2 per cent)
In H1FY13, revenues and net profit stood at USD3,549 million and USD847 million
respectively
Expenditure on R&D outpaced top line growth during the period; it posted a CAGR
of 36.5 per cent (to USD137.5 million)
Consequently, total expenditure on R&D during FY12 rose to 2.1 per cent of total
revenue
Income and net profit (USD million)
Source:: Company Annual Reports,
Aranca Research
0
400
800
1,200
1,600
2,000
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
FY06 FY07 FY08 FY09 FY10 FY11 FY12
Income Net Profit - right axis
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3131
Contents
Advantage India
Market overview and trends
Growth drivers
Success stories: Ranbaxy, Infosys
Opportunities
Useful information
For updated information, please visit www.ibef.org
MARCH
2013Innovation and Patents
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3232For updated information, please visit www.ibef.org OPPORTUNITIES
Opportunities
Source:ARAI, Business Standard, India Law Office, Aranca Research
Notes: IT - Information Technology, ARAI - Automotive Research Association of India, NVH - Noise, Vibration and Harshness
Innovation and Patents
Contract research is a fast growing segment in the Indian healthcare industry
Indian pharmaceuticals market is anticipated to expand at a CAGR of 17.2 per cent over 2011-2016 to touch
USD27.3 billion
Indias huge population places it among the worlds largest markets for vaccines and drugs
Pharma andHealthcare
India is increasingly seen as a product development destination
Companies are now offshoring complete product responsibility including complex services like product
management
InformationTechnology (IT)
Protein and antibody production, and fabrication of diagnostic protein chips are promising areas for investment
Stem cell research, cell engineering and cell-based therapeutics are other areas, wherein India will cash in its
expertise
Biotechnology
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 and electronics
India is the sixth largest auto market globally and is poised to become the third largest by 2020
Automobiles
India has the potential to become a major producer of transgenic rice and several genetically modified (GM) or
engineered vegetables
Hybrid seeds, including GM seeds, represent new business opportunities in India based on yield improvement
Agriculture
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3333
Contents
Advantage India
Market overview and trends
Growth drivers
Success stories: Ranbaxy, Infosys
Opportunities
Useful information
For updated information, please visit www.ibef.org
Innovation and Patents MARCH2013
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3434For updated information, please visit www.ibef.org USEFUL INFORMATION
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: [email protected]
Website: www.araiindia.com
Indian Society for Clinical Research (ISCR)c/o Pfizer Centre, 5, Patel Estate, S.V.Road, Jogeshwari(West), Mumbai - 400
102
Tel: 91-022 26774140, 66932028
E-mail: [email protected]
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 : [email protected]
Website: www.sitra.org.in
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3535For updated information, please visit www.ibef.org
Glossary (1/2)
API: Active Pharmaceutical Ingredient ARAI: Automotive Research Association of India CAGR: Compound Annual Growth Rate CoE: Centre 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
USEFUL INFORMATION
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3636For updated information, please visit www.ibef.org
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 Conversion rate used: USD1= INR48 WTO: World Trade Organisation Wherever applicable, numbers have been rounded off to the nearest whole number
USEFUL INFORMATION
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