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Science” (Kuznetsova, 2013). The fourth part of the “Civil Code of Russia” (2006) 

is a complete codification of the legislation on intellectual property. Some specific 

questions are regulated by the “Tax Code of Russia”.

The practical implementation of federal laws is usually based on government 

regulations.

Thus, these instruments regulate the integration of science, education 

and business; R&D organisations’ performance evaluation; the functioning of 

public and national research centres and national research universities; the use and 

protection of intellectual property rights; support for young scientists; international 

scientific and technical cooperation; payments for increases in researchers’ salaries; 

the development of start-ups; and other activities.

1.1.3 India

India can be considered a pioneer in the development of S&T policies, in the 

context of emerging countries. Even before India’s independence, an alliance 

between elite scientists and politicians such as Jawaharlal Nehru struggled against 

colonial policies. What resulted was a view that considered the development 

of indigenous knowledge and modern S&T institutions highly important. 

The historical Science Policy Resolution of 1958 acknowledged the heavy price 

for importing S&T in the process of industrialisation. This aversion to import 

dependence led to import-substitution policies, which were gradually reversed from 

the 1990s onwards (Joseph and Abrol, 2009; Krishna, 2013).

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 Recognising the 

importance of innovation as an engine for growth, the Government of India has 

declared 2010-2020 the Decade of Innovation (Planning Commission, 2013).

The country has made significant achievements in the spheres of atomic 

energy, space technology, ICT software, biotechnology and pharmaceuticals. 

On the other hand, promotional efforts to increase the corporate sector’s participation 

in the development of indigenous technology had seen limited success, and 

private-sector R&D intensity is low. There is a heavy concentration of R&D in 

seven industries: pharmaceuticals, transport, chemicals, electrical and electronics, 

defence, information technology and telecommunications. Employment in 

agriculture is still very high, and the share of agriculture as a proportion of GDP is 

also high compared to international standards. The share of manufacturing is lower 

than in most other late-industrialising nations at similar stages of development.

43. Public-sector enterprises were created for the production of inputs such as steel, oil and gas, petrochemicals, power, 

fertilisers and the equipment and machines needed for the production of capital goods. Atomic energy, space technology, 

clean coal, glass and ceramics, processed foods, pharmaceuticals and agro-chemicals were emphasised. The Science 

Policy Resolution recognised the importance of trained and educated human resources. There were S&T statements 

in 1958, 1986 and 2003. India’s first Science and Technology Plan covered the period 1974-1979. India’s policy on 

foreign technology and capital was relatively liberal until the mid-1960s. Then, due to balance-of-payments difficulties, 

the policy became more restrictive (“nationalist technological policies”). The New Industrial Policy (1991) marked a 

major departure from the earlier policies (Joseph and Abrol, 2009).

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Main actors in the National Innovation System

Parliament

The Indian Parliament consists of the upper house (

Rajya Sabha

) and the lower 

house (

Lok Sabha

). It has both standing committees and ad hoc committees. 

Much of the discussions on STI policies are first examined by the standing 

committees and then ratified by the Parliament (Joseph and Abrol, 2009).

Government and intermediary agencies

The Prime Minister’s Office, in consultation with the Planning Commission 

and other relevant ministries and departments, formulates, initiates and 

implements various STI policies. The Principal Scientific Advisor, the Science 

Advisory Council and the National Knowledge Commission have an advisory 

role (ibid.). The National Innovation Council was created to formulate a 

roadmap for innovation for 2010-2020.

The Ministry of Science and Technology

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 has three departments: Biotechnology, 

Science and Technology (DST) and Scientific and Industrial Research. 

The DST has 10 attached and subordinate offices, 5 divisions/units/wings, 

3 public-sector undertakings and joint ventures and 5 statutory bodies, commissions 

and councils.

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The Council for Scientific and Industrial Research (CSIR), the Department of 

Atomic Energy, the Defence Research and Developmental Organisation (DRDO), 

the Indian Council for Agricultural Research and the Indian Council for Medical  

Research (ICMR) were created from 1948 to the 1960s. The Departments of 

Space, Electronics, Environment, Biotechnology and Ocean Development were 

created from the 1970s to the 1990s (ibid.). 

According to the 12th Five-Year Plan, the involvement of states in R&D 

is low and connections with institutions such as the CSIR, ICMR and DRDO 

should be supported (Planning Commission, 2013).

Academia and higher education system

In 2011-12 there were 445 universities, 129 institutions deemed to be universities 

and 35,539 colleges, with a total of more than 20 million students.

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 In recent 

decades there has been a proliferation of lower-quality HEIs that operate based 

on student fees and service sales (Krishna, 2013). R&D in HEIs is a weak link in 

India’s NIS (Joseph and Abrol, 2009).

44. The Ministry of Scientific Research and Cultural Affairs was originally created in 1948.
45. See: <http://dst.gov.in>. 
46. See: <http://goo.gl/T0AieM>. 

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As mentioned above, scientists had a great influence in the policies that led to 

the modern Indian NIS. They still participate actively in policy discussions such as 

those related to the Five-Year Plans. Some of the main scientific societies are the 

Indian National Academy of Sciences, the Indian Science Congress Association, the 

National Academy of Sciences and the Indian National Academy of Engineering.

Research institutes

In 2011 there were 4533 R&D institutions in India. Half belonged to the private 

sector, 20 per cent to state sector, 14 per cent to the central sector, 12 per cent to 

universities and 4 per cent to the public sector (Department of Science & Technology, 

2013). About 260 global transnational companies operate R&D laboratories in 

India (Joseph & Abrol, 2009).

Enterprises, technoparks and special economic zones

The private sector was responsible for 28.9 per cent of national R&D expenditure, 

and public-sector industries for another 5.3 per cent, in the period 2009-2010 

(Department of Science & Technology, 2013).

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 Since the 2000s, business enterprises 

and associations such as the Federation of Indian Chambers of Commerce and 

Industry, the Confederation of Indian Industry and the National Association of 

Software and Service Companies increased their influence in discussions about 

STI policies (Joseph and Abrol, 2009). The gradual opening of the market allowed 

the upsurge of private Indian conglomerates. 

India has seven special economic zones.

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 Software technology parks in 

Bangalore, Hyderabad, Pune, Chennai, Delhi and Gurgoan were responsible for 

70 per cent of software exports in 2008 (ibid.). The India STEPs and Business 

Incubators’ Association was founded in 2004.

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Regulatory and policy framework of the national innovation system

Main recent plans/programmes

Since independence the country has adopted a series of Five-Year Plans, historically 

inspired by the former Soviet Union model. The different approaches to indigenous 

versus foreign technology are reflected in the different versions of the plan. 

Currently, the process of elaboration of the Five-Year Plan is very transparent. 

For each subject – for example, S&T – a Steering Committee is nominated, as 

well as several other sub-groups (for example, S&T for vulnerable members of 

society, mega science and global alliances, among others). Each group prepares a 

47. The public sector (55.4 per cent), State sector (7.3 per cent), higher education sector (4.1 per cent).
48. See: <http://goo.gl/97Z6V9>. 
49. See: <http://goo.gl/jJmbpt>. 

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report that is made available on the DST and Planning Commission websites.

50

For an overview of the national targets for the 12th Five-Year Plan, see table 5. 

The plan also establishes specific targets for different departments.

A report on technology forecasting, 

India 2020 – Vision for the New Millennium

, 

developed by the Technology Information Forecasting and Assessment Council of 

the DST, had a significant impact on India’s S&T policies from 2002 to 2006 (ibid.). 

The S&T Policy Statement 2003

 emphasised the importance of innovation. In 2013 

the government announced a new Science, Technology and Innovation Policy, which 

deepens the focus on innovation.

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 The DST prioritises seven programme areas,

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the Department of Biotechnology has 14 programmes,

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 and the Department of 

Scientific and Industrial Research has 15 programmes.

54,

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Financial and tax mechanisms

There are three types of financial mechanisms to finance innovations: research 

grants, tax incentives and venture capital. Venture capital is almost entirely provided 

by the private sector. Most of the research grants are awarded to either public-

sector enterprises or individual researchers. Three of the main grants programmes 

are those from the Technology Development Board, the Techno-entrepreneurs 

50. The S&T chapter is available at: <http://goo.gl/cLxCnU>. 
51. The policy states the following aspirations: promoting the spread of scientific knowledge among all sections of 

society; enhancing skills for the application of science among young people from all social strata; making careers in 

science, research and innovation attractive enough for talented and bright minds; establishing world-class infrastructure 

for R&D to achieve global leadership in some selected frontier areas of science; positioning India among the top five 

global scientific powers by 2020; linking contributions of the science, research and innovation system with the inclusive 

economic growth agenda and combining priorities of excellence and relevance; creating an environment for enhanced 

private-sector participation in R&D; enabling the conversion of R&D outputs into societal and commercial applications 

by replicating hitherto successful models as well as establishing new public-private partnership structures; seeding 

S&T-based high-risk innovations through new mechanisms; fostering resource-optimised, cost-effective innovations 

across size and technology domains; triggering changes in the mindset and value systems to recognise, respect and 

reward performances which create wealth from S&T-derived knowledge; and creating a robust NIS.
52. Scientific and engineering research, technology development, S&T socio-economic development, international S&T 

cooperation, women scientists programme, cognitive science research initiative, technology missions: solar and water. 

Each of these programme areas lists a number of initiatives. See: <http://goo.gl/UXHZeD>. 
53. Human resources development, international collaboration, biotech park, infrastructure facilities, R&D, the Small 

Business Innovation Research Initiative (SBIRI), bioinformatics, the National Biosource Board, biofuel and bioenergy, 

Centres of Excellence and Programme Support in Areas of Biotechnology, social development, National Jai Vigyan S&T 

Mission, and a patent-facilitating cell. See: <http://dbtindia.nic.in/index.asp>. 
54. Building industrial R&D promotion programme, industrial R&D promotion programme, R&D by industry, scientific 

and industrial research organisations, public-funded research institutions, fiscal incentives, the Asia and Pacific Centre 

for Transfer of Technology, information technology and e-governance, common research and technology development 

hubs, patent acquisition and collaborative research and technology development, promotion of innovations in individuals, 

start-ups and SMEs, access to knowledge for technological development and dissemination, technological development 

and utilisation programme for women, national and international conferences and exhibitions, and industrial 

technology-related studies. See: <http://goo.gl/08KqsI>. 
55. There are a number of other initiatives that can be mentioned: the Technology Development and Demonstration 

Programme was designed to adapt technology by means of research, design and development developed by industry 

and overseen by experts from laboratories; the Technology Absorption and Adaptation Scheme, National Register on 

Foreign Collaboration, S&T for Weaker Sections, S&T for Rural Development, S&T Entrepreneurship Park, and New 

Millennium India Technology Leadership. For a list of sector-based and overarching policies, see Joseph & Abrol (2009).

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Promotion Programme and the New Millennium India Technology Leadership 

Initiative (Mani, 2014). 

The history of the venture capital industry in India goes back to the late 

1980s. India is among the top recipients in Asia of venture capital and private 

equity funds, but the seed funding stage is severely constricted (Planning 

Commission, 2013). As early as 1974, the government started to give tax 

benefits for R&D (Krishna, 2013).

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 For an analysis of a variety of tax incentives 

for domestic R&D, see Mani (2014).

Relevant legislation 

The 1970 Patent Act was one of the most important initiatives by the State 

to foster indigenous development of technology. It abolished product patents 

on food, chemicals and drugs, keeping only patents for processes. It reduced 

the duration of patents from 14 to 5 years from the date of grant of the patent 

or 7 years from the date of filing, whichever was earlier. It obliged the patent 

owner to produce the good in India; otherwise, the patent could be repealed. 

It also stipulated a limit of payment of royalties of 4 per cent of the wholesale 

net price (Souza, 2012). In 2005, by the end of the 10-year transition period 

allowed by World Trade Organization rules, India amended the Patent Act and 

is now compliant with the Agreement on Trade-Related Aspects of Intellectual 

Property (TRIPS).

1.1.4 China

China’s industrialisation was characterised by the intensive use of natural resources 

such as coal, steel and fresh water. After 1978, technology policy was adopted to 

encourage foreign companies to transfer technology to local companies. The result 

was the creation of joint ventures between foreign and Chinese companies. Foreign 

Direct Investment (FDI) played an important role in China’s development, but 

there is debate about the spill-overs for innovation (Liu and Liu, 2009). China is 

succeeding in creating a few domestic companies competitive in high-tech areas, 

including ZTE, Huawei, Xiaomi and Lenovo.

Since the 1980s, the policy has started to shift towards a major role of 

firms in the NIS, and demand-side policies have begun to play a greater role. 

Mega projects include large aircraft, next-generation internet and communications. 

In the last few years, there has been strong government support for the theme 

of innovation. 

56. INR10,000 cr fund announced in the last Union Budget.