1. Global Innovation Landscape and India’s Rise
Global patent applications have climbed steadily, doubling from ~1 million in 1995 to 3.55 million in 2023, reflecting an unprecedented surge in worldwide innovation. Today’s innovation ecosystem is truly global, with
record-high patent filings signaling intense inventive activity across continents. In 2023 alone, innovators worldwide filed 3.55 million patent applications, a 2.7% increase over the prior year and marking the fourth consecutive year of growth. Much of this boom is driven by emerging economies: China, South Korea, the U.S., Japan and India all saw substantial jumps in filings. Notably, India’s patent activity has risen meteorically – India recorded a +15.7% growth in patent applications in 2023, its fifth straight year of double-digit gains. This rapid ascent has vaulted India to 6th globally in annual patent filings with 64,480 applications in 2023, behind only the likes of China, the U.S., Japan and South Korea. Such progress underscores India’s emergence as a major innovation hub on the world stage.
India’s growing patent prowess is accompanied by a shift in who drives its innovation. For the first time, over half (55.2%) of India’s patent applications in 2023 came from domestic innovators, indicating a strengthening local R&D base. Indian companies, universities and research institutes are increasingly generating home-grown intellectual property, spurred by government efforts to foster an innovation- friendly environment. Initiatives like the National IPR Policy (2016) and “Atmanirbhar Bharat” campaign have raised IP awareness and support for inventors. The fact that residents now lead patent filings is a milestone in India’s innovation journey. It reflects a maturing ecosystem where Indian innovators are not just participating in global innovation but actively shaping it. As India’s contribution to global IP grows, the country is poised to leverage its inventive talent in addressing both domestic needs and worldwide challenges. The global landscape is watching India’s rise, as the nation transitions from a back-office technology role to a front-runner in research and innovation.
2. Strengthening Education and Human Capital for Innovation
A robust innovation ecosystem is built on the bedrock of human capital – educated, skilled, and creative individuals. India’s education system has been expanding rapidly to supply the talent needed for a knowledge economy. The country today boasts over 16,000 colleges, ~600 universities and 2,000+ R&D institutes, producing a pipeline of scientists, engineers and scholars. These numbers have grown significantly since independence, reflecting an ongoing commitment to build capacity in higher education. Recent years have seen new Indian Institutes of Technology (IITs), Indian Institutes of Science Education and Research (IISERs), and other centers of excellence established across the nation to decentralize quality education. Initiatives such as the Institutions of Eminence scheme encourage select universities to strive for world-class status, fostering global competitiveness in research output.
Equally important is reorienting education toward creativity, problem-solving and interdisciplinary learning. The National Education Policy (NEP) 2020 introduced sweeping reforms to break academic silos and encourage innovation from early stages. Schools are now embracing experiential and project-based learning. Programs like the Atal Tinkering Labs in thousands of schools ignite young students’ interest in science and technology by providing spaces to tinker, build and innovate. By catching students early and making STEM learning fun and hands-on, these labs aim to instill a maker mindset. At the university level, hackathons, innovation contests, and startup incubation programs have become mainstream. For instance, the Atal Innovation Mission has set up numerous Atal Incubation Centers at universities to nurture student entrepreneurs. The focus is on producing not just job seekers but job creators – graduates equipped to launch startups or pursue cutting-edge research. Strengthening foundational education while infusing it with creativity ensures India’s vast youth population becomes an asset for innovation, fueling the ecosystem with fresh ideas and skills for decades to come.
3. Boosting Research & Development: Infrastructure and Investment
No innovation ecosystem can flourish without strong investment in research and development (R&D). India has doubled down on funding R&D over the last decade, doubling its expenditure in absolute terms, yet challenges remain in catching up with global benchmarks. India’s Gross Expenditure on R&D (GERD) has hovered around 0.6–0.7% of GDP in recent years, which is significantly lower than nations like China (2.4% of GDP), the USA (3.5%), or Israel (5.4%). This gap highlights the need for a quantum leap in research spending to drive breakthrough innovation. A major reason for the shortfall has been relatively low private sector R&D investment – Indian industry historically under-invested in research compared to global peers. Recognizing this, the government has launched efforts to incentivize corporate R&D, such as weighted tax deductions on research expenses and public–private funding schemes.
Importantly, a transformative initiative – the National Research Foundation (NRF) – is being operationalized to channel more resources into research across academia and industry. Backed by a massive ?50,000 crore (≈ $6 billion) commitment over 5 years, the NRF will seed, grow and promote research in priority areas. Notably, only ~28% of this funding is to come from government, with the rest from industry and philanthropy, signaling a new era of collaborative R&D financing. This model aims to foster a strong research culture by bringing together academia, industry, and government agencies to solve national problems. Alongside funding, India has built physical infrastructure – from advanced laboratories and centers of excellence in areas like biotechnology, nanotechnology and space science, to high- performance computing facilities and research parks co-located with universities. The country’s scientific workforce is also strengthening: policies encourage recruiting top Indian talent from abroad (the “brain gain” strategy) and retaining skilled researchers through better career prospects. As a result of these efforts, India’s scientific publication output and patent grants have surged in recent years, indicating greater R&D productivity. By investing in both the “hardware” (labs, funding) and “software” (human capital, collaboration networks) of research, India is laying the groundwork for an innovation take-off. The coming years will test how effectively these investments translate into world-class discoveries and technologies.
4. Fostering Entrepreneurship and Startups
A vibrant startup culture is the hallmark of a thriving innovation ecosystem. In the past decade, India’s startup scene has exploded, transforming the nation into the world’s 3rd largest startup ecosystem with over 1.59 lakh (159,000) startups officially recognized as of early 2025. This is a remarkable leap from just a few hundred startups in 2016 when the government’s flagship Startup India initiative was launched. The movement has unleashed entrepreneurial energy across the country – while major hubs like Bengaluru, Delhi-NCR, Mumbai, and Hyderabad lead the charge, smaller cities and towns are also contributing thousands of new ventures. Home-grown startups are tackling local challenges in fintech, edtech, health-tech, agritech and more, and many are gaining global recognition. Notably, India is now home to over 100 unicorns (startups valued >$1B), a number only surpassed by the US and China. Companies like Zomato, Ola, Flipkart, Paytm, Byju’s and others have demonstrated that Indian startups can achieve scale and compete internationally, shifting the mindset from job-seeking to job-creating among the youth.
Crucial to this success has been an enabling environment crafted by targeted policy support. The Startup India program introduced seed funding schemes, a ?10,000 crore Fund of Funds for Startups (FFS) for venture financing, and incubation centers to nurture early-stage ideas. Red tape has been slashed via simplified compliance, single-window clearances, and tax exemptions for the first 3 years of a startup’s operations. These measures have dramatically improved the ease of doing business for entrepreneurs. Additionally, a culture of mentorship and networking has grown, with events like startup conclaves, pitch competitions, and angel investor forums becoming commonplace. Over the nine years of Startup India, the results are evident: recognized startups have created over 1.6 million direct jobs as of late 2024, making them a significant engine of employment and economic growth. Perhaps most encouraging is the increasing diversity in the startup ecosystem – over 73,000 startups include at least one woman director, pointing to rising women’s entrepreneurship in India. By fostering a generation of risk-takers and innovators, India’s startup boom is not only contributing to GDP and jobs, but also injecting fresh ideas and technologies into traditional industries. In the coming years, these agile new firms will play a pivotal role in revolutionizing sectors from finance to farming, and in taking Indian innovations to the global market.
5. Policy Reforms and Government Initiatives
Public policy plays a pivotal role in orchestrating the innovation ecosystem – setting direction, removing bottlenecks, and providing support where the market alone may not suffice. Over the past decade, India has instituted major policy reforms to promote innovation, R&D, and high-tech entrepreneurship. A cornerstone is the National Intellectual Property Rights (IPR) Policy 2016, which overhauled the IP regime to make it more researcher- and industry-friendly. Measures under this policy have streamlined patent application processes, reduced fees for startups and academics, and strengthened IP enforcement. These efforts have borne fruit, with patent grants in India rising sharply (up 149% in 2023) as more innovators secure their IP. The government has also aggressively pursued digitization and e- governance, reducing procedural delays. For example, online portals for incorporating a startup, filing patents, or accessing government grants have cut down red tape.
Several mission-mode initiatives have been launched to target specific domains. The Make in India campaign (launched 2014) aims to turn India into a manufacturing and innovation hub by incentivizing domestic and foreign companies to design, develop, and make products in India. It set an ambitious goal to raise manufacturing’s share of GDP to 25%. In tandem, the Digital India initiative has expanded broadband connectivity, digital literacy, and e-services, creating a base of 800 million+ internet users that innovators can tap into for digital solutions. To ensure financing doesn’t constrain innovation, schemes like Innovative India (Indiacorps) and credit guarantee programs for startups provide vital risk capital and loans. The government is also using Grand Challenges in areas like smart cities, agritech, and clean energy to crowdsource innovative solutions from startups and the scientific community, often providing grants or pilot opportunities to winners. Importantly, policy has focused on inclusivity – bringing marginalized groups and regions into the innovation fold. There are incentives for startups founded in northeast India, for women-led enterprises, and for innovations benefiting rural populations. By aligning policy tools – fiscal incentives, regulatory ease, infrastructure investments, and challenges/awards – towards nurturing innovation, the Indian government is actively sculpting an ecosystem where creativity and enterprise can flourish. The policy landscape today strongly signals that innovation is a national priority, paving the way for the next leap in India’s development journey.
6. Industry–Academia Collaboration and Global Partnerships
Innovation thrives at the intersection of different spheres – notably where academia, industry, and global networks meet. India is actively forging stronger linkages between research institutions and industry, recognizing that collaboration is key to translating ideas into impact. Programs like Uchhatar Avishkar Yojana (UAY) fund academia-industry joint projects to solve real industrial problems. Dozens of Corporate- backed research chairs and labs have been established at IITs and leading universities, sponsored by companies in IT, automotive, pharma, etc., to work on domain-specific innovations (for example, an AI research center sponsored by IBM or an electric vehicles lab by Tata Motors). These partnerships expose students and professors to market needs, while giving industry early access to cutting-edge research – a win-win that shortens the lab-to-market cycle. Moreover, the government’s policy of allowing up to 100% FDI in R&D and facilitating industry-funded university research has attracted multinational corporations to set up R&D centers in India. Today, virtually every global tech giant (Google, Microsoft, Bosch, Samsung, etc.) operates large R&D facilities in India, often collaborating with local universities and startups. This not only brings in investment but also global best practices and mentorship for Indian researchers.
On the international front, India has significantly expanded its S&T diplomatic engagements, understanding that innovation has no borders. The country now has bilateral science and technology cooperation agreements with 90+ countries, enabling joint research projects, exchange of scientists, and access to advanced facilities abroad. Active collaborations span from traditional partners like the US, UK, Germany, France, Japan and Israel to newer partners in ASEAN, Africa and Latin America. Multilateral initiatives – such as participation in EU’s Horizon Europe research program, or joint R&D funds under groupings like BRICS and Quad – provide Indian innovators opportunities to work on global challenges alongside international teams. One concrete example is the India–Israel Industrial R&D fund, which supports companies from both nations to co-develop technologies, leveraging Israel’s strength in defense and agri-tech with India’s scale. India is also a key player in global science projects like the Large Hadron Collider, ITER fusion project, and Square Kilometre Array, which not only advance science but also expose Indian scientists to frontier innovations. These global and industry linkages are gradually breaking the silos – academia is more tuned to industry needs, industry is investing in long-term research, and Indian innovators are plugged into global knowledge networks. The result is an ecosystem that is more collaborative, outward-looking, and primed to accelerate innovation through collective effort.
7. Innovation Timeline: Evolution of India’s STI Ecosystem
Major milestones in India’s Science, Technology & Innovation (STI) policy since 1947, as illustrated in this timeline of national STI policies. India’s journey from a nascent post-colonial economy in 1947 to a rising innovation powerhouse today has been guided by a series of visionary policies and milestones. In the early years of independence, Prime Minister Nehru laid the foundation with the Scientific Policy Resolution (SPR) of 1958, which for the first time enshrined scientific research and “scientific temper” as key to nation-building. This was the era of building basic institutions – laboratories like CSIR labs, IITs and India’s Atomic Energy program took shape under this policy emphasis. Fast forward to 1983, as India matured technologically, the Technology Policy Statement of 1983 was adopted, shifting focus to technological self-reliance. This policy came at a time when India was gearing to indigenize industries from electronics to pharmaceuticals, and it spurred indigenous innovations (for example, the development of PARAM supercomputer and generics pharma industry owe some credit to this era).
The turn of the millennium saw India globalizing and the Science and Technology Policy 2003 was launched with an aim to increase investment in R&D and bring in cutting-edge science for economic development. Under this policy, R&D spending as a percentage of GDP was targeted to increase (though it remains a work in progress), and new sectors like biotechnology and nanotechnology received focused attention through dedicated missions. A decade later, the Science, Technology & Innovation Policy (STIP) 2013 explicitly put innovation at the center, highlighting the need to translate scientific outcomes into products and social good. This policy catalyzed support for startups, incubators, and collaboration platforms. Beyond these formal policies, the timeline of Indian innovation is dotted with iconic achievements: the green revolution in agriculture (1960s-70s) showing successful innovation in farming, the launch of ISRO and India’s first satellites (1970s) establishing prowess in space technology, the explosive growth of the IT services industry (1990s-2000s) placing India on the global technology map, and more recently, feats like the Mars Orbiter Mission (2014) done on a shoestring budget, epitomizing frugal innovation. Each milestone built on the previous, creating layers of capability. As the infographic timeline illustrates, India’s innovation ecosystem has been continually shaped by these waves of policy and achievement. Understanding this trajectory offers valuable lessons – how early investments in education and research yield dividends decades later, and how sustained policy support can turn a fledgling ecosystem into a formidable one. This historical perspective underscores that today’s innovation revolution stands on the shoulders of yesterday’s visionaries.
8. Embedding Design Thinking and Innovation Culture
The five key stages of the design thinking process – Empathize, Define, Ideate, Prototype, Test – form a human- centered cycle of innovation. Building a true innovation ecosystem goes beyond policies and funding – it requires a cultural shift towards creativity, critical thinking, and user-centric design in every domain. This is where design thinking has entered the lexicon in India’s education and corporate training. Design thinking is essentially a problem-solving approach that is “human-centered, iterative, and non-linear”, encouraging teams to deeply understand users’ needs, challenge assumptions, and continuously refine solutions. The five classic steps – Empathize, Define, Ideate, Prototype, Test – have been embraced as a framework in product development, service design, and even governance. For instance, many Indian startups attribute their success to relentless user empathy and quick prototyping: Fintech apps conduct extensive user interviews (empathize) to define pain points in digital payments, then ideate and prototype solutions (like simplified UIs) which are tested in small user groups before scaling. Even large corporations and banks in India now run internal “design sprints” to foster innovation in-house, guided by design thinking coaches.
In the education sector, design thinking principles are being woven into curricula to nurture creativity from a young age. Schools encourage project-based learning where students identify community problems and design solutions – effectively mini design-thinking projects. At universities, programs in entrepreneurship and innovation typically include design thinking courses or bootcamps. The impact is visible in student projects that are more user-focused and viable. Government, too, is not far behind: initiatives like the Smart India Hackathon have tens of thousands of students solving real problems for ministries, applying design thinking as they empathize with citizen issues and prototype digital solutions. The broader innovation culture is also being shaped by recognition and rewards – from national innovation awards to corporate intrapreneurship programs – that celebrate creative risk-taking and out-of-the-box solutions. As a result, failing fast and learning (a key tenet of design thinking) is gradually becoming acceptable in a society that traditionally feared failure. In summary, embedding design thinking is cultivating an agile mindset across India’s workforce and students. Over time, this cultural evolution may prove as critical as any policy or investment, because it equips millions of people to continuously drive innovation in whatever role they play. Innovation becomes not just an activity, but a mindset permeating academia, industry, and government alike, sustaining the ecosystem’s momentum for the long term.
9. Advancing High-Tech Sectors: The Semiconductor Ecosystem
India’s semiconductor market is projected to grow rapidly (17% CAGR) through 2027, reaching ~$64 billion by 2026, as shown above. The country is incentivizing domestic chip production to meet a greater share of its own demand. Of the many technology frontiers that India is targeting, building a domestic semiconductor ecosystem is among the most strategic and challenging. Semiconductors – the tiny chips powering everything from smartphones to supercomputers – are the backbone of a modern digital economy. Yet, India currently imports the vast majority of its chips, a vulnerability that became evident during recent global chip shortages. To change this, the Indian government has launched an ambitious drive to establish capabilities across the semiconductor value chain, from chip design to fabrication and assembly. A $10 billion incentive package announced in 2021 is at the heart of this effort. It includes hefty capital subsidies (up to 50%) for companies setting up chip fabrication plants (“fabs”) or display manufacturing units in India. Additionally, a Production-Linked Incentive (PLI) scheme offers 4-6% financial incentives on semiconductor goods manufactured in India, to make locally-made chips cost-competitive. Recognizing that design is as crucial as manufacturing, a Design-Linked Incentive (DLI) program allocates $1 billion to support 20 domestic semiconductor design startups with grants for EDA software, prototyping and even market deployment. These unprecedented incentives aim to jump-start an industry that requires huge capital and expertise.
The goals set are bold: by 2030, India hopes to see at least 10 new semiconductor fabs established on its soil and to be producing enough chips to meet 25% of global demand by 2035. To achieve this, India is actively courting top global chipmakers. Strategic partnerships are being forged – for example, talks with TSMC (Taiwan) to set up a $7 billion fab in India, potentially creating 10,000 jobs. Intel has committed $3 billion to expand its R&D center in Bengaluru to focus on advanced chip design. GlobalFoundries is exploring a $5 billion facility in partnership with Indian firms. Meanwhile, Samsung is investing $1.5 billion to expand its semiconductor R&D in Noida, concentrating on memory chips. These moves, alongside efforts to skill engineers in semiconductor technology, are slowly weaving together a nascent ecosystem. Already, India has strength in chip design – numerous global companies have design centers in India (employing an estimated 20% of the world’s chip designers). The challenge and next step is establishing manufacturing, which is now underway. Progress will take time given the complexity of fab tech, but the trajectory is set. By nurturing this ecosystem, India not only reduces import dependence but also positions itself in the critical electronics supply chain of the future. Success in semiconductors would be revolutionary, enabling self- reliance in technology and catalyzing innovations in electronics, AI, 5G, and beyond. The coming decade will be crucial as India’s policies and partnerships in this domain begin to bear silicon fruit.
10. Vision for the Next Century: Towards an Innovation Powerhouse
As India stands at the threshold of its centenary of independence (2047), it envisions nothing short of a transformation into a global innovation powerhouse. The collective endeavors in education, research, entrepreneurship, policy reform, and sectoral focus described above are all pieces of a larger puzzle – a future where India is prosperous, self-reliant, inclusive, and at the forefront of technology. In the words of Prime Minister Narendra Modi, “India’s vision for 2047 aims to transform the country into a hub of innovation, sustainable growth and inclusivity where every citizen enjoys a high quality of life while the nation’s progress remains people-centric and planet-friendly.” This vision underlines that innovation is not merely about economic gains, but about improving lives and doing so sustainably. By 2047, India aspires to be counted among the top nations in indices of innovation, education and human development. That means aiming for a Global Innovation Index rank within the top 25 (or higher from the current 39th), having multiple Indian universities in global top 100 lists, and hosting companies that are global trendsetters in technology.
Realizing this vision will require staying the course and continually adapting. The next century will bring new challenges – climate change, public health, cyber-security, to name a few – and India’s innovation ecosystem must evolve to tackle them. Encouragingly, the foundation is being laid: a generation of youth brimming with ideas and confidence, a government willing to invest and reform, an industry that’s increasingly global in outlook, and a diaspora eager to contribute expertise back home. The focus ahead is on deep-tech domains like artificial intelligence, renewable energy, biotechnology, space tech, quantum computing, and more – areas where India aims not just to participate but to lead. The coming years will likely see greater emphasis on public-private partnerships, higher R&D spending (the target of 2% of GDP on R&D is still on the horizon), and strengthening of intellectual property regimes to protect and monetize innovations. India will also continue to champion inclusive innovation – ensuring that advances benefit all sections of society, from smart agriculture for farmers to affordable healthcare devices for rural clinics, embodying the idea of “innovation for all”.
In conclusion, the road “from research to revolution” is an ongoing journey. The story of building India’s innovation ecosystem is one of patience, perseverance, and bold experiments. Each success – whether a village innovator’s frugal invention or a world-class product from an Indian startup – is a step toward that revolutionary future. As educators, technologists, policymakers, and professionals rally together, the vision of India in the next century is that of a nation that not only harnesses knowledge and innovation for its own progress, but also drives breakthroughs that benefit the world. The seeds are sown; the revolution is underway. With collective resolve, India’s tryst with innovation destiny will shape a brighter, more innovative century ahead.
About the Author
Dr. Anush Bekal is the Head of the Department of Electronics and Communication Engineering at Sahyadri College of Engineering & Management, Mangaluru, Karnataka, India. With a deep passion for advancing technology and nurturing future engineers, Dr. Bekal brings extensive academic and research experience to the field, contributing significantly to the growth of the department and the institution.