INNOVATION AND PATENTS
JANUARY 2016 For updated information, please visit www.ibef.org 1 INNOVATION AND PATENTS
Executive Summary………….…….………….3 Advantage India…………………….…………4 Market Overview and Trends……….………..6 Porter’s Five Forces Analysis …………...…27 Strategies Adopted…………………….…….30 Growth Drivers………………………………..33 Opportunities………………………………….41 Success Stories………………………………46 Useful Information……………………..…….52
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EXECUTIVE SUMMARY
• In 2014, India’s R&D expenditure is estimated to rise and reach USD44 million by 2014 from USD42 billion in 2013 Eighth-largest R&D • In 2013, India had the world’s eighth largest annual R&D investment, accounting for 2.7 investor per cent of global R&D expenditure • R&D spending in India is anticipated to grow from 0.9% to 2.4% of the country’s GDP from 2014 to 2034 respectively
Pharma sector driving • India’s pharmaceutical industry, which accounts for about 1.4 per cent of the global R&D growth pharmaceutical industry in value terms and 10 per cent in volume terms, is expected to remain a major R&D growth driver
• Cumulative overseas direct investments by India has expanded at a CAGR of 43.64 per Rapidly growing cent to USD265 billion during FY15 from USD21 billion in FY08, global car makers are overseas investment also looking to move their R&D investments in India
Source: Reserve Bank of India, TechSci Research Note: R&D - Research and Development; Figures mentioned are as per latest data available
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ADVANTAGE INDIA
JANUARY 2016 INNOVATION AND PATENTS
ADVANTAGE INDIA
2013 GrowingRobust demanddemand Attractive opportunities 2014 • Rising income and evolving • Vast opportunities in IT, R&D lifestyles have led to higher pharmaceuticals, automobiles, R&D spending: demand for aspirational products biotechnology and agriculture spending: USD42 • Indian companies’ investments in • India is the largest exporter of IT USD44 products and has the third largest billion R&D is not surprising given the billion importance of innovation to sustain pharma sector with a fast growing competitive edge contract research segment • Indian players are set to benefit from expiration of patents Advantage India High ratings Policy support
• Establishment of CoEs in various • PPP for promoting exchange of areas; NMITLI initiative on PPP scientific knowledge and R&D basis • Strengthening educational • Increased investments by private infrastructure players; setting up of R&D centers • Amendments to the Patents Act • During FY07–14, Intellectual (1970) to make it TRIPS-compliant Property Rights (IPR) applications • Setting up of NIC in 2010 increased at a CAGR of 5.5 per • Adoption of Science, Technology cent from 172,37 to 251,564 and Innovation Policy 2013
Source: R&D spending estimate by Battelle and R&D Magazine, TechSci Research Notes: F - Forecast, IPR - Intellectual Property Rights, CoE - Center of Excellence, PPP - Public Private Partnership, TRIPS - Trade Related Aspects of Intellectual Property Rights, NMITLI - New Millennium Indian Technology Leadership Initiative, NIC - National Innovation Council; Figures mentioned are as per latest data available JANUARY 2016 For updated information, please visit www.ibef.org 5 INNOVATION AND PATENTS
MARKET OVERVIEW AND TRENDS
JANUARY 2016 INNOVATION AND PATENTS
EVOLUTION OF INNOVATION AND R&D IN INDIA
2005 onwards Growth Era Early 1990s to 2005 Liberalization and Transition Era 1970 to early 1990s Indigenization Stage
• TRIPS under WTO • Augmentation of network of centrally-funded Before 1970 (1995) institutions and universities Introductory Stage • Amendments to the • Increase in R&D and exports in sectors such Patents Act (1970) to • Patents Act (1970) as IT, pharma, electronics and automobiles make it TRIPS • Innovations in automobiles such as Nano, • Recognition of compliant process patents the world’s least expensive car • Reintroduction of only • Numerous innovations from rural India product patents • Restricted foreign • Setting up of National Innovation Council • Reduction in tariff and ownership in Indian • Adoption of Science, Technology and • Indian Patents and non-tariff measures companies Innovation Policy 2013 Designs Act (1911) • Easing FDI norms • Focus on ‘reverse • Between January 2005 and December 2014, • Dependence on bulk engineering’ among • Shifting focus in India granted 3,575 patents to foreign imports pharmaceutical pharma towards companies • Establishment of CSIR, clinical research and companies • Cumulative FDI inflows have reached DRDO, ICAR, ISRO and new drug development USD265 billion during April 2000 to IITs September 2015
Source: Zinnov, Korn/Ferry International, Asia-Pacific Research Center, Stanford University, TechSci Research Notes: TRIPS - Trade Related Aspects of Intellectual Property Rights, WTO - World Trade Organisation JANUARY 2016 For updated information, please visit www.ibef.org 7 INNOVATION AND PATENTS
FORMS OF INTELLECTUAL PROPERTY
Patents
Copyright Trademarks
Intellectual Property (IP) Plant Variety Geographical Protection Indications
Layout Industrial Designs Designs
Source: Department of Industrial Policy and Promotion, TechSci Research
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INDIA AMONG THE WORLD’S LEADING R&D INVESTORS
Expected expenditure of world’s leading R&D It is expected to retain its eighth position in 2014, with R&D investors in 2014 (USD billion) investments increasing to USD44 billion from USD42 billion in 2013 United States 465 China 284 R&D investments has helped Indian companies to Japan 165 overcome tight competition with affordable products internationally Germany 92 South Korea 63 France 52 Spending per Researchers* United Kingdom 44 (in thousands) India 44 342 293 Russia 40 273 238 226 Brazil 33 214 202 181 173 171 157 155
58 Source: Nature Magazine ,Battelle, TechSci Research Notes: GERD - Gross Domestic Expenditure on R&D,
R&D - Research and Development; * - Data is for May 2015;
UK Italy
India Figures mentioned are as per latest data available
Brazil
China
Japan
Austria
France
Canada
Pakistan
Germany
SouthKorea UnitedStates
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STRONG GROWTH IN R&D INVESTMENTS IN INDIA OVER THE YEARS
India’s share of global R&D spending rose to 2.7 per cent in R&D spending in India (USD Billion) 2013 from 2.6 per cent in 2012 and was expected to be at 2.7 per cent in 2014 0.85% 0.85% 45 0.85% 0.85% India’s R&D investment growth is likely to outpace overall 44 GDP growth. During 2012–14, R&D spending (in terms of 0.85% PPP) was expected to be expand at a CAGR of 4.9 per cent 43 0.85% to USD44 billion, while GDP (in terms of PPP) would increase at a CAGR of 4.4 per cent 0.84% 42
0.84% 41 In 2015, R&D investments in India was 0.9 per cent of GDP 0.84% 0.84% which would further increase and reach 2.4 per cent by 40 2034 0.84% 39
0.84%
42 44 In developed and emerging economies, the ratio of private 40 0.83% 38 and public sector investments in R&D is generally around 2012 2013 2014 2:1. However, in India, as per recent estimates, private sector investments in R&D stand at just about half of that of R&D Expenditure (PPP) % of GDP-RHS the public sector, indicating huge potential for private players
Source: Battelle, Department of Science and Technology, TechSci Research Notes: CAGR - Compound Annual Growth Rate, PPP - Purchasing Power Parity, E – Expected; Figures mentioned are as per latest data available
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INDIA HAS BEEN EXPANDING ITS INVESTMENT HORIZON ABROAD
Cumulative overseas direct investment Cumulative overseas direct investments increased to (USD billion) USD265 billion in FY16* from USD21 billion in FY08 265 249
This has led to significant amount of technology transfer through industrial acquisitions 183
For instance, Lupin’s total patent filing reached 2,197 in 146 FY15 up from 600 in FY08. In FY15, the company filed 45 125 formulation patent, 58 API(Active Pharmaceutical 100 Ingredient) and 314 New Chemical Entity(NCE) patent. In addition, the company have 1400 scientists. 56 38 21 In 2015, the company invested around 10 per cent of their total revenue and this makes the company, the highest R & D spender in pharma industry. FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16*
Source: Reserve Bank of India, Battelle, TechSci Research Note: FY16*: Data till September 2015
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TRADEMARK APPLICATION ACCOUNT FOR MAJOR SHARE OF IPR APPLICATIONS
During FY14, the total Intellectual Property Rights(IPR) Break-up of Intellectual Property Rights (IPR) stood at 251,564 applications (FY14)
Trademark applications accounted for the largest share (79.51 per cent) of total applications at 2,00,005 in FY14 3.39% 0.03%
Trade Mark Patent and design applications accounted for 17.07 per cent (42,951 applications) and 3.39 per cent (8,533) share, 17.07% respectively Patent
Design
79.51% Geographical
Source: Department of Industrial Policy and Promotion, TechSci Research Note: Figures mentioned are as per latest data available
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IPR APPLICATIONS TRENDING NORTH
During FY07–14, Intellectual Property Rights (IPR) applications increased at a CAGR of 5.5 per cent from 172,374 to 251,564
Trademark applications expanded at a CAGR of 5.45 per cent over FY07–14 to 200,005.
Patent and design applications rose at a CAGR of 5.80 per cent and 6.42 per cent respectively, during the same period
Growing IP application activity indicates increased in-house R&D and innovation in India
Intellectual Property (IP) applications (‘000)
250 300
200 250 200
150
200.01
194.22 183.59
179.32 150 173.59
100 165.17 141.94
137.91 100
43.67
43.20
42.95
39.40
36.81 35.22 50 34.29
28.94 50
8.53
8.37 8.34
7.59
6.56
6.40
6.09 5.52 0 0 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14
Patent(LHS) Design(LHS) Trade mark(LHS) Total(RHS)
Source: Department of Industrial Policy and Promotion, TechSci Research Note: Figures mentioned are as per latest data available JANUARY 2016 For updated information, please visit www.ibef.org 13 INNOVATION AND PATENTS
INDIA IS FAST EMERGING AS A GLOBAL R&D HUB … (1/2)
The number of MNC R&D centers in India has grown at a MNC R&D centers in India CAGR of 13.8 per cent to 1,031 over 2000-13, with an overall employment base of 244,000
1031 Around 30 per cent of the top 1,000 global R&D spending organisations have centers in India CAGR: 13.8% 871 780 699 MNC captive centers in India along with Indian providers of engineering R&D outsourcing account for nearly 23 per cent 517 of the overall global engineering R&D outsourcing market
297 Most of the centers are located in metro cities – Bengaluru, 191 Delhi, Mumbai, Chennai and Hyderabad. However, MNCs have begun spreading out to tier-2 cities after 2005
Pre 2000 2002 2004 2006 2008 2011 2013 India’s robust talent pool of over 200,000 engineers has grown at an average rate of 9 per cent over the last five years; this has been supporting increased R&D activity Source: Zinnov Consulting, The Indian R&D Landscape, 2012 and Attrition, Hiring and Salary Increase Study, 2013, Crossing the value chasm, TechSci Research 45 per cent of the world's top 500 R&D spenders invest in Notes: CAGR - Compound Annual Growth Rate, India R&D - Research and Development
India has benefitted from alliances with foreign companies with our scientists and researchers getting exposed to the latest, state-of-the-art foreign technologies
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INDIA IS FAST EMERGING AS A GLOBAL R&D HUB … (2/2)
Bengaluru (erstwhile Bangalore) has 39 per cent of MNC MNC R&D centers distribution in India (2013) R&D centers, followed by Mumbai and Pune at 19 per cent
Others Until 2005, Tier-1 cities were the favorite destination for 6% MNCs due to the availability of rich talent, favorable Chennai policies, and better quality of life 11% Bengaluru However, post-2005, MNCs have started expanding to Tier- NCR 39% 2 cities, as they offered benefits such as higher catchment 13% area, lower attrition, and cost arbitrage
Hyderabad Total R&D talent pool in 2013 stood at 244,000 having a 11 12% per cent YoY growth Mumbai/ Pune 19% R&D related investments and processes attain easier approval from regulatory authorities globally. This has also increased focus on new generics Source: Zinnov Consulting, Attrition, Hiring and Salary Increase Study, 2013, TechSci Research Notes: CAGR - Compound Annual Growth Rate, R&D - Research and Development YoY- Year on Year
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INDIA IS ALSO GARNERING THE BENEFITS OF R&D OUTSOURCING
Companies across sectors (such as IT, consumer electronics, R&D outsourcing in India (USD Billion) personal devices, medical electronics, telecom and automobiles) are now offshoring complete product responsibility
42.0 India has become one of the most preferred location for engineering offshoring CAGR: 22.7% By 2020, USD42 billion worth of work related to R&D of product engineering is expected to be outsourced to India, growing by a CAGR of 22.7 per cent from 2003 18.3
The outsourced engineering R&D services market in India is expected to reach USD15 billion by 2020 from USD7.8 billion in 1.3 2015, growing at a CAGR of 13 per cent
2003 2014 2020
Source: Financial Express, Value Notes, TechSci Research Notes: R&D - Research and Development, IT - Information Technology; CAGR - Compound Annual Growth Rate; Figures mentioned are as per latest data available
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GLOBAL 500 COMPANIES PRESENCE IN INDIA
The top 500 R&D spenders contribute over USD577 billion Number of R&D centers for global 500 companies, 2014 with the top 100 R&D spenders alone contributing 66 per cent to the global R&D spend
In FY15, most of the leading pharma players spent 17 anywhere between USD58-325 billion on R&D, which 48 represented an increase both in absolute term as well as in 55 72 80 proportion to net revenues (8-11 per cent of sales) 4 83
More than one-third of the top 1,000 global R&D spenders 46 52 45 have centres in India. Around 50 per cent of the global 500 28 20 companies present have more than 10 per cent of the global headcount in India Top 50 Top 100 100- 200 200-300 300-400 400-500
Present Not present R&D spending by top six pharma giant FY16**
(USD million) Source: Zinnov- Crossing the value chasm, TechSci Research Notes: R&D - Research and Development * - Data is for FY15 160 164 **: Data is for FY16 ( Upto September 2015); 145 Figures mentioned are as per latest data available 115 85 58 28
Sun Dr Reddy Lupin Cipla Cadila Wockhart* Aurbindo* Pharma
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STRONG POLICY SUPPORT CRUCIAL IN DEVELOPING THE SECTOR
• The benefit of section 10 (23 G) of the IT Act has been extended to financial institutions Encouraging the private that provide long-term capital to hospitals with 100 beds or more sector • Government is encouraging the PPP model to improve availability of healthcare services and provide healthcare financing
• The benefit of section 80-IB has been extended to new hospitals with 100 beds or more Encouraging that are set up in rural areas; such hospitals are entitled to 100 per cent deduction on profits for five years investments in rural • Government has allocated USD612.31 million for agricultural research under Union areas Budget 2015-16 • Two more agricultural institutes will be established in states of Jharkhand and Assam
• Customs duty on life-saving equipment has been reduced to 5 per cent from 25 per cent Tax incentives and exempted from countervailing duty • Import duty on medical equipment has been reduced to 7.5 per cent
Incentives in the • Incentives and tax holidays are being offered to hospitals and dispensaries providing medical travel industry health travel facilities
Source: Union Budget 2014-15, Union Budget 2015-16, Health Ministry, TechSci Research
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INCREASING IN THE PATENT APPLICATION FILING (FY14)…..(1/2)
Top 5 Indian Applicants for patents in the field of Information Top 5 Indian Applicants For Patents from Science and Technology Research & Development Organizations Application S.No. Name of the Company S.No. Name of the Company Application Filled Filled 1 Tata Consultancy Services Limited 267 Council of Science & Industrial 1 267 Research Samsung R & D Institute India- 2 84 Defence Research & Development Bangalore Private Limited 2 116 Organization 3 Infosys 83 Indian Council of Agricultural 3 71 Samsung India Software Research 4 66 Department of Biotechnology, Operational Private Limited 4 34 Government of India 5 Wipro Limited 59 5 Jubilant Life Sciences Limited 29 Top 5 Indian Applicants for patents from Institutes and Top 5 Foreign Applicants Universities S.No. Name of the Company Application Filled S.No. Name of the Company Application Filled 1 Qualcomm incorporated 1062 Indian Institute of Technology 1 342 (Collective) 2 Koninklijke Philips N.V. 839 Telefonaktiebolaget LM 2 Amity University 92 3 386 Saveetha School of Engineering, Ericsson (PUBL) 3 74 Saveetha University 4 Robert Bosch GMBH 375 4 Bharat University 37 Samsung Electronics Co. 5 371 5 Indian Institute of Science 32 Ltd
JANUARY 2016 Source: Intellectual Property India 2013-14 report For updated information, please visit www.ibef.org 19 Note: Figures mentioned are as per latest data available INNOVATION AND PATENTS
INCREASING IN THE PATENT APPLICATION FILING (FY14)…..(2/2)
Top 5 Indian Patentees Top 5 Foreign Resident Patentees S.No. Name of the Company Application Filled S.No. Name of the Company Application Filled Council of Scientific & 1 138 1 98 Qualcomm Incorporated Industrial Research GM Global Technology 2 79 Samsung India Software 2 84 Operations Inc Operations Pvt Ltd Telefonaktiebolaget LM Hindustan Unilever 3 50 3 32 Ericsson (PUBL) Limited Siemens Bharat Heavy Electricals 4 46 4 22 Aktiengesellschaft Limited Samsung Electronics Co. 5 46 5 Tata Motors Limited 21 Ltd
Source: Intellectual Property India 2013-14 report Note: Figures mentioned are as per latest data available
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KEY PLAYERS IN R&D - SCIENTIFIC AND R&D ORGANISATIONS* … (1/2)
Organisation Business description
Council of Scientific and Industrial Research (CSIR) • CSIR is India’s largest R&D organisation, with 38 national laboratories, 39 outreach centers, 3 Innovation Complexes, 5 units, 4600 active scientists supported by about 8000 scientific and technical personnel. On an average CSIR files about 200 Indian patents and 250 foreign patents per year. About 13.86% of CSIR patents are licensed, a number which is above the global average. 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, leather and metals, minerals and manufacturing etc. • CSIR is ranked at 84th among 4851 institutions worldwide and is the only Indian organisation among the top 100 global institutions, CSIR has filled 267 patent application in FY14.
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 • 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. DRDO has filled 116 patent application in FY14. • Its research areas include aeronautics, armaments, combat vehicles, electronics, instrumentation engineering systems, missiles, materials, naval systems, advanced computing, simulation and life sciences, ballistics test facility got inaugurated in Ramgarh.
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. ICAR has filled 71 patent application in FY14 • It is the apex body for coordinating, guiding and managing research and education in agriculture, including horticulture, fisheries and animal sciences in India.
Source: Organisational websites, IP India, TechSci Research Notes: R&D - Research and Development; IP – Intellectual Property, *This list is indicative JANUARY 2016 For updated information, please visit www.ibef.org 21 INNOVATION AND PATENTS
KEY PLAYERS IN R&D - SCIENTIFIC AND R&D ORGANISATIONS* … (2/2)
Organisation Business description
India Space Research Organisation (ISRO) • ISRO is engaged in development of space technology and its application to various national tasks, launched # Mangalyan successfully in its very first attempt . ISRO has filled 12 patent application in 2014 • The organisation has 19 centers across India to pursue R&D activities and ISRO currently has a constellation of 9 communication satellites, 1 meteoro- logical satellite, 10 earth observation satellites and 1 scientific satellite • Its research areas include communication satellites for television broadcast, telecommunications and meteorological applications, and remote sensing satellites for management of natural resources • On June 28, 2015, ISRO launched Polar Satellite Launch Vehicle, PSLV-C27,which is the fourth satellite in the Indian Regional Navigation Satellite System (IRNSS)
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. ICMR has filled 14 patent applications in 2014. • The council has a fleet of 21 institutes(mission oriented national institute), six regional medical research centers and five units engaged in medical research • The council’s 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 17 patent applications in FY14
Source: Organisational websites, TechSci Research Notes: R&D - Research and Development, # on 24 September 2014, *This list is indicative JANUARY 2016 For updated information, please visit www.ibef.org 22 INNOVATION AND PATENTS
KEY PLAYERS IN R&D - INSTITUTES AND UNIVERSITIES* … (1/2)
Organisation Business description
Indian Institutes of Technology (IITs) • It is a group of autonomous engineering and technology oriented institutes of higher education • Indian Institutes of Technology (IITs) is planning to monetise intellectual properties (IPs) by exploring tie-ups with firms that invest in "inventions". In 2014, IITs have filled 342 patent application. • The Indian Institute of Technology-Bombay (IIT-Bombay) has shown a massive growth in patent filing and showing a rise of nearly 400 per cent from 2008-09 where just 19 patents were filed.
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 2014, R&D activities comprised 89 in-house and 74 externally funded research projects, including 19 NAIP projects in consortium mode with financial outlay of USD21.95 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. A new center for Brain Research is expected to contribute to future growth • In FY13, the institute filed the third highest number of patent applications amongst all the institutes and universities in India with 31 applications, while in FY14, IISc have filled 32 patent applications
Source: Organisational websites, IP India, TechSci Research Notes: R&D - Research and Development, IP - Intellectual Property,
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KEY PLAYERS IN R&D - INSTITUTES AND UNIVERSITIES* … (2/2)
Organisation Business description
The Energy and Resources Institute (TERI) • TERI is engaged in developing solutions to global problems in fields of energy, environment and sustainable development, has also established research centers in Bengaluru, Goa, Guwahati, Himalayas, Mumbai • The important research areas include biotechnology, earth science and climate change, technology development, social transformation, and modelling and economic analysis • Deals in various sector projects such as Agriculture, Coal, Energy, Environment, Industry, Renewable Energy, Information and Communication Technology, Rural Development, Climate Change, Economy, Forestry and Biodiversity and etc. rd • On 3 December, 2015 TERI reveals the ‘Corporate Vision on Climate Change’ at COP 21
Institute of Life Sciences (ILS) • ILS undertakes basic and translational research in frontier areas of life sciences • The institute’s 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
Source: Organisational websites, TechSci Research Notes: R&D - Research and Development, *This list is indicative
JANUARY 2016 For updated information, please visit www.ibef.org 24 INNOVATION AND PATENTS
KEY PLAYERS IN R&D - PRIVATE SECTOR COMPANIES*
Organisation Business 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 • Worldwide, HUL has over 20,000 registered patents and patent applications • HUL expenditure on scientific research and development is around USD5.3 million in FY15, where the total revenue expenditure is USD4.85 million and USD0.42 million expenditure made as a capital expenditure
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 total value of the patent is around USD15.2 million till FY15 as compared to USD18.1 million in FY14. • The total patents filed was 72 and 115 patents were granted as on FY15.
Cipla Limited • Cipla’s R&D division focuses on new product development and new drug delivery systems across a range of therapies • The company’s total R&D spending increased by 6.2 per cent in FY15 as compared to USD86 million in FY14 • In 2015, Cipla filed more than 200 formulation development projects underway. Company filled 12 formulation in north America, 78 in Europe region while more than 1800 internationally • It is among the top companies domestically in R&D spending
Source: Organisational websites, TechSci Research Notes: R&D - Research and Development, Growth, *This list is indicative
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INNOVATION HAS BEEN A CORNERSTONE OF THE COUNTRY’S DEFENCE SECTOR
INS Vikrant Agni-V missile Arihant Class Tejas Submarines • India Indigenous • Successfully test • Second supersonic Aircraft Carrier (IAC) fired in April 2012 • With its launch in aircraft to be • Total displacement • India joined an elite 2009, India joined developed of over 40,000 group of nations an elite group of indigenously by tonnes having ICBM nations having Hindustan • Being built by technology nuclear-powered Aeronautics Limited Cochin Shipyard • Indigenously submarines (HAL) Limited developed by DRDO • Developed by HSL • To be inducted by • Expected to be • To be inducted by 2015 at a cost of Commissioned in 2016 after few more USD103.1 million 2017 trials
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 JANUARY 2016 For updated information, please visit www.ibef.org 26 INNOVATION AND PATENTS
PORTERS FIVE FORCES ANALYSIS – HEALTHCARE & BIOTECHNOLOGY
JANUARY 2016 INNOVATION AND PATENTS
PORTERS FIVE FORCES ANALYSIS – HEALTHCARE
Competitive Rivalry
• In a bid to discover the next block buster drug, competition between the pharma companies are intense • In addition, expiry of patents will also lead to further competition from Threat of New generic drug manufacturers Entrants (Low)
Threat of New Entrants Substitute Products
• Huge R&D expenditure • Cheaper generic formulations requirement reduces threat of pose a threat to healthcare Bargaining Competitive Threat of new entrant companies Power of Rivalry Substitute • Government regulation is strict Customers (High) Products for this industry (Low) (Low)
Bargaining Power of Suppliers Bargaining Power of Customers Bargaining • Bargaining power of suppliers • Bargaining power of customers Power of in this industry is high because is low due to undifferentiated Suppliers quality of products and timely products (High) delivery matter and there is less number of quality suppliers in this industry Source: TechSci Research Note: R&D – Research and Development JANUARY 2016 For updated information, please visit www.ibef.org 28 INNOVATION AND PATENTS
PORTERS FIVE FORCES ANALYSIS – BIOTECHNOLOGY
Competitive Rivalry
• High entry barriers due to the capital-intensive nature of the industry has reduced competitive rivalry • Entry of new players in the market has led to increased competition. Threat of New However, given the low success rate, rivalry is low Entrants (Low)
Threat of New Entrants Substitute Products
• Capital intensive nature of • Patent protection stops the Bargaining Substitute industry reduces the threat of threat of alternative drugs and Power of Competitive Products new entrants chemicals for a period of time Customers Rivalry (Low) • Strict government regulation (Low-Moderate) (Moderate)
Bargaining Power of Suppliers Bargaining Power of Customers Bargaining • Suppliers’ power is low • Individual buyers do not have Power of because the raw materials are influence on pricing Suppliers largely undifferentiated • However, government price (Low) control enhances buyer’s power
Source: TechSci Research Note: R&D – Research and Development JANUARY 2016 For updated information, please visit www.ibef.org 29 INNOVATION AND PATENTS
STRATEGIES ADOPTED – HEALTHCARE & BIOTECHNOLOGY
JANUARY 2016 INNOVATION AND PATENTS
STRATEGIES ADOPTED – HEALTHCARE
• Private players in the industry are making their supply chain efficient and leveraging economies of scope to reduce cost. One such example is Narayan Hrudayalaya (NH) where health care is provided at affordable cost. NH reduces cost by • High procurement of medical supplies Cost leadership • High-volume by high capacity utilisation and staff productivity • Good human capital management (i.e. training) • Leveraging the benefit of Information Technology to reduce cost and improve healthcare delivery
• Developing new and innovative healthcare services will help players in differentiating themselves from others Differentiation • Healthcare providers are also trying to provide better services to differentiate themselves • Players in Healthcare sector are heavily spending on R&D. For example, in 2015, Lupin opened a R&D centre for inhalation products in Florida
• Sun Pharma is focussing on specialty and chronic therapies such as neurology, oncology, dermatology, rather than competing in anti infective and gastrointestinal therapies Focus markets. Sun Pharma attained volume and value leadership in many of these therapies • Certain players in industry focus only on providing one kind of health care service to its customers and gain expertise through research in the area. This also helps them to be the leader in that service. One such example is Tata Memorial Hospital which is focused on treatment of cancer and provides leading cancer treatment in India
Source: Company website, TechSci Research Note: R&D – Research and Development JANUARY 2016 For updated information, please visit www.ibef.org 31 INNOVATION AND PATENTS
STRATEGIES ADOPTED – BIOTECHNOLOGY
• Higher emphasis on technological innovations that will improve efficiency and help in achieving cost leadership. For example, Serum Institute of India is the leader in Cost leadership manufacturing vaccines against Rubella, Tetanus, Measles and Diphtheria and it supplies vaccines to more than 100 countries across the globe. Due to high volume sales the company has relatively low manufacturing cost
• Investing heavily on R&D to create new and innovative products. Biocon has subsidiaries, Differentiation Syngene International Limited and Clinigene International Limited, these companies have been set up to focus on clinical trials , drug discovery and development.
• Companies are creating barriers by applying for patents to curb replication of the drug by Creating barriers other manufacturer. For example, Panacea has been granted 400* patents in India and worldwide
Source: Company website, TechSci Research Notes: R&D – Research and Development, Note*-Until January 31st 2015
JANUARY 2016 For updated information, please visit www.ibef.org 32 INNOVATION AND PATENTS
GROWTH DRIVERS
JANUARY 2016 INNOVATION AND PATENTS
STRONG DEMAND AND POLICY SUPPORT DRIVING INVESTMENTS
Growing demand Policy support Increasing investments
Evolving consumer Establishment of lifestyles PPP in R&D CoEs, NMITLI initiative
Inviting Resulting in Liberalisation and Strengthening Providing support to increasing competition educational global projects from infrastructure India
Amendments to the Proximity to future Increasing corporate Patents Act & R&D investments growth markets Setting up of NIC
Source: Battelle, Electronics for You, Organisational websites, TechSci 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
JANUARY 2016 For updated information, please visit www.ibef.org 34 INNOVATION AND PATENTS
PHARMACEUTICAL SECTOR DRIVING R&D GROWTH
India’s pharmaceutical market is highly fragmented, with R&D spending by top six Pharma giants in FY16** 300 large and 18,000 mid-sized and small companies (USD million)
The country’s pharma industry accounts for about 1.4 per cent of the global pharma industry in value terms and 10 per cent in volume terms 160 164 145 Indian healthcare sector, one of the fastest growing industry, is expected to advance at a CAGR of 17 per cent 115 during 2011–20 to reach USD280 billion 85 58 This would help drive R&D growth in India; the average R&D expenditure by Indian pharma companies is close to 6 28 per cent of total revenues
Sun Dr Reddy Lupin Cipla Cadila Wockhart* Aurbindo* Pharma
Source: TechSci Research Notes: * - Data is for FY15 **: Data is for FY16 ( Upto September 2015)
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POLICY SUPPORT AIDING GROWTH IN THE SECTOR … (1/2)
• Exchange of scientific knowledge between research centers, national laboratories, institutes of higher learning and the industry • The Indian Government plans to involve the private sector in R&D mainly for sectors like vaccines, drugs and pharmaceuticals, super computing, solar energy and electronic PPP in R&D hardware. The govt. has announced to create a USD16 million fund for setting up R&D units with the help of industries • The government has created a USD1.1 billion public-private partnership fund to support research and development in India
• Government has announced to set up 5 new All India Institute of Medical Sciences in Jammu & Kashmir, Punjab, Tamil Nadu, Himachal Pradesh, Assam and set up of IIT in Funded institutions and Karnataka and Dhanbad • Foreign universities permitted to enter the higher education system in India by establishing foreign universities their own campuses or joint ventures with existing universities • Atal Innovation Mission with USD24.84 million will boost the academicians, Entrepreneurs and researchers to work towards innovation
• In Union Budget 2015-16, Government of India has allocated USD1193.58 million to Science & Technology Science & Technology department. • In Union Budget 2015-16, Government has allotted Department of Science and Technology USD557 million, Department of Biotechnology received a grant of USD263.01 million, and Ministry of Earth Sciences received a budgetary allocation of USD193 million
Source: Battelle, Electronics for You, Union Budget 2015-16, Organisational websites, TechSci Research Note: PPP - Public Private Partnership JANUARY 2016 For updated information, please visit www.ibef.org 36 INNOVATION AND PATENTS
POLICY SUPPORT AIDING GROWTH IN THE SECTOR … (2/2)
• Atal Innovation Mission (AIM) established in NITI Aayog with initial funding worth USD24.56 million for promotion of research and development sector. The mission aims at Atal Innovation Mission providing innovation promotion platform to academicians, entrepreneurs and researchers. • Atal Innovation Mission would provide the framework to government for encouraging and promoting self employment in Indian youth
Draft Patents • The time limit given for submitting the application for grant has been reduced to 4 months from 12 months, providing an extension of 2 months (Amendment) Rules, • Necessary permissions to be taken from the concerned authority before the grant of 2015 patents
• In 2010, NIC was set up to implement strategies for inclusive innovation in India and prepare a roadmap for innovation over 2010-20, idea is to build a domestic model to cater to Indian needs • Tasks of NIC include creating a framework to encourage innovation by central and state National Innovation governments, universities, R&D institutions and SMEs Council (NIC) • NIC build digital database of innovations across sectors and at grassroot. In addition NIC has also set up sectorial Innovation council in Maharashtra • NIC and the Ministry of Micro, Small and Medium Enterprises (MSME) jointly created India Inclusive Innovation Fund (IIIF), currently IIIF investment limit is restricted to USD82 million and it invests in sectors like healthcare, water, energy and agriculture.
Source: Battelle, TechSci Research Note: SMEs - Small and Medium Enterprises
JANUARY 2016 For updated information, please visit www.ibef.org 37 INNOVATION AND PATENTS
SCIENCE TECHNOLOGY AND INNOVATION (STI) POLICY 2013
Introduction of STI • In January 2013, the Government of India introduced the Science, Technology and Innovation (STI) policy 2013 at the centenary sessions of the Indian Science Congress Policy 2013 held at Kolkata
• The STI policy is aimed at helping India become one of the top five global scientific Vision of STI Policy powers by 2020, by taking advantage of large demographic pool of engineers and science graduates
Rising involvement of • STI aims to boost innovation through Research and Development (R&D) led by the Public- Private Partnership (PPP) mode thereby increase the investments on Research and the private sector Development (R&D) to 2 per cent of GDP by 2017 from current 1 per cent
• The policy seeks to increase the number of full-time R&D personnel by 66 per cent over Increase in human 2013–17 and expand the number of publications from the current 3.5 per cent of global resources share to around 7 per cent by 2020
Source: TechSci Research
JANUARY 2016 For updated information, please visit www.ibef.org 38 INNOVATION AND PATENTS
RECENT INVESTMENTS IN R&D BY KEY PLAYERS
2015 2014 2013
• Jan 22: Intel India to invest over • Jan 13: DuPont has double • August 2015: Foxconn announced USD120 million to expand its their R&D activities in India to invest USD5 billion in India over Bengaluru R&D center • April 13: Yamaha announced next five years to set up R&D • Mar 07: BASF opens global R&D the establishment of a R&D centers and manufacturing plants center in Mumbai centre in India • Sep10: Valvoline Communications • Jun 13: Huawei has set up a • May 2015: Ford Motor company Ltd (VCL) a JV between Ashland new Research and have announced to invest around Inc and Cummins India Ltd will Development (R&D) centre in USD829.46 million in R & D center open its R&D centers in Ambernath Bengaluru with an investment Chennai near Mumbai in Maharashtra of USD150 million • Jul 13: OneOcean Corporation has set up • July 2015: Lupin, has decided to ClipCard Technology (R&D) invest USD185.63 million in the centre in India pharma sector. • Oct 13: Carraro India has set up a new R&D centre in India
Source: India Electronic News, Moneycontrol, CNBC, Economic Times, Appliancemagazine.com, Business Standard, The Hindu, Company websites, TechSci Research Note: R&D - Research and Development
JANUARY 2016 For updated information, please visit www.ibef.org 39 INNOVATION AND PATENTS
RECENT INVESTMENTS IN R&D BY GOVERNMENT
Centers of Excellence Central and foreign NMITLI Centrally funded institutes (CoEs) universities
• New universities in 16 • In 2015, National • The programme identifies • In Union Budget 2015-16, uncovered states Association of Software areas for development Government of India has and Services Companies based on national announced to set 5 new • The remaining 14 new Central (NASSCOM), Department consultation and invites AIMS, 2 new IITs and 2 Universities will be set up as of Electronics & best partners from IIMs world class centers of Information Technology institutions, academia and excellence at different • These institutes together (DeitY) and Education and private sector to play a role locations account for over 80 per Research Network in the process cent of the total PhDs in • Foreign universities can enter (ERNET) jointly has • NMITLI have received a engineering in India higher education system in formed Center of budgetary allocation of India by having their own Excellence with the seed • The institutes are also USD4.91 million under the campuses or joint ventures funding done by amongst the top Indian Union Budget 2015-16. It with existing universities government. applicants for patents from has initiated 60 largely the ‘institutes and • 12 teacher education courses • COEs are generally run on networked projects in universities’ category and three new programmes PPP model diverse areas involving 85 have been upgraded industry partners and 280 • CoEs have been set up in R&D groups from different the areas of telecom, institutions with investment wireless technology, bio- outlay of USD114 million informatics, lasers and optoelectronic devices and nano-electronics Source: India Electronic News, Moneycontrol, CNBC, Economic Times, Union Budget, Appliancemagazine.com, Business Standard, The Hindu, Company websites, TechSci Research Note: R&D - Research and Development NMITLI-New Millennium Indian Technology Leadership Initiative JANUARY 2016 For updated information, please visit www.ibef.org 40 INNOVATION AND PATENTS
OPPORTUNITIES
JANUARY 2016 INNOVATION AND PATENTS
OPPORTUNITIES (1/2)
• Indian healthcare sector, one of the fastest growing industry, is expected to advance at a CAGR of 22.87 per cent during 2015–20 to reach USD280 billion • Contract research is one of the fastest growing segment in the Indian healthcare industry. CRAMS industry is estimated to reach USD18 billion in 2018 and expected to witness a strong growth at a CAGR of 18-20 per cent during 2015-18 Pharma and healthcare • Indian pharmaceuticals market is estimated to reach around USD30 billion in 2015. The country’s pharmaceutical industry is expected to expand at a CAGR of 12.89 per cent over 2015–20 to reach USD55 billion • Indian companies have received 113 ANDA approvals from US FDA from January- September 2015
• India is seen as a product development destination Information Technology • Companies are offshoring their product responsibilities including complex services like (IT) product management
• Research is being carried out by individual companies as well as industry associations Automobiles such as ARAI in various areas such as structural dynamics, safety, NVH and electronics • India is the sixth largest auto market in the world and is poised to become the third largest by 2020
Source: ARAI, Business Standard, India Law Office, Deloitte, TechSci Research Notes: IT - Information Technology, ARAI - Automotive Research Association of India, NVH - Noise, Vibration and Harshness
JANUARY 2016 For updated information, please visit www.ibef.org 42 INNOVATION AND PATENTS
OPPORTUNITIES(2/2)
• By FY25, India’s biotech industry is estimated to increase to USD100 billion from USD7.0 billion in FY15 • Protein and antibody production, and fabrication of diagnostic protein chips are promising Biotechnology areas for investment • Stem cell research, cell engineering and cell-based therapeutics are other areas, wherein India will cash in its expertise
• 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 • According to International Service for the Acquisition of Agri-Biotech Applications, India has the fourth largest area covered under genetically modified crops • In India, 11.57 million hectares of area is covered under genetically modified crops which is majorly dominated by Bt cotton. • In 12th Five-Year Plan, DBT has proposed to support 10 agricultural universities through R&D grants to promote R&D on agriculture • Two agricultural institutes will be established in states of Jharkhand and Assam#
Source: ARAI, Business Standard, Planning Commission, India Law Office, TechSci Research Notes: IT - Information Technology, ARAI - Automotive Research Association of India, NVH - Noise, Vibration and Harshness, DBT – Department of Biotechnology # Announced in budget 2015-16 with a sum of USD16.3 million
JANUARY 2016 For updated information, please visit www.ibef.org 43 INNOVATION AND PATENTS
OPPORTUNITIES OF JOB CREATION BY GLOBAL 500 COMPANIES
There is a potential to create 200,000 R&D jobs by global R&D headcount by G500 (‘000) 500 companies in the next five years
595 During 2013-18, R&D headcount is expected to increase at a CAGR of 15.8 per cent 489 229
Around 50 per cent of the global 500 companies present have more than 10 per cent of the global headcount in India 313
366
176
2013 2018
R&D headcount Remaining addressable population
Source: Zinnov - Crossing the value chasm Notes G500 – Global 500 companies
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India with more than 350 Companies and more than 250 R & D centers from G500
G500 presence across locations in India (Till December, 2013) Tier 1 locations
Others 24 Emerging Locations
Mumbai 26 Chandigarh
Chennai 38 NCR
Hydrabad 43
Pune 45 Ahmedabad Vadodara NCR 62 Nashik Hyderabad Kolkata Bangalore 125 Mumbai Pune 0 20 40 60 80 100 120 140 Vishakhapatnam Goa Bangalore
Mangalore Chennai Coimbatore
Source: Zinnov - Crossing the value chasm, News Articles, TechSci Research Notes G500 – Global 500 companies JANUARY 2016 For updated information, please visit www.ibef.org 45 INNOVATION AND PATENTS
SUCCESS STORIES
JANUARY 2016 INNOVATION AND PATENTS
LUPIN: ON A HIGH GROWTH PATH … (1/2)
Lupin is a renowned pharma player having a wide range of Patents filed by Lupin quality, affordable generic and branded formulations and APIs
Lupin has emerged as the fifth largest and among the top 314
five fastest-growing companies in the US 232
It is one of the world’s largest manufacturers of TB drugs
and has significant market share in the cardiovascular, 108
diabetology, asthma, paediatrics, CNS, Anti-infectives and 84
75
60 58
NSAIDs therapy segments 47
45
43
42 42
41
39
38
26 26
17
14
12 5 By FY15, Lupin’s total patent filing reached 2,197 up from 600 in FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 Formulation Patents API/Process Patents NCE Patents The company is amongst the fastest growing in top 10 generic pharmaceutical players in Japan and South Africa Source: Lupin website, Lupin Reports Notes: API - Active Pharmaceutical Ingredient, CNS - Central Nervous System, NSAIDS - Non-Steroidal Anti-Inflammatory Drugs, TB - Tuberculosis, NCE - New Chemical Entity
JANUARY 2016 For updated information, please visit www.ibef.org 47 INNOVATION AND PATENTS
LUPIN: ON A HIGH GROWTH PATH … (2/2)
Its revenues increased from USD822.5 million in FY09 to Lupin net sales (USD million) USD1.0 billion in FY16 (April-September 2015), at a CAGR of 3.2 per cent
Lupin’s domestic formulations business grew by 5 per cent recording revenues of USD502.6 million for FY14-15 as compared to USD414 million for FY13-14 CAGR: 3.2% 2090.2 1839.2 1742.1 1484.6 1250.9 1006.7 1,024 822.5
FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16* Source: Lupin website Notes: CAGR - Compound Annual Growth Rate *: Up to September 2015
JANUARY 2016 For updated information, please visit www.ibef.org 48 INNOVATION AND PATENTS
INFOSYS: NURTURING INNOVATION IN IT … (1/2)
Infosys is 3rd highest number of patents applications in India Indian IT patent applications ( FY14)
Research activity for different areas is allocated amongst Tata Consultancy* 206 dedicated labs such as Software Engineering lab, Convergence lab, Security and Privacy lab, Distributed Samsung R & D Institute India* 100 Computing lab and E-Com lab Infosys 83 During FY11-15, the company’s revenues increased at a Samsung India Software Operations 66 CAGR of 9.7 per cent to USD8.7 billion from USD6.0 billion Private Limited Wipro Limited 59 During the same period, net profit expanded at a CAGR of Indian Institute of Technology 59 7.5 per cent to USD2.0 billion from USD1.5 billion (Collective)
Infosys spent USD97.9 million in R&D expenses during Income and net profit (USD billion) FY15
10 2.5 8 2 2 1.7 1.7 1.8 6 1.5 1.5 4 1.0 1
2 0.5
6 6.9 7.4 8.2 8.7 4.6 Source: Office of the Controller General of Patents, 0 0 Designs and Trademarks Annual Report, Company FY11 FY12 FY13 FY14 FY15 FY16* Annual Reports, TechSci Research Sales Net Profit Note: * - Data is till September 2015
JANUARY 2016 For updated information, please visit www.ibef.org 49 INNOVATION AND PATENTS
TCS: NURTURING INNOVATION IN IT… (2/2)
During FY09-16**, the company’s revenues increased at a Sales and net profit (USD billion) CAGR of 5.45 per cent to USD8.7 billion from USD6 billion
18 3.5 During the same period, net profit expanded at a CAGR of 8.12 per cent to USD1.9 billion from USD1.1 billion 16 3 14 2.5 TCS spent USD37.3 million in R&D expenses during FY15, 12 up 13.2 per cent from the USD33 million spent in FY14 10 2 8 1.5 6 1 4
2 0.5
6.3 8.2 10.4 11.6 13.6 15.7 8.7 6 0 0 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16**
Sales Net Profit
Source: Company Annual Reports, TechSci Research: Note: CAGR - Compound Annual Growth Rate, **: Up to September 2015
JANUARY 2016 For updated information, please visit www.ibef.org 50 INNOVATION AND PATENTS
HUL: A LEADING INNOVATOR IN FMCG
Incorporated in 1933, HUL is India’s leading company by Strong research and development (USD million) sales in the Fast-Moving Consumer Goods (FMCG) sector in India. British-Dutch company Unilever owns a majority stake of 52 per cent in HUL
HUL wins the top FMCG award at the Dun & Bradstreet Corporate Awards 2015 CAGR: 2.89% 34.4 Hindustan Unilever Limited (HUL) has been ranked No 1 in India on the Forbes list of Most Innovative Companies 22 20.7 across the globe for 2014. In the global list, HUL ranks 14th 19 and is the only Indian company in the Top 50. 15.1 10.2 The company has over 20,000 registered patents and patent applications worldwide FY10 FY11 FY12 FY13 FY14 FY15 HUL is also driving innovation in various categories such as Source: Economic Times, Company Annual Reports, oral care, personal products and soaps & detergents etc. Company website, TechSci Research Notes: CAGR: Compound Annual Growth Rate,
JANUARY 2016 For updated information, please visit www.ibef.org 51 INNOVATION AND PATENTS
USEFUL INFORMATION
JANUARY 2016 INNOVATION AND PATENTS
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 center, 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
JANUARY 2016 For updated information, please visit www.ibef.org 53 INNOVATION AND PATENTS
GLOSSARY … (1/2)
API: Active Pharmaceutical Ingredient
ARAI: Automotive Research Association of India
CAGR: Compound Annual Growth Rate
CoE: Center 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
JANUARY 2016 For updated information, please visit www.ibef.org 54 INNOVATION AND PATENTS
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
WTO: World Trade Organisation
Wherever applicable, numbers have been rounded off to the nearest whole number
JANUARY 2016 For updated information, please visit www.ibef.org 55 INNOVATION AND PATENTS
EXCHANGE RATES
Exchange rates (Fiscal Year) Exchange rates (Calendar Year)
Year INR equivalent of one USD Year INR equivalent of one USD
2004–05 44.81 2005 43.98 2005–06 44.14 2006 45.18 2006–07 45.14 2007 41.34 2007–08 40.27 2008 43.62 2008–09 46.14
2009–10 47.42 2009 48.42
2010–11 45.62 2010 45.72
2011–12 46.88 2011 46.85 2012–13 54.31 2012 53.46 2013–14 60.28 2013 58.44
2014-15 61.06 2014 61.03
2015-16(Expected) 61.06 2015(Expected) 63.72 Source: Reserve bank of India, Average for the year JANUARY 2016 For updated information, please visit www.ibef.org 56 INNOVATION AND PATENTS
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