A COMPARATIVE ANALYSIS OF PRIVATE SECTOR R&D INCENTIVISATION: LESSONS FOR INDIA

Research and Development (R&D) has become one of the essential parameters for determining national economic growth and productivity. Countries like USA, China, Japan, Germany and S. Korea, which have been spending substantially on R&D have emerged as the most innovative and technological advanced nations. India is not a major player in this domain and spends nominally (less than one percent of GDP) on R&D. In India, two-thirds of the R&D expenditure comes out of the government’s kitty and the contribution of the private sector is much below par. In the present study, a comparative analysis of R&D incentive award schemes executed by India and the top ten R&D spending countries (USA, China, Japan, S. Korea, France, Russia, U.K. and Brazil) has been carried out to draw relevant lessons for India to boost private sector R&D. The study offers ways and means to stimulate private sector engagements in R&D in India