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Ensuring Sustainable Support for Research and Development Funding

Context:

National Science Day, observed on 8th February each year, commemorates the discovery of the Raman Effect and recognizes the invaluable contributions of scientists to India’s progress. The day emphasizes the pivotal role of science in fostering sustainable development.

Relevance:

GS III: Science and Technology

Dimensions of the Article:

  1. National Science Day
  2. India’s Research and Development (R&D) Spending: A Concerning Decline
  3. Challenges in Sustainable Funding for Research and Development (R&D)
  4. Strategies to Enhance R&D Spending in India

National Science Day

Origin of the Day:

  • National Science Day is commemorated on the day of the discovery of the Raman Effect by Indian Physicist Chandrasekhara Venkata Raman.
  • The Raman Effect involves the scattering of light through transparent materials, causing alterations in wavelength and energy.

Discovery and Recognition:

  • In 1928, on 28th February, CV Raman made the groundbreaking discovery of the Raman Effect.
  • For his significant contributions to Physics, he was awarded the Nobel Prize in Physics in 1930.

Theme of the Day:

  • The theme for National Science Day is “Indigenous Technologies for Viksit Bharat.”

Significance:

  • Raises awareness about the practical applications of science in daily life.
  • Acknowledges and celebrates scientists’ efforts and achievements in advancing human welfare.

Observing the Day:

  • Understanding the progress of science and technology.
  • Identifying areas that require additional efforts for improvement.

India’s Research and Development (R&D) Spending: A Concerning Decline

Current Expenditure Trends:

  • In 2020-21, India’s R&D spending stands at 0.64% of the GDP, a decrease from 0.8% in 2008-2009 and 0.7% in 2017-2018.

Government Calls and Policy Goals:

  • Despite government agencies urging a doubling of R&D spending, the current trend shows a decline.
  • The 2013 Science, Technology, and Innovation Policy aimed for 2% of GDP for Gross Expenditure on R&D (GERD), a goal reiterated in the 2017-2018 Economic Survey.

Uncertain Factors Impacting R&D Spending:

  • The reasons for the reduction in R&D spending are unclear.
  • Possible factors include insufficient coordination among government agencies and a lack of strong political will to prioritize R&D expenses.

Global Comparisons:

  • Developed nations allocate between 2% and 4% of their GDP to R&D.
  • In 2021, OECD member countries averaged 2.7% of GDP on R&D, with the U.S. and the U.K. consistently exceeding 2% over the past decade.

Advocating for Increased Allocation:

  • Experts recommend that India should allocate at least 1%, ideally 3%, of its GDP annually to R&D until 2047 to drive meaningful development through science.

Challenges in Sustainable Funding for Research and Development (R&D)

Underutilization of Budget Allocations:

  • Departments like the Department of Biotechnology (DBT), Department of Science and Technology (DST), and Department of Scientific and Industrial Research (DSIR) consistently under-utilize their budget allocations.
  • In 2022-2023, DBT, DST, and DSIR used only 72%, 61%, and 69% of their estimated budget allocations, respectively.

Capacity Issues and Delays:

  • Insufficient capacity leads to delays in grant and salary disbursements, adversely affecting the progress of scientific research and development projects.

Broader Under-Spending Issue:

  • India’s overall under-spending on research and development exacerbates the impact of under-utilization, necessitating both increased funding and enhanced spending efficiency.

Uncertain Government Funding:

  • Government funding for science is uncertain, susceptible to changes in political priorities, economic conditions, and competing demands across sectors.
  • Non-prioritization of R&D funding within government budgets results in inadequate allocations compared to other sectors, reflecting a lack of recognition of its importance for national development and innovation.

Private Sector Hesitancy:

  • In 2020-2021, the private sector contributed 36.4% of Gross Expenditure on R&D (GERD), while the Union government’s share was 43.7%.
  • In economically developed countries, around 70% of R&D investment comes from the private sector.
  • Hesitancy in private-sector funding may stem from challenges in evaluating R&D in India, ambiguous regulatory roadmaps deterring investors, a lack of clear exit options in certain sectors, such as biotechnology, and concerns about intellectual property rights theft.

Strategies to Enhance R&D Spending in India

Scaling Investment for Development:

  • Recognize that sustained, substantial investment in science is crucial for progress. India needs to outspend developed countries in R&D to achieve ‘developed nation’ status.

Philanthropic Contributions:

  • Encourage wealthy individuals, corporations, and foundations to invest in R&D through philanthropy. Establish dedicated funds or grants for scientific research to attract donations from those committed to societal progress.

Academia-Industry Partnerships:

  • Facilitate collaborations between academia and industry to harness resources and expertise from both sectors.
  • Industry can provide funding, equipment, and real-world problems, while academic institutions offer scientific knowledge and talent. Government incentives or tax breaks can encourage such partnerships.

Private Investment Initiatives:

  • Encourage venture capital firms and angel investors to invest in R&D projects with high potential for commercialization.
  • Recognize the role of startups and small enterprises in driving innovation and provide them with the necessary private investment to scale their research efforts.

Implementation of National Research Foundation:

  • Expedite the implementation of initiatives like the Anusandhan National Research Foundation.
  • Ensure adequate funding and efficient utilization to support R&D activities and promote scientific advancements.

-Source: The Hindu


May 2024
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