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11OCTOBER 2016
INNOVATION AND PATENTS
For updated information, please visit www.ibef.orgOCTOBER 2016
22OCTOBER 2016 For updated information, please visit www.ibef.org
 Executive Summary………….…….………….3
 Advantage India……………...
33OCTOBER 2016 For updated information, please visit www.ibef.org
EXECUTIVE SUMMARY
Source: Reserve Bank of India, R&D Mag...
ADVANTAGE INDIA
INNOVATION AND PATENTS
55OCTOBER 2016
Growing demand
For updated information, please visit www.ibef.org
ADVANTAGE INDIA
Source: R&D spending esti...
MARKET OVERVIEW AND TRENDS
INNOVATION AND PATENTS
77OCTOBER 2016 For updated information, please visit www.ibef.org
EVOLUTION OF INNOVATION AND R&D IN INDIA
Source: Zinnov,...
88OCTOBER 2016 For updated information, please visit www.ibef.org
FORMS OF INTELLECTUAL PROPERTY
Source: Department of Ind...
99OCTOBER 2016
37
51
46
60
71
77
109
167
396
514
Brazil
Russia
United Kingdom
France
India
Souht Korea
Germany
Japan
China...
1010OCTOBER 2016
61.85
66.49
71.48
2014 2015E 2016F
For updated information, please visit www.ibef.org
INNOVATION AND PATE...
1111OCTOBER 2016
21
38
56
100
125
146
183
249
289
FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16
For updated information, pl...
1212OCTOBER 2016
80.15%
16.28%
3.55% 0.02%
Trade Mark
Patent
Design
Geographical
For updated information, please visit www...
1313OCTOBER 2016
28.94
35.22
36.81
34.29
39.40
43.20
43.67
42.95
42.76
5.52
6.40
6.56
6.09
7.59
8.37
8.34
8.53
9.33
137.91...
1414OCTOBER 2016
721
776
835
872
913 928
955
988
1033
1085
1139
2010 2011 2012 2013 2014 2015 2016E2017F2018F2019F2020F
Fo...
1515OCTOBER 2016 For updated information, please visit www.ibef.org
INNOVATION AND PATENTS
INDIA IS FAST EMERGING AS A GLO...
1616OCTOBER 2016
7.8
15
2015 2020
For updated information, please visit www.ibef.org
INDIA IS ALSO GARNERING THE BENEFITS ...
1717OCTOBER 2016 For updated information, please visit www.ibef.org
GLOBAL 500 COMPANIES PRESENCE IN INDIA
Source: Zinnov ...
1818OCTOBER 2016 For updated information, please visit www.ibef.org
Encouraging the private
sector
• The benefit of sectio...
1919OCTOBER 2016 For updated information, please visit www.ibef.orgSource: Intellectual Property India Annual Report 2014-...
2020OCTOBER 2016 For updated information, please visit www.ibef.org
INCREASING IN THE PATENT APPLICATION FILING (FY15)…..(...
2121OCTOBER 2016 For updated information, please visit www.ibef.org
KEY PLAYERS IN R&D - SCIENTIFIC AND R&D ORGANISATIONS1...
2222OCTOBER 2016
INNOVATION AND PATENTS
KEY PLAYERS IN R&D - SCIENTIFIC AND R&D ORGANISATIONS1 … (2/2)
Organisation Busine...
2323OCTOBER 2016 For updated information, please visit www.ibef.org
KEY PLAYERS IN R&D - INSTITUTES AND UNIVERSITIES1 … (1...
2424OCTOBER 2016 For updated information, please visit www.ibef.org
INNOVATION AND PATENTS
KEY PLAYERS IN R&D - INSTITUTES...
2525OCTOBER 2016 For updated information, please visit www.ibef.org
KEY PLAYERS IN R&D - PRIVATE SECTOR COMPANIES1
INNOVAT...
2626OCTOBER 2016 For updated information, please visit www.ibef.org
Source: Times of India, Economic Times, The Hindu, Def...
OCTOBER 2016
PORTERS FIVE FORCES ANALYSIS –
HEALTHCARE & BIOTECHNOLOGY
INNOVATION AND PATENTS
2828OCTOBER 2016 For updated information, please visit www.ibef.org
PORTERS FIVE FORCES ANALYSIS – HEALTHCARE
Source: Tech...
2929OCTOBER 2016 For updated information, please visit www.ibef.org
PORTERS FIVE FORCES ANALYSIS – BIOTECHNOLOGY
Source: T...
STRATEGIES ADOPTED –
HEALTHCARE & BIOTECHNOLOGY
INNOVATION AND PATENTS
3131OCTOBER 2016 For updated information, please visit www.ibef.org
STRATEGIES ADOPTED – HEALTHCARE
Source: Company websit...
3232OCTOBER 2016 For updated information, please visit www.ibef.org
STRATEGIES ADOPTED – BIOTECHNOLOGY
Source: Company web...
GROWTH DRIVERS
INNOVATION AND PATENTS
3434OCTOBER 2016 For updated information, please visit www.ibef.org
STRONG DEMAND AND POLICY SUPPORT DRIVING INVESTMENTS
S...
3535OCTOBER 2016 For updated information, please visit www.ibef.org
PHARMACEUTICAL SECTOR DRIVING R&D GROWTH
INNOVATION AN...
3636OCTOBER 2016 For updated information, please visit www.ibef.org
POLICY SUPPORT AIDING GROWTH IN THE SECTOR … (1/2)
INN...
3737OCTOBER 2016 For updated information, please visit www.ibef.org
INNOVATION AND PATENTS
POLICY SUPPORT AIDING GROWTH IN...
3838OCTOBER 2016 For updated information, please visit www.ibef.org
SCIENCE TECHNOLOGY AND INNOVATION (STI) POLICY 2013
So...
3939OCTOBER 2016 For updated information, please visit www.ibef.org
RECENT INVESTMENTS IN R&D BY KEY PLAYERS
INNOVATION AN...
4040OCTOBER 2016 For updated information, please visit www.ibef.org
INNOVATION AND PATENTS
RECENT INVESTMENTS IN R&D BY GO...
OPPORTUNITIES
INNOVATION AND PATENTS
4242OCTOBER 2016 For updated information, please visit www.ibef.org
Source: ARAI, Business Standard, India Law Office, Del...
4343OCTOBER 2016 For updated information, please visit www.ibef.org
Source: ARAI, Business Standard, Planning Commission,
...
4444OCTOBER 2016 For updated information, please visit www.ibef.org
Source: Zinnov - Crossing the value chasm
Notes G500 –...
4545OCTOBER 2016 For updated information, please visit www.ibef.org
INNOVATION AND PATENTS
India with more than 350 Compan...
SUCCESS STORIES
INNOVATION AND PATENTS
4747OCTOBER 2016
38
26
75
42
60
108
45
57
26
84
42
12
41
39
58
75
5
14
17
43
47
232
314
41
FY09 FY10 FY11 FY12 FY13 FY14 F...
4848OCTOBER 2016
822.5
1006.7
1250.9
1484.6
1742.1
1839.2
2090.2 2093.1
FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16
For update...
4949OCTOBER 2016 For updated information, please visit www.ibef.org
INFOSYS: NURTURING INNOVATION IN IT … (1/2)
INNOVATION...
5050OCTOBER 2016
6
6.3
8.2
10.4
11.6
13.6
15.7
16.6
1.1
1.5
2
2.2
2.6
3.2 3.3
3.7
0
0.5
1
1.5
2
2.5
3
3.5
4
0
2
4
6
8
10
1...
5151OCTOBER 2016
19
22
34.4
20.7
15.1
10.2 8.8
FY10 FY11 FY12 FY13 FY14 FY15 FY16
For updated information, please visit ww...
USEFUL INFORMATION
INNOVATION AND PATENTS
5353OCTOBER 2016
INDUSTRY ASSOCIATIONS
Automotive Research Association of India (ARAI)
Survey No 102, Vetal Hill, Off Paud...
5454OCTOBER 2016
GLOSSARY … (1/2)
API: Active Pharmaceutical Ingredient
ARAI: Automotive Research Association of India
CAG...
5555OCTOBER 2016
GLOSSARY … (2/2)
IAC: Indigenous Aircraft Carrier
ICBM: Intercontinental Ballistic Missile
IT: Informatio...
5656OCTOBER 2016
Year INR equivalent of one USD
2004–05 44.81
2005–06 44.14
2006–07 45.14
2007–08 40.27
2008–09 46.14
2009...
5757OCTOBER 2016
India Brand Equity Foundation (“IBEF”) engaged TechSci to prepare this presentation and the same has been...
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Innovation and Patents Sectore Report - October 2016

Innovation and Patents Sectore Report - October 2016

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Innovation and Patents Sectore Report - October 2016

  1. 1. 11OCTOBER 2016 INNOVATION AND PATENTS For updated information, please visit www.ibef.orgOCTOBER 2016
  2. 2. 22OCTOBER 2016 For updated information, please visit www.ibef.org  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 INNOVATION AND PATENTS OCTOBER 2016
  3. 3. 33OCTOBER 2016 For updated information, please visit www.ibef.org EXECUTIVE SUMMARY Source: Reserve Bank of India, R&D Magazine, International Monetary Fund, World Bank, CIA Fact Book, OECD, TechSci Research Note: R&D - Research and Development; Figures mentioned are as per latest data available INNOVATION AND PATENTS Sixth-largest R&D investor • In 2015, India’s R&D expenditure increased to USD66.49 million from USD61.85 billion in 2014. • In 2015, India became the world’s sixth largest annual R&D spending country, accounting for 3.53 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 • As per the latest World Intellectual Property Organization (WIPO) report, India’s position moved up from 85th to 61st in the Global Innovation Index (GII) Pharma sector driving R&D growth • India’s pharmaceutical industry, which accounts for about 1.4 per cent of the global pharmaceutical industry in value terms and 10 per cent in volume terms, is expected to remain a major R&D growth driver Rapidly growing overseas investment • Cumulative overseas direct investments by India grew at a CAGR of 38.78 per cent, during FY08-16, reaching USD289 billion during FY16 from USD21 billion in FY08, global car makers are also looking to move their R&D investments in India
  4. 4. ADVANTAGE INDIA INNOVATION AND PATENTS
  5. 5. 55OCTOBER 2016 Growing demand For updated information, please visit www.ibef.org ADVANTAGE INDIA Source: R&D spending estimate by Battelle and R&D Magazine, TechSci Research Notes: F - Forecast, E – Estimated, 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 Robust demand • Rising income and evolving lifestyles have led to higher demand for aspirational products • Indian companies’ investments in R&D is not surprising given the importance of innovation to sustain competitive edge • Indian players are set to benefit from expiration of patents Attractive opportunities • Vast opportunities in IT, pharmaceuticals, automobiles, biotechnology and agriculture • India is the largest exporter of IT products and has the third largest pharma sector with a fast growing contract research segment Policy support • PPP for promoting exchange of scientific knowledge and R&D • Strengthening educational infrastructure • Amendments to the Patents Act (1970) to make it TRIPS-compliant • Setting up of NIC in 2010 • Adoption of Science, Technology and Innovation Policy 2013 High ratings • Establishment of CoEs in various areas; NMITLI initiative on PPP basis • Increased investments by private players; setting up of R&D centers • During FY10–15, increase in Intellectual Property Rights (IPR) applications witnessed at a CAGR of 26.9 per cent, with the number increasing from 79,697 to 262,638 2015E R&D spending: USD66.49 billion 2016F R&D spending: USD71.48 billion Advantage India INNOVATION AND PATENTS
  6. 6. MARKET OVERVIEW AND TRENDS INNOVATION AND PATENTS
  7. 7. 77OCTOBER 2016 For updated information, please visit www.ibef.org EVOLUTION OF INNOVATION AND R&D IN INDIA 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 INNOVATION AND PATENTS • Indian Patents and Designs Act (1911) • Dependence on bulk imports • Establishment of CSIR, DRDO, ICAR, ISRO and IITs • Patents Act (1970) • Recognition of process patents only • Restricted foreign ownership in Indian companies • Focus on ‘reverse engineering’ among pharmaceutical companies • TRIPS under WTO (1995) • Amendments to the Patents Act (1970) to make it TRIPS compliant • Reintroduction of product patents • Reduction in tariff and non-tariff measures • Easing FDI norms • Shifting focus in pharma towards clinical research and new drug development Before 1970 Introductory Stage 1970 to early 1990s Indigenization Stage Early 1990s to 2005 Liberalization and Transition Era 2005 onwards Growth Era • Augmentation of network of centrally-funded institutions and universities • Increase in R&D and exports in sectors such as IT, pharma, electronics and automobiles • Innovations in automobiles such as Nano, the world’s least expensive car • Numerous innovations from rural India • Setting up of National Innovation Council • Adoption of Science, Technology and Innovation Policy 2013 • In FY15, 42,763 patents were filed in the country, of which 5,978 were granted • During April 2000 to March 2016, Cumulative FDI inflows in the sector reached USD288.63 billion
  8. 8. 88OCTOBER 2016 For updated information, please visit www.ibef.org FORMS OF INTELLECTUAL PROPERTY Source: Department of Industrial Policy and Promotion, TechSci Research INNOVATION AND PATENTS Intellectual Property (IP) Patents Trademarks Geographical Indications Industrial Designs Layout Designs Plant Variety Protection Copyright
  9. 9. 99OCTOBER 2016 37 51 46 60 71 77 109 167 396 514 Brazil Russia United Kingdom France India Souht Korea Germany Japan China United States For updated information, please visit www.ibef.org INDIA AMONG THE WORLD’S LEADING R&D INVESTORS INNOVATION AND PATENTS Source: Nature Magazine, Battelle, TechSci Research Notes: GERD - Gross Domestic Expenditure on R&D, R&D - Research and Development; 1 - Data is for May 2015; Expected expenditure of world’s leading R&D investors in 2016 (USD billion)It is expected to retain its sixth position in 2016, with R&D investments increasing to USD71.48 billion from USD66.49 billion in 2015 R&D investments has helped Indian companies to overcome tight competition with affordable products internationally Spending per Researchers1 (in thousands) 342 293 273 238 226 214 202 181 173 171 157 155 58 UnitedStates Germany Austria Italy Japan France SouthKorea Brazil China India Canada UK Pakistan
  10. 10. 1010OCTOBER 2016 61.85 66.49 71.48 2014 2015E 2016F For updated information, please visit www.ibef.org INNOVATION AND PATENTS Source: R&D Magazine, International Monetary Fund, World Bank, CIA Fact Book, OECD, Department of Science and Technology, TechSci Research Notes: CAGR - Compound Annual Growth Rate, PPP - Purchasing Power Parity, R&D – Research & Development, E – Expected, F – Forecast R&D spending in India (USD Billion)India’s share of global R&D spending rose to 3.53 per cent in 2015 from 3.43 per cent in 2014 and is forecast to be at 3.67 per cent in 2016 As of 2015, on the basis of investment in R&D, India is the sixth largest country across the globe and the fourth largest country in Asia. The country’s R&D investment growth is likely to outpace overall GDP growth by the end of 2018. In 2015, R&D investments in India was 0.9 per cent of GDP which would further increase and reach 2.4 per cent by 2034 In developed and emerging economies, the ratio of private and public sector investments in R&D is generally around 2:1. However, in India, as per recent estimates, private sector investments in R&D stand at just about half of that of the public sector, indicating huge potential for private players STRONG GROWTH IN R&D INVESTMENTS IN INDIA OVER THE YEARS
  11. 11. 1111OCTOBER 2016 21 38 56 100 125 146 183 249 289 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 For updated information, please visit www.ibef.org INDIA HAS BEEN EXPANDING ITS INVESTMENT HORIZON ABROAD INNOVATION AND PATENTS Source: Reserve Bank of India, Department Of Industrial Policy & Promotion (DIPP), TechSci Research Cumulative overseas direct investment (USD billion) Cumulative overseas direct investments increased to USD289 billion in FY16 from USD21 billion in FY08, leading to significant amount of technology transfer through industrial acquisitions For instance, Lupin’s total number of patent filing reached 2,525 in FY16 up from 600 in FY08. In FY16, the company filed 57 formulation patents, 75 API (Active Pharmaceutical Ingredient) and 33 in the field of biotech. Out of filed patents, in FY16, the company got approval for 22 formulation patents, 11 API (Active Pharmaceutical Ingredient) patents and 41 NCE (New Chemical Entity) patents. In FY16, the company invested around USD244 million for R&D.
  12. 12. 1212OCTOBER 2016 80.15% 16.28% 3.55% 0.02% Trade Mark Patent Design Geographical For updated information, please visit www.ibef.org TRADEMARK APPLICATION ACCOUNT FOR MAJOR SHARE OF IPR APPLICATIONS INNOVATION AND PATENTS Source: Department of Industrial Policy and Promotion, Intellectual Property India Annual Report 2014-15, TechSci Research Note: Figures mentioned are as per latest data available Break-up of Intellectual Property Rights (IPR) applications (FY15) During FY15, the total number of Intellectual Property Rights (IPR) stood at 262,638 Trademark applications accounted for the largest share of 80.15 per cent, with the total number of applications standing at 210,501 in FY15 Patent and design applications accounted for 16.28 per cent (42,763 applications) and 3.55 per cent (9,327) share, respectively
  13. 13. 1313OCTOBER 2016 28.94 35.22 36.81 34.29 39.40 43.20 43.67 42.95 42.76 5.52 6.40 6.56 6.09 7.59 8.37 8.34 8.53 9.33 137.91 165.17 173.59 141.94 179.32 183.59 194.22 200.01 210.50 0 50 100 150 200 250 300 0 50 100 150 200 250 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 Patent (LHS) Design (LHS) Trade mark (LHS) Total (RHS) For updated information, please visit www.ibef.org IPR APPLICATIONS TRENDING NORTH Source: Department of Industrial Policy and Promotion, Intellectual Property India Annual Report 2014-15, TechSci Research Note: Figures mentioned are as per latest data available Intellectual Property (IP) applications (‘000) During FY07–15, increase in Intellectual Property Rights (IPR) applications was witnessed at a CAGR of 5.4 per cent, with the number of applications increasing from 172,374 in FY07 to 262,590 in FY15. During FY07-15, the total number of trademark applications increased at a CAGR of 5.4 per cent and reached to 210,501 by the end of FY15 Patent and design applications rose at a CAGR of 5 per cent and 6.8 per cent respectively, during the same period Growing IP application activity indicates increased in-house R&D and innovation in India INNOVATION AND PATENTS
  14. 14. 1414OCTOBER 2016 721 776 835 872 913 928 955 988 1033 1085 1139 2010 2011 2012 2013 2014 2015 2016E2017F2018F2019F2020F For updated information, please visit www.ibef.org INDIA IS FAST EMERGING AS A GLOBAL R&D HUB … (1/2) Source: Zinnov Consulting - Crossing the value chasm, TechSci Research Notes: CAGR - Compound Annual Growth Rate, MNC – Multinational Corporations R&D - Research and Development, E – Estimate, F – Forecast MNC R&D centers in IndiaThe number of MNC R&D centers in India has grown at a CAGR of 5.2 per cent from 721 in 2010 to 928 in 2015, with the total number of MNC R&D centers estimated to reach 955 by the end of 2016 During 2010-15, the workforce in MNC R&D centers increased at a CAGR of 9.63 per cent and reached 323,000, which is estimated to further increase to 353,000 by 2016 in India. INNOVATION AND PATENTS CAGR: 4.7% 204 220 244 268 295 323 353 387 424 464 508 2010 2011 2012 2013 2014 2015 2016E2017F2018F2019F2020F MNC R&D centers workforce in India (in 000’) CAGR: 9.6%
  15. 15. 1515OCTOBER 2016 For updated information, please visit www.ibef.org INNOVATION AND PATENTS INDIA IS FAST EMERGING AS A GLOBAL R&D HUB … (2/2) Source: Zinnov Consulting Report 2015, TechSci Research Notes: CAGR - Compound Annual Growth Rate, R&D - Research and Development YoY- Year on Year Vertical-wise distribution of R&D centers in India (2015) Until 2005, Tier-1 cities were the favourite destination for MNCs due to availability of rich talent, favorable policies, and better quality of life However, post-2005, MNCs have started expanding to Tier- 2 cities, as they offer benefits such as higher catchment area, lower attrition and cost arbitrage R&D related investments and processes attain easier approval from regulatory authorities, globally. This has also increased focus on new generics India’s R&D ecosystem has grown at a phenomenal pace in the last ten years. 42% of the Global 500 R&D Spenders have centers in India, with the figure expected to reach 49% by 2020 As of 2015, 928 MNCs, with a total of 1165 R&D centers were operating within the country. Bangalore and Pune accounted for the highest concentration of R&D Talent, with around 96% of MNCs housed in Tier-1 cities. 13 62 7 39 11 90 18 21 22 57 9 20 4 25 68 302 76 4 0 50 100 150 200 250 300 350 Aerospace & Defence Automotive Biotechnology Chemicals & Materials Diversified Electrical & Electronics Energy Engineering Services FMCG Industrial Media & Entertainment Medical Devices Others Pharmaceuticals Semiconductors Software/ Internet Telecom & Networking Travel & Transportation
  16. 16. 1616OCTOBER 2016 7.8 15 2015 2020 For updated information, please visit www.ibef.org INDIA IS ALSO GARNERING THE BENEFITS OF R&D OUTSOURCING 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 Engineering R&D outsourcing in India (USD Billion) Companies across sectors (such as IT, consumer electronics, personal devices, medical electronics, telecom and automobiles) are now offshoring complete product responsibility India has become one of the most preferred location for engineering offshoring 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 The outsourcing R&D services market in India is expected to reach USD38 billion by 2020 from USD20 billion in 2015. Newer capabilities such as supply chain, regulatory compliances and manufacturing engineering are being developed by Engineering R&D Service providers Service providers in Europe are increasingly looking at scaling up and setting offshore operations in India to access cost effective large talent pool INNOVATION AND PATENTS CAGR: 14%
  17. 17. 1717OCTOBER 2016 For updated information, please visit www.ibef.org GLOBAL 500 COMPANIES PRESENCE IN INDIA Source: Zinnov – Crossing the value chasm, TechSci Research Notes: R&D - Research and Development 1 – Data is up to Dec 2015, 2 – Data is up to September 2015, 3 - Data is for FY15 Number of R&D centers for global 500 companies, 2014 The top 500 R&D spenders contribute over USD614 billion 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 anywhere between USD58-325 billion on R&D, which represented an increase both in absolute term as well as in proportion to net revenues (8-11 per cent of sales) More than one-third of the top 1,000 global R&D spenders have centres in India. Around 50 per cent of the global 500 companies present have more than 10 per cent of the global headcount in India During 2015, 40 per cent of the overall R&D globalisation, valuing USD12.3 billion was based out of India. 69 per cent of the new offshore technology centres are being setup in the country INNOVATION AND PATENTS 46 83 52 45 28 20 4 17 48 55 72 80 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) 352 272.44 244 158.16 104.03 102 71.79 Sun Pharma Dr Reddy Lupin Cipla Cadila Wockhardt Aurobindo
  18. 18. 1818OCTOBER 2016 For updated information, please visit www.ibef.org Encouraging the private sector • The benefit of section 10 (23 G) of the IT Act has been extended to financial institutions that provide long-term capital to hospitals with 100 beds or more • Government is encouraging the PPP model to improve availability of healthcare services and provide healthcare financing Encouraging investments in rural areas • The benefit of section 80-IB has been extended to new hospitals with 100 beds or more that are set up in rural areas; such hospitals are entitled to 100 per cent deduction on profits for five years • Under Union Budget 2016-17, government allocated USD130 million to encourage farmers to opt for allied activities • In Union Budget 2016-17, the government, under the Accelerated Irrigation Benefit Programme (AIBP), would ensure to complete 23 irrigation projects before March 2017 Source: Union Budget 2014-15, Union Budget 2015-16, Union Budget 2016-17, Health Ministry, TechSci Research STRONG POLICY SUPPORT CRUCIAL IN DEVELOPING THE SECTOR INNOVATION AND PATENTS Tax incentives • As per Union Budget 2015-16, custom duty on life-saving equipment has been reduced to 5 per cent from 25 per cent and have been exempted from the purview of countervailing duty • Import duty on medical equipment has been reduced to 7.5 per cent • As per Union Budget 2016-17, services provided by National Centre for Cold Chain Development (NCCD) would be exempted from service tax Incentives in the medical travel industry • Incentives and tax holidays are being offered to hospitals and dispensaries providing health travel facilities
  19. 19. 1919OCTOBER 2016 For updated information, please visit www.ibef.orgSource: Intellectual Property India Annual Report 2014-15 Note: Figures mentioned are as per latest data available INNOVATION AND PATENTS Top 5 Indian Applicants for patents in the field of Information Technology S.No. Name of the Company Application Filled 1 Samsung R&D Institute India- Bangalore Private Limited 233 2 Tata Consultancy Services Limited 147 3 Wipro Limited 117 4 Hindustan Aeronautics Limited 57 5 Indian Institute of Technology (Collective) 50 Top 5 Indian Applicants For Patents from Science and Research & Development Organizations S.No. Name of the Company Application Filled 1 Council of Science & Industrial Research 315 2 Director General, Defence Research & Development Organization 98 3 Indian Council of Agricultural Research 68 4 G,H.R. Labs and Research Centre 31 5 Department of Biotechnology 23 Top 5 Indian Applicants for patents from Institutes and Universities S.No. Name of the Company Application Filled 1 Indian Institute of Technology (Collective) 337 2 Janardan Rai Nagar Rajasthan Vidyapeeth (Deemed) University 53 3 Indian Institute of Science 46 4 Amity University 43 5 Sandeep Foundation’s Sandip Institute of Technology & Research Centre 33 Top 5 Foreign Applicants S.No. Name of the Company Application Filled 1 Qualcomm incorporated 1214 2 Koninklijke Philips N.V. 805 3 Telefonaktiebolaget LM Ericsson (PUBL) 449 4 Samsung Electronics Co. Ltd 379 5 BASF SE 297 INCREASING IN THE PATENT APPLICATION FILING (FY15)…..(1/2)
  20. 20. 2020OCTOBER 2016 For updated information, please visit www.ibef.org INCREASING IN THE PATENT APPLICATION FILING (FY15)…..(2/2) INNOVATION AND PATENTS Top 5 Indian Patentees S.No. Name of the Company Application Filled 1 Council of Scientific & Industrial Research 66 2 Bharat Heavy Electricals Limited 56 3 Samsung R&D Institute India Bangalore Private Limited 56 4 Indian Institute of Technology (Collective) 30 5 Tata Motors Limited 26 Top 5 Foreign Resident Patentees S.No. Name of the Company Application Filled 1 GM Global Technology Operations Inc. 267 2 Qualcomm Incorporated 205 3 Telefonaktiebolaget LM Ericsson (PUBL) 94 4 LG Electronics Inc. 87 5 Koninklijke Philips Electronics N.V. 61 Source: Intellectual Property India Annual Report 2014-15 Note: Figures mentioned are as per latest data available
  21. 21. 2121OCTOBER 2016 For updated information, please visit www.ibef.org KEY PLAYERS IN R&D - SCIENTIFIC AND R&D ORGANISATIONS1 … (1/2) Source: Organisational websites, IP India, TechSci Research Notes: R&D - Research and Development; IP – Intellectual Property, 1 - This list is indicative INNOVATION AND PATENTS 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 was the only Indian organisation among the top 100 global institutions in 2014. CSIR filed 315 patent application in FY15. 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 filed 98 patent application in FY15. • Its research areas include aeronautics, armaments, combat vehicles, electronics, instrumentation engineering systems, missiles, materials, naval systems, advanced computing, simulation and life sciences. In June 2015, DRDO’s 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 filed 68 patent application in FY15 • It is the apex body for coordinating, guiding and managing research and education in agriculture, including horticulture, fisheries and animal sciences in India.
  22. 22. 2222OCTOBER 2016 INNOVATION AND PATENTS KEY PLAYERS IN R&D - SCIENTIFIC AND R&D ORGANISATIONS1 … (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 2 . In FY5, ISRO filed 13 patent application • The organisation has 19 centers across India to pursue R&D activities and ISRO currently has a constellation of 9 communication satellites, 1 meteorological 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 22, 2016, ISROs Polar Satellite Launch Vehicle, PSLV-C34, successfully launched 20 satellites in a single flight 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 filed 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 • C-DAC filed 20 patent applications in FY15 Source: Organisational websites, TechSci Research Notes: R&D - Research and Development, 1 - This list is indicative, 2 - as on 24 September 2014 For updated information, please visit www.ibef.org
  23. 23. 2323OCTOBER 2016 For updated information, please visit www.ibef.org KEY PLAYERS IN R&D - INSTITUTES AND UNIVERSITIES1 … (1/2) INNOVATION AND PATENTS 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 FY15, IITs filed 337 patent application. 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. In FY16 NDRI filed 4 patents. 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 • The number of filed patents increased to 46 during FY15. Source: Organisational websites, IP India, TechSci Research Notes: R&D - Research and Development, IP - Intellectual Property,1 - This list is indicative
  24. 24. 2424OCTOBER 2016 For updated information, please visit www.ibef.org INNOVATION AND PATENTS KEY PLAYERS IN R&D - INSTITUTES AND UNIVERSITIES1 … (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. • On 3 rd December, 2015 TERI reveals the ‘Corporate Vision on Climate Change’ at 21 st Conference of the Parties (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, 1 - This list is indicative
  25. 25. 2525OCTOBER 2016 For updated information, please visit www.ibef.org KEY PLAYERS IN R&D - PRIVATE SECTOR COMPANIES1 INNOVATION AND PATENTS 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 USD6.05 million in FY16, where the total revenue expenditure is USD5.67 million and USD0.38 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 USD16.65 million till FY16. • The total patents filed was 71 and 32 patents were granted as on FY16. 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 and reached USD158.16 million in FY16 • In 2015, Cipla filed more than 200 formulation development projects underway. Company filed 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, 1 - This list is indicative
  26. 26. 2626OCTOBER 2016 For updated information, please visit www.ibef.org 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, LCA – Light Combat Aircraft INNOVATION HAS BEEN A CORNERSTONE OF THE COUNTRY’S DEFENCE SECTOR INNOVATION AND PATENTS INS Vikrant • India Indigenous Aircraft Carrier (IAC) • Total displacement of over 40,000 tonnes • Being built by Cochin Shipyard Limited • Expected to be Commissioned in 2017 Agni-V missile • Successfully test fired in April 2012 • India joined an elite group of nations having ICBM technology • Indigenously developed by DRDO • To be inducted by 2016 after few more trials Arihant Class Submarines • With its launch in 2009, India joined an elite group of nations having nuclear-powered submarines • Developed by HSL Tejas • Second supersonic aircraft to be developed indigenously by Hindustan Aeronautics Limited (HAL) • In July 2016, LCA Tejas aircraft was inducted into the Indian Air Force
  27. 27. OCTOBER 2016 PORTERS FIVE FORCES ANALYSIS – HEALTHCARE & BIOTECHNOLOGY INNOVATION AND PATENTS
  28. 28. 2828OCTOBER 2016 For updated information, please visit www.ibef.org PORTERS FIVE FORCES ANALYSIS – HEALTHCARE Source: TechSci Research Note: R&D – Research and Development INNOVATION AND PATENTS 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 generic drug manufacturers Threat of New Entrants Substitute Products Bargaining Power of Suppliers Bargaining Power of Customers • Huge R&D expenditure requirement reduces threat of new entrant • Government regulation is strict for this industry • Bargaining power of suppliers in this industry is high because quality of products and timely delivery matter and there is less number of quality suppliers in this industry • Bargaining power of customers is low due to undifferentiated products • Cheaper generic formulations pose a threat to healthcare companies Competitive Rivalry (High) Threat of New Entrants (Low) Threat of Substitute Products (Low) Bargaining Power of Customers (Low) Bargaining Power of Suppliers (High)
  29. 29. 2929OCTOBER 2016 For updated information, please visit www.ibef.org PORTERS FIVE FORCES ANALYSIS – BIOTECHNOLOGY Source: TechSci Research Note: R&D – Research and Development INNOVATION AND PATENTS 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. However, given the low success rate, rivalry is low Threat of New Entrants Substitute Products Bargaining Power of Suppliers Bargaining Power of Customers • Capital intensive nature of industry reduces the threat of new entrants • Strict government regulation • Suppliers’ power is low because the raw materials are largely undifferentiated • Individual buyers do not have influence on pricing • However, government price control enhances buyer’s power • Patent protection stops the threat of alternative drugs and chemicals for a period of time Competitive Rivalry (Moderate) Threat of New Entrants (Low) Substitute Products (Low) Bargaining Power of Customers (Low-Moderate) Bargaining Power of Suppliers (Low)
  30. 30. STRATEGIES ADOPTED – HEALTHCARE & BIOTECHNOLOGY INNOVATION AND PATENTS
  31. 31. 3131OCTOBER 2016 For updated information, please visit www.ibef.org STRATEGIES ADOPTED – HEALTHCARE Source: Company website, TechSci Research Note: R&D – Research and Development • 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 • 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 • 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 2016, Novartis opened a major R&D center in Shanghai, China worth USD1 billion • Sun Pharma is focusing on specialty and chronic therapies such as neurology, oncology, dermatology, rather than competing in anti infective and gastrointestinal therapies 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 Cost leadership Differentiation Focus INNOVATION AND PATENTS
  32. 32. 3232OCTOBER 2016 For updated information, please visit www.ibef.org STRATEGIES ADOPTED – BIOTECHNOLOGY Source: Company website, TechSci Research Notes: R&D – Research and Development • 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 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, 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 other manufacturer. For example, until March 2016, Panacea filed over 1,500 patent applications, including 230 in India Cost leadership Differentiation Creating barriers INNOVATION AND PATENTS
  33. 33. GROWTH DRIVERS INNOVATION AND PATENTS
  34. 34. 3434OCTOBER 2016 For updated information, please visit www.ibef.org STRONG DEMAND AND POLICY SUPPORT DRIVING INVESTMENTS 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 INNOVATION AND PATENTS Policy support PPP in R&D Strengthening educational infrastructure Amendments to the Patents Act & Setting up of NIC Inviting Resulting in Growing demand Evolving consumer lifestyles Liberalisation and increasing competition Proximity to future growth markets Increasing investments Establishment of CoEs, NMITLI initiative Providing support to global projects from India Increasing corporate R&D investments
  35. 35. 3535OCTOBER 2016 For updated information, please visit www.ibef.org PHARMACEUTICAL SECTOR DRIVING R&D GROWTH INNOVATION AND PATENTS Source: TechSci Research R&D spending by top six Pharma giants in FY16 (USD million) India’s pharmaceutical market is highly fragmented, with 300 large and 18,000 mid-sized and small companies 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 Indian healthcare sector, one of the fastest growing industry, is expected to advance at a CAGR of 17 per cent during 2011–20 to reach USD280 billion This would help drive R&D growth in India; the average R&D expenditure by Indian pharma companies is close to 6 per cent of total revenues 352 272.44 244 158.16 104.03 102 71.79 Sun Pharma Dr Reddy Lupin Cipla Cadila Wockhardt Aurobindo
  36. 36. 3636OCTOBER 2016 For updated information, please visit www.ibef.org POLICY SUPPORT AIDING GROWTH IN THE SECTOR … (1/2) INNOVATION AND PATENTS PPP in R&D • 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 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 Funded institutions and foreign universities • 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 Karnataka and Dhanbad • Foreign universities permitted to enter the higher education system in India by establishing 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 Science & Technology • In Union Budget 2016-17, Government of India has announced its plans to make 10 public and 10 private institutions as world class teaching & research institutes • In Union Budget 2016-17, Government has allotted USD260 million for establishing 1500 multi-skill development centers Source: Battelle, Electronics for You, Union Budget 2015-16, Organisational websites, TechSci Research Note: PPP - Public Private Partnership
  37. 37. 3737OCTOBER 2016 For updated information, please visit www.ibef.org INNOVATION AND PATENTS POLICY SUPPORT AIDING GROWTH IN THE SECTOR … (2/2) National Innovation Council (NIC) • 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 governments, universities, R&D institutions and SMEs • 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 Atal Innovation Mission • 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 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 Patents (Amendment) Rules, 2016 • The time limit for filing response to First Examination Report (FER) has been reduced to 6 months. • With a maximum of two adjournments hearings can now be conducted through video conferencing as well as audio visual communication devices. • Maximum fees for sequence listings would be USD1850, wherein, cost per page would be almost USD12.
  38. 38. 3838OCTOBER 2016 For updated information, please visit www.ibef.org SCIENCE TECHNOLOGY AND INNOVATION (STI) POLICY 2013 Source: TechSci Research INNOVATION AND PATENTS Introduction of STI Policy 2013 • 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 held at Kolkata Vision of STI Policy • The STI policy is aimed at helping India become one of the top five global scientific powers by 2020, by taking advantage of large demographic pool of engineers and science graduates Rising involvement of the private sector • 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 Development (R&D) to 2 per cent of GDP by 2017 from current 1 per cent Increase in human resources • The policy seeks to increase the number of full-time R&D personnel by 66 per cent over 2013–17 and expand the number of publications from the current 3.5 per cent of global share to around 7 per cent by 2020
  39. 39. 3939OCTOBER 2016 For updated information, please visit www.ibef.org RECENT INVESTMENTS IN R&D BY KEY PLAYERS INNOVATION AND PATENTS Source: India Electronic News, Moneycontrol, CNBC, Economic Times, Appliancemagazine.com, Business Standard, The Hindu, Company websites, TechSci Research Note: R&D - Research and Development 2013 • Jan 13: DuPont has double their R&D activities in India • April 13: Yamaha announced the establishment of a R&D centre in India • Jun 13: Huawei has set up a new Research and Development (R&D) centre in Bengaluru with an investment of USD150 million • Jul 13: OneOcean Corporation has set up ClipCard Technology (R&D) centre in India • Oct 13: Carraro India has set up a new R&D centre in India • Jan 22: Intel India to invest over USD120 million to expand its Bengaluru R&D center • Mar 07: BASF opens global R&D center in Mumbai • Sep 10: Valvoline Communications Ltd (VCL) a JV between Ashland Inc and Cummins India Ltd will open its R&D centers in Ambernath near Mumbai in Maharashtra 20142015 • August 2015: Foxconn announced to invest USD5 billion in India over next five years to set up R&D centers and manufacturing plants • May 2015: Ford Motor company have announced to invest around USD829.46 million in R & D center Chennai • July 2015: Lupin, has decided to invest USD185.63 million in the pharma sector. 2016 • May 2016: Royal Enfield announced its plans to invest USD91.7 million in setting up 2 new R&D centers, one of which would be setup in Chennai, in FY17 • Mar 2016: Daikin, under Make in India initiative, is planning to invest around USD91 billion to establish R&D centre and a manufacturing unit in Rajasthan • Feb 2016 - Ferring Holding SA, Switzerland-based pharma research company, planned to set a R&D centre in Hyderabad worth USD250 million
  40. 40. 4040OCTOBER 2016 For updated information, please visit www.ibef.org INNOVATION AND PATENTS RECENT INVESTMENTS IN R&D BY GOVERNMENT 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 Centers of Excellence (CoEs) • In 2015, National Association of Software and Services Companies (NASSCOM), Department of Electronics & Information Technology (DeitY) and Education and Research Network (ERNET) jointly has formed Center of Excellence with the seed funding done by government. • COEs are generally run on PPP model • CoEs have been set up in the areas of telecom, wireless technology, bio- informatics, lasers and optoelectronic devices and nano-electronics NMITLI • The programme identifies areas for development based on national consultation and invites best partners from institutions, academia and private sector to play a role in the process • NMITLI have received a budgetary allocation of USD4.91 million under the Union Budget 2015-16. It has initiated 60 largely networked projects in diverse areas involving 85 industry partners and 280 R&D groups from different institutions with investment outlay of USD114 million Centrally funded institutes Central and foreign universities • New universities in 16 uncovered states • The remaining 14 new Central Universities will be set up as world class centers of excellence at different locations • Foreign universities can enter higher education system in India by having their own campuses or joint ventures with existing universities • 12 teacher education courses and three new programmes have been upgraded • In Union Budget 2015-16, Government of India has announced to set 5 new AIMS, 2 new IITs and 2 IIMs • These institutes together account for over 80 per cent of the total PhDs in engineering in India • The institutes are also amongst the top Indian applicants for patents from the ‘institutes and universities’ category • In Union Budget 2016-17, government has announced to make 10 public and 10 private institutions as world class institutes
  41. 41. OPPORTUNITIES INNOVATION AND PATENTS
  42. 42. 4242OCTOBER 2016 For updated information, please visit www.ibef.org 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, ANDA – Abbreviated New Drug Application, US FDA – United States Food and Drug Administration INNOVATION AND PATENTS Pharma and healthcare • 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 • 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 • The number of ANDA approvals granted by US FDA increased from 109 in FY15 to 201 in FY16 to the Indian companies Information Technology (IT) • India is seen as a product development destination • Companies are offshoring their product responsibilities including complex services like product management Automobiles • Research is being carried out by individual companies as well as industry associations 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 OPPORTUNITIES (1/2)
  43. 43. 4343OCTOBER 2016 For updated information, please visit www.ibef.org 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 INNOVATION AND PATENTS Biotechnology • 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 areas for investment • Stem cell research, cell engineering and cell-based therapeutics are other areas, wherein India will cash in its expertise Agriculture • 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 • 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 • In Union Budget FY17, the government, under the Accelerated Irrigation Benefit Programme (AIBP), would ensure to complete 23 irrigation projects, before March 2017 OPPORTUNITIES(2/2)
  44. 44. 4444OCTOBER 2016 For updated information, please visit www.ibef.org Source: Zinnov - Crossing the value chasm Notes G500 – Global 500 companies INNOVATION AND PATENTS OPPORTUNITIES OF JOB CREATION BY GLOBAL 500 COMPANIES There is a potential to create 200,000 R&D jobs by global 500 companies in the next five years During 2013-18, R&D headcount is expected to increase at a CAGR of 15.8 per cent Around 50 per cent of the global 500 companies present have more than 10 per cent of the global headcount in India Talent pool for R&D in the country is expected to grow at a CAGR of 10.9% from present 0.6 million to 1 million by 2020. 928 MNCs and 1165 R&D centers together employ 55 per cent of Indias total R&D installed talent base. The workforce is expected to increase to 0.52 million by 2020 Software/Internet domain account for over 37% of the total MNC R&D installed workforce 176 366 313 229 489 595 2013 2018 R&D headcount Remaining addressable population R&D headcount by G500 (‘000) R&D Talent Distribution 6,10,000 10,20,000 2015 2020 CAGR: 11%
  45. 45. 4545OCTOBER 2016 For updated information, please visit www.ibef.org INNOVATION AND PATENTS India with more than 350 Companies and more than 250 R & D centers from G500 Chandigarh Emerging Locations NCR Tier 1 locations Ahmedabad Vadodara Kolkata Vishakhapatnam Coimbatore Mangalore Goa Nashik Hyderabad Bangalore Chennai Pune Mumbai125 62 45 43 38 26 24 0 20 40 60 80 100 120 140 Bangalore NCR Pune Hydrabad Chennai Mumbai Others Source: Zinnov - Crossing the value chasm, News Articles, TechSci Research Notes G500 – Global 500 companies G500 presence across locations in India (Till December, 2013)
  46. 46. SUCCESS STORIES INNOVATION AND PATENTS
  47. 47. 4747OCTOBER 2016 38 26 75 42 60 108 45 57 26 84 42 12 41 39 58 75 5 14 17 43 47 232 314 41 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 Formulation Patents API/Process Patents NCE Patents For updated information, please visit www.ibef.org 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 Patents filed by LupinLupin is a renowned pharma player having a wide range of quality, affordable generic and branded formulations and APIs Lupin has emerged as the fifth largest and among the top five fastest-growing companies in the US It is one of the world’s largest manufacturers of TB drugs and has significant market share in the cardiovascular, diabetology, asthma, paediatrics, CNS, Anti-infectives and NSAIDs therapy segments By FY16, Lupin’s total patent filing reached 2,525 up from 600 in FY08 The company is amongst the fastest growing in top 10 generic pharmaceutical players in Japan and South Africa INNOVATION AND PATENTS LUPIN: ON A HIGH GROWTH PATH … (1/2)
  48. 48. 4848OCTOBER 2016 822.5 1006.7 1250.9 1484.6 1742.1 1839.2 2090.2 2093.1 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 For updated information, please visit www.ibef.org INNOVATION AND PATENTS LUPIN: ON A HIGH GROWTH PATH … (2/2) Source: Lupin website Notes: CAGR - Compound Annual Growth Rate Lupin net sales (USD million)Its revenues increased from USD822.5 million in FY09 to USD2.09 billion in FY16, at a CAGR of 14.3 per cent Lupin’s domestic formulations business grew by 6.6 per cent recording revenues of USD518.1 million for FY16 in comparison with USD486.1 million for FY15 CAGR: 14.3%
  49. 49. 4949OCTOBER 2016 For updated information, please visit www.ibef.org INFOSYS: NURTURING INNOVATION IN IT … (1/2) INNOVATION AND PATENTS Indian IT patent applications ( FY15)Infosys has 3rd highest number of patents applications in India Research activity for different areas is allocated amongst dedicated labs such as Software Engineering lab, Convergence lab, Security and Privacy lab, Distributed Computing lab and E-Com lab During FY11-16, the company’s revenues increased at a CAGR of 9.6 per cent to USD9.5 billion in FY16 from USD6.0 billion in FY11 During the same period, net profit expanded at a CAGR of 6.4 per cent to USD2.05 billion in FY16 from USD1.5 billion in FY11 Infosys spent USD58.7 million in R&D expenses during FY16 Source: Office of the Controller General of Patents, Designs and Trademarks Annual Report, Intellectual Property India Annual Report 2014-15, Company Annual Reports, TechSci Research Income and net profit (USD billion) 6 6.9 7.4 8.2 8.7 9.5 1.5 1.7 1.7 1.8 2 2.05 0 0.5 1 1.5 2 2.5 0 2 4 6 8 10 FY11 FY12 FY13 FY14 FY15 FY16 Sales Net Profit 50 57 117 147 233 Indian Institute of Technology (Collective) Hindustan Aeronautics Limited Wipro Limited Tata Consultancy Services Limited Samsung R&D Institute India- Bangalore Private Limited
  50. 50. 5050OCTOBER 2016 6 6.3 8.2 10.4 11.6 13.6 15.7 16.6 1.1 1.5 2 2.2 2.6 3.2 3.3 3.7 0 0.5 1 1.5 2 2.5 3 3.5 4 0 2 4 6 8 10 12 14 16 18 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 Sales Net Profit For updated information, please visit www.ibef.org INNOVATION AND PATENTS TCS: NURTURING INNOVATION IN IT… (2/2) Source: Company Annual Reports, TechSci Research: Note: CAGR - Compound Annual Growth Rate Sales and net profit (USD billion)During FY09–16, the company’s revenues increased at a CAGR of 15.6 per cent, reaching USD16.6 billion in FY16 from USD6 billion in FY09 During the same period, net profit expanded at a CAGR of 18.9 per cent to USD3.7 billion from USD1.1 billion TCS spent USD171.3 million in R&D and innovation expenses during FY16, out of which total sum spent on R&D was USD36.2 million in the same year
  51. 51. 5151OCTOBER 2016 19 22 34.4 20.7 15.1 10.2 8.8 FY10 FY11 FY12 FY13 FY14 FY15 FY16 For updated information, please visit www.ibef.org HUL: A LEADING INNOVATOR IN FMCG INNOVATION AND PATENTS Source: Economic Times, Company Annual Reports, Company website, TechSci Research Notes: CAGR: Compound Annual Growth Rate, 20161 – Data as on August 2016 Strong research and development (USD million)Incorporated in 1933, HUL is India’s leading company by 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 has won the top FMCG award at the Dun & Bradstreet Corporate Awards 2015 Hindustan Unilever Limited (HUL) has been ranked No 31 in India on the Forbes list of Most Innovative Companies across the globe for 20161. The company has over 20,000 registered patents and patent applications worldwide HUL is also driving innovation in various categories such as oral care, personal products and soaps & detergents etc. CAGR: 2.89%
  52. 52. USEFUL INFORMATION INNOVATION AND PATENTS
  53. 53. 5353OCTOBER 2016 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: info@araiindia.com 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: info@iscr.org 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: sitraindia@dataone.in Website: www.sitra.org.in For updated information, please visit www.ibef.org INNOVATION AND PATENTS
  54. 54. 5454OCTOBER 2016 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 For updated information, please visit www.ibef.org INNOVATION AND PATENTS
  55. 55. 5555OCTOBER 2016 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 For updated information, please visit www.ibef.org INNOVATION AND PATENTS
  56. 56. 5656OCTOBER 2016 Year INR equivalent of one USD 2004–05 44.81 2005–06 44.14 2006–07 45.14 2007–08 40.27 2008–09 46.14 2009–10 47.42 2010–11 45.62 2011–12 46.88 2012–13 54.31 2013–14 60.28 2014-15 61.06 2015-16 65.46 2016-17 (E) 66.95 Year INR equivalent of one USD 2005 43.98 2006 45.18 2007 41.34 2008 43.62 2009 48.42 2010 45.72 2011 46.85 2012 53.46 2013 58.44 2014 61.03 2015 64.15 2016 (Expected) 67.22 Exchange rates (Fiscal Year) For updated information, please visit www.ibef.org EXCHANGE RATES Exchange rates (Calendar Year) Source: Reserve bank of India, Average for the year INNOVATION AND PATENTS
  57. 57. 5757OCTOBER 2016 India Brand Equity Foundation (“IBEF”) engaged TechSci to prepare this presentation and the same has been prepared by TechSci in consultation with IBEF. All rights reserved. All copyright in this presentation and related works is solely and exclusively owned by IBEF. The same may not be reproduced, wholly or in part in any material form (including photocopying or storing it in any medium by electronic means and whether or not transiently or incidentally to some other use of this presentation), modified or in any manner communicated to any third party except with the written approval of IBEF. This presentation is for information purposes only. While due care has been taken during the compilation of this presentation to ensure that the information is accurate to the best of TechSci and IBEF’s knowledge and belief, the content is not to be construed in any manner whatsoever as a substitute for professional advice. TechSci and IBEF neither recommend nor endorse any specific products or services that may have been mentioned in this presentation and nor do they assume any liability or responsibility for the outcome of decisions taken as a result of any reliance placed on this presentation. Neither TechSci nor IBEF shall be liable for any direct or indirect damages that may arise due to any act or omission on the part of the user due to any reliance placed or guidance taken from any portion of this presentation. For updated information, please visit www.ibef.org DISCLAIMER INNOVATION AND PATENTS

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