As noted in a recent speech by Infosys co-founder N R Narayana Murthy, “Is there one invention from India that has become a household name in the globe? Is there one technology that has transformed the productivity of global corporations? Is there is one idea that has led to an earth-shaking invention to delight global citizens? Folks, the reality is that there is no such contribution from India in the last sixty years.”
If India adopted more robust IP protections, greater R&D and innovation would follow, by both foreign and Indian companies. A 2015 study by economists Robert Shapiro and Aparna Mathur shows that upgrading India’s IP protections to China’s level would increase the R&D intensity of India’s domestic information technology firms, over time, by more than 80 per cent.
Prime Minister Modi has championed around the world his “Make in India” programme, seeking to attract investment to power growth and job creation. A broad reform agenda will be essential to securing his vision. An essential component of that agenda is the creation of a reliable IP environment to spur R&D spending by domestic and foreign investors. And that spending can contribute to higher performance by companies while also helping to deliver jobs, rising wages and accelerated growth.