Innovation and Patents - August 2013
Transcript of Innovation and Patents - August 2013
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Source: Planning Commission, Aranca ResearchNote: R&D - Research and Development
Seventh-largest R&Dinvestor
In 2012, India had the worlds seventh-largest annual R&D investment, accounting for 2.8per cent of global R&D expenditure; this is expected to increase to USD45.2 million by2013, accounting for 3.0 per cent of global R&D spending
Pharma sector drivingR&D growth
Indias 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 toremain a major R&D growth driver
Rapidly growingoverseas investment
Cumulative overseas direct investments by India has expanded at a CAGR of 47.4 percent to USD146 billion during FY13 from USD21 billion in FY06
Worlds sixth most
innovative country India stood sixth in terms of the most "innovative" country in General Electric's Annual
Global Innovation Barometer in January 2013
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The engineering sector is delicensed;100 per cent FDI is allowed in thesector
Due to policy support, there wascumulative FDI of USD14.0 billion intothe sector over April 2000 February2012, making up 8.6 per cent of totalFDI into the country in that period
Growing demand
Source: 2012 R&D spending estimate by Battelle, Automotive Research Association of India, Aranca ResearchNotes: 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, E - Estimate, NIC - National Innovation Council
Robust demand
Rising income and evolvinglifestyles have led to higherdemand for aspirational products
Indian companies investments inR&D is not surprising given theimportance of innovation to
sustain competitive edge
Attractive opportunities
Vast opportunities in IT,pharmaceuticals, automobiles,biotechnology and agriculture
India is the largest exporter ofIT products and has the thirdlargest pharma sector with afast growing contract researchsegment
Policy support
PPP for promoting exchange ofscientific knowledge and R&D
Strengthening educationalinfrastructure
Amendments to the Patents Act(1970) to make it TRIPS-compliant
Setting up of NIC in 2010
Adoption of Science, Technologyand Innovation Policy 2013
High ratings
Establishment of CoEs in variousareas; NMITLI initiative on PPP
basis Increased investments by private
players; setting up of R&D centers
During FY0713, IPR applicationsincreased at a CAGR of 11.8 percent from 137,900 to 269,500
2011
R&Dspending:
USD38billion
2013E
R&Dspending:USD45.2
billion
AdvantageIndia
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Source: Korn/Ferry International, Asia-Pacific Research center, Stanford University, Aranca Research
Notes: TRIPS - Trade Related Aspects of Intellectual Property Rights, WTO - World Trade Organisation
Indian Patentsand Designs Act
(1911) Dependence on
bulk imports
Establishmentof CSIR, DRDO,ICAR, ISRO andIITs
Patents Act (1970)
Recognition ofprocess patents only
Restricted foreignownership in Indiancompanies
Focus on reverse
engineering amongpharmaceuticalcompanies
TRIPS under WTO(1995)
Amendments to thePatents Act (1970)to make it TRIPScompliant
Reintroduction ofproduct patents
Reduction in tariffand non-tariffmeasures
Easing FDI norms
Shifting focus inpharma towardsclinical researchand new drugdevelopment
Before 1970Introductory Stage
1970 to early 1990sIndigenisation
Stage
Early 1990s to 2005Liberalisation and
Transition Era
2005 onwardsGrowth Era
Augmentation of network of
centrally-funded institutionsand universities
Increase in R&D and exportsin sectors such as IT, pharma,electronics and automobiles
Innovations in automobilessuch as Nano, the worldsleast expensive car
Focus on discovery of newchemical entities by pharma
companies Numerous innovations from
rural India
Setting up of NationalInnovation Council
Adoption of Science,Technology and InnovationPolicy 2013
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Source: Department of Industrial Policyand Promotion, Aranca Research
Intellectual
Property (IP)
Patents
Trademarks
Geographical
Indications
IndustrialDesigns
LayoutDesigns
Plant Variety
Protection
Copyright
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Source: Battelle, Aranca ResearchNotes: GERD - Gross Domestic Expenditure on R&D,
R&D - Research and Development
Forecasted Expenditure of Worlds Leading R&D
Investors in 2013 (USD Billion)In 2012, India was the seventh-largest country in terms ofR&D investments, up from eighth largest in 2011
It is expected to retain this position in 2013, with R&Dinvestments increasing to USD45.2 billion from USD38billion in 2011
32
39
42
45
51
58
91
162
220
424
Brazil
Russia
United Kingdom
India
France
South Korea
Germany
Japan
China
United States
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Source: Battelle, Aranca ResearchNotes: CAGR - Compound Annual Growth Rate;PPP - Purchasing Power Parity, F - Forecast
R&D Spending in India (USD Billion)Indias share of global R&D spending rose to 2.8 per cent in2012 from 2.6 per cent in 2010 and is forecasted to reach3.0 per cent by 2013
Indias R&D investment growth is likely to outpace overallGDP growth. During 201013, R&D spending (in terms ofPPP) is expected to expand at a CAGR of 11.6 per cent toUSD45.2 billion, while GDP (in terms of PPP) would
increase at a CAGR of 7.8 per cent
The Planning Commission of India expects to double thegovernments R&D spending from the current 0.9 per centof GDP to 2 per cent by 2017
33
3840
45
0.80%
0.85%
0.85%
0.90%
0.75%
0.78%
0.81%
0.84%
0.87%
0.90%
0.93%
0
10
20
30
40
50
2010 2011 2012 2013F
R&D expenditure (PPP) AS a % of GDP -RHS
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Source: Reserve Bank of India, Battelle, Aranca Research
Cumulative Overseas Direct Investment(USD billion)
Cumulative overseas direct investments increased toUSD146 billion in FY13 from USD21 billion
This has led to significant amount of technology transferthrough industrial acquisitions
For instance, Tata Steels takeover of Corus brought with itmore than 80 patents and 1,000 researchers
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38
56
100
125
146
FY08 FY09 FY10 FY11 FY12 FY13
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Source: Department of Industrial Policy and PromotionAranca Research
Break-up of Intellectual Property Rights (IPR)Applications (FY13)
During FY13, the total patent applications stood at 269.5thousand
Trademark applications accounted for the largest share (79per cent) of total applications at 212,900
Patent and design applications accounted for 17.6 per cent(47,300 applications) and 3.4 per cent (9,200) share,respectively
18%
3%
79%
Patent-LHS
Design -LHS
Trade markapplication -LHS
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Source: Department of Industrial Policy and PromotionAranca Research
Intellectual Property (IP) applications (000)During FY0713, intellectual property rights (IPR)applications increased at a CAGR of 11.8 per cent from137,900 to 269,500
Trademark applications expanded at a CAGR of 12.8 percent over FY0713 to 212,900
Patent and design applications rose at a CAGR of 8.6 percent and 8.9 per cent, respectively, during the same period
Growing IP application activity indicates increased in-houseR&D and innovation in India 0
50
100
150
200
250
300
0
50
100
150
200
250
FY07 FY08 FY09 FY10 FY11 FY12 FY13
Patent-LHS Design -LHS
Trade mark application -LHS Total IPR applications -RHS
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Source: Zinnov Consulting, The Indian R&D Landscape, 2012
Notes: CAGR - Compound Annual Growth Rate,R&D - Research and Development,
MNC R&D Centers in IndiaThe number of MNC R&D centers in India has grown at aCAGR of 16.4 per cent to 871
Around 30 per cent of the top 1,000 global R&D spendingorganisations have centers in India
Most of the centers are located in metro cities Bengaluru,Delhi, Mumbai, Chennai and Hyderabad. However, MNCshave begun spreading out to tier-2 cities after 2005
Indias robust talent pool of over 200,000 engineers hasgrown at an average rate of 9 per cent over the last fiveyears; this has been supporting increased R&D activity
191
297
517
699
780
871
Pre 2000 2002 2004 2006 2008 2011
CAGR: 16.4%
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Source: Zinnov Consulting, The Indian R&D Landscape, 2012Notes: CAGR - Compound Annual Growth Rate,
R&D - Research and Development
MNC R&D centers Distribution in India (2012)Bengaluru (erstwhile Bengaluru) has 43 per cent of MNCR&D centers, followed by Mumbai and Pune at 19 per cent
Until 2005, Tier-1 cities were the favourite destination forMNCs due to the availability of rich talent, favourablepolicies, and better quality of life
However, post-2005, MNCs have started expanding to Tier-2 cities, as they offered benefits such as higher catchmentarea, lower attrition, and cost arbitrage
Bengaluru
43%
Mumbai/Pune19%
Hyderabad13%
NCR11%
Chennai10%
Others4%
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Source: Financial Express, Value Notes, Aranca Research,
Notes: R&D - Research and Development, IT - InformationTechnology; CAGR - Compound Annual Growth Rate
R&D Outsourcing in India (USD Billion)R&D outsourcing has increased at a CAGR of 33.5 per centduring 200311 to USD13.1 billion
Companies across sectors (such as IT, consumerelectronics, personal devices, medical electronics, telecomand automobiles) are now offshoring complete productresponsibility
India has become one of the most preferred location forengineering offshoring
By 2020, USD42 billion worth of work related to R&D ofproduct engineering is expected to be outsourced to India
1.3
13.1
2003 2011
CAGR: 33.5%
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Source: Organisational websites, Aranca Research
Notes: R&D - Research and Development
Organisation Business description
Council of Scientific and Industrial Research (CSIR)
CSIR is Indias largest R&D organisation, with 39 laboratories and 50 field stations. In FY12, CSIR had over1,872 active patents in India, 813 in the US, 328 in the EU, 147 in Japan and 829 in other countries
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, informationdissemination, leather and metals, minerals and manufacturing etc.
Defence Research and Development Organisation (DRDO)
DRDO is engaged in design and development of weapon systems and equipment in accordance with therequirements of the military services
In 2012, DRDO had a network of 50 labs and establishments to carry out research. It has over 5,000 scientistsand about 25,000 other scientific, technical and supporting personnel
Its research areas include aeronautics, armaments, combat vehicles, electronics, instrumentation engineering
systems, missiles, materials, naval systems, advanced computing, simulation and life sciences
Indian Council of Agricultural Research (ICAR)
ICAR is one of the largest national agricultural organisations in the world. It consisted of 99 institutes and 53agricultural universities across India in 2012
It is the apex body for coordinating, guiding and managing research and education in agriculture, includinghorticulture, fisheries and animal sciences in India
*This list is indicative
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Organisation Business description
India Space Research Organisation (ISRO)
ISRO is engaged in development of space technology and its application to various national tasks
The organisation has 19 centers across India to pursue R&D activities
Its research areas include communication satellites for television broadcast, telecommunications and
meteorological applications, and remote sensing satellites for management of natural resources
Indian Council of Medical Research (ICMR)
ICMR is the apex body in India for the formulation, coordination and promotion of biomedical research andone of the oldest medical research bodies in the world
The council has a fleet of 21 institutes, six regional medical research centers and five units engaged inmedical research
The councils research priorities encompass the areas of communicable diseases, fertility control, maternaland 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 andhealth informatics.
CDAC has filed 16 patent applications in FY11
Source: Organisational websites, Aranca Research
Notes: R&D - Research and Development
*This list is indicative
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Organisation Business description
Indian Institutes of Technology (IITs)
It is a group of autonomous engineering and technology oriented institutes of higher education
In FY11, IITs filed the highest number of patent applications amongst all the institutes and universities in India.IIT Bombay filed 77 patent applications in 2011, an increase of 400 per cent from that in 2006
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 anddisseminating information to the various stakeholders in dairy business to make dairying a self-sustainingbusiness
In 2012, R&D activities comprised 71 in-house and 46 externally funded research projects, including 20 NAIPprojects in consortium mode with financial outlay of USD7.1 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
In FY10, the institute filed the third highest number of patent applications amongst all the institutes anduniversities in India
Source: Organisational websites, Aranca Research
Notes: R&D - Research and Development
*This list is indicative
http://www.ndri.res.in/ndri -
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Organisation Business description
The Energy and Resources Institute (TERI)
TERI is engaged in developing solutions to global problems in fields of energy, environment and sustainabledevelopment
The important research areas include biotechnology, earth science and climate change, technology
development, social transformation, and modelling and economic analysis
Institute of Life Sciences (ILS)
ILS undertakes basic and translational research in frontier areas of life sciences
The institutes 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 philosophyand religion; education, culture and arts; natural and life sciences; and national integration and nation building
Source: Organisational websites, Aranca ResearchNotes: R&D - Research and Development
*This list is indicative
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Organisation Business description
Hindustan Unilever Limited
HUL is credited with innovations in product areas such as structured bar soap, fairness cream, zero alcoholsoap, poly-coated scouring bar for dishwashing, fortified salt, instant tea, critical components for a waterpurifying device, and value-added (nature care) tea
Worldwide, HUL has over 20,000 registered patents and patent applications
The company filed 57 patent applications and was one of the top Indian patentees in FY11
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, andrefractory technology
The company filed 42 patents in FY12, taking its IP portfolio (filed and granted patents and copyrights) from 32in FY2000 to 493
Cipla Limited
Ciplas R&D division focuses on new product development and new drug delivery systems across a range oftherapies
In FY12, the companys total R&D spending stood at USD59.2 million, a growth** of 13.6 per cent from a yearago
In 2011, Cipla filed 260 patent applications across the globe of which 13 were filed in India
Source: Organisational websites, Aranca ResearchNotes: R&D - Research and Development, Growth** - In terms of INR
*This list is indicative
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Reaper WindrowerMachine
For easy and timelyharvesting ofsoybean crop
Prevents shattering
of soybean pods dueto non-availability oflabourers forharvesting the cropin time
Hand Operated WaterLifting Pump
For convenientwater-lifting at agood discharge rateand low cost
The pump was builtin response to adearth of availablepumps that could beafforded by smallfarmers
Bamboo LatheMachine
For stripping off theouter covering ofbamboo to developa smooth surface for
making interiordecoration and utilityitems
Reduces the timeand labour requiredto do the jobmanually
Pedal OperatedWashing Machine
For washing clotheswhile exercising ona pedal machine
An affordable and
convenient way ofwashing clothes inrural India whichexperiencesfrequent powershortages
Source: Rediff Business, Aranca Research
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Source: Times of India, Economic Times, The Hindu, Defence NowNotes: ICBM - Inter-Continental Ballistic Missile, DRDO - Defence Research & Development Organisation, HSL - Hindustan Shipyard Limited
INS Vikrant
India IndigenousAircraft Carrier (IAC)
Total displacementof over 40,000tonnes
Being built byCochin ShipyardLimited
To be inducted by2014-16
Agni-V missile
Successfully testfired in April 2012
India joined an elitegroup of nationshaving ICBM
technology Indigenously
developed by DRDO
To be inducted by2014-15
Arihant ClassSubmarines
With its launch in2009, India joinedan elite group ofnations having
nuclear-poweredsubmarines
Developed by HSL
To be commissionedby 2012-13
Tejas
Second supersonicaircraft to bedevelopedindigenously byHindustan
Aeronautics Limited(HAL)
To be inducted by2015 at a cost ofUSD103.1 million
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Source: Battelle, Electronics for You, Organisational websites, Aranca ResearchNotes: PPP - Public Private Partnership, R&D - Research and Development, NMITLI - New MillenniumIndian Technology Leadership Initiative, CoE - Centre of Excellence, NIC - National Innovation Council
Policy support
PPP in R&D
Strengtheningeducational
infrastructure
Amendments to thePatents Act &Setting up of NIC
Inviting Resulting in
Growing Demand
Evolving consumer
lifestyles
Liberalisation andincreasing competition
Proximity to futuregrowth markets
Increasing Investments
Establishment of
CoEs, NMITLI initiative
Providing support toglobal projects from
India
Increasing corporateR&D investments
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Source:Aranca Research
R&D spending by top six pharma giant in FY12(USD million)
Indias pharmaceutical market is highly fragmented, with300 large and 18,000 mid-sized and small companies
The countrys pharma industry accounts for about 1.4 percent of the global pharma industry in value terms and 10 percent in volume terms
The healthcare sector in India is expected to reach USD100billion by 2015 from the current USD65 billion
This would help drive R&D growth in India; the averageR&D expenditure by Indian pharma companies is close to 6per cent of total revenues
In FY12, total R&D spending by top six pharma companieswas USD503.5 million
130 124
98
59
39 36
16
Dr.Reddy's
Labs L
upin
Ranbaxy
Cipla
Piramal
Healthcare
Wockhart
Orchid
Chemicals
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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 likevaccines, drugs and pharmaceuticals, super computing, solar energy and electronichardware
The government has shell out a USD1.1 billion public-private partnership fund to supportresearch and development in India
Funded Institutions andForeign Universities
Increasing the number of Indian Institutes of Technology (IITs) to 16, establishing 3 newIndian institute of Science Education and Research (IISER) and 30 central universities
Foreign universities permitted to enter the higher education system in India by establishingtheir own campuses or joint ventures with existing universities
Tax Incentives
Government offers 200 per cent deduction for capital and revenue expenditure incurred bymanufacturing companies with in-house R&D
Income tax exemption of 125 per cent to 175 per cent on donations made to universities,colleges and other scientific associations
Source: Battelle, Electronics for You, Organisational websites, Aranca ResearchNotes: PPP - Public Private Partnership
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Patents Act Amendments to the Patents Act, 1970 to make it TRIPS compliant Increased incentives to domestic firms to conduct R&D Increased likelihood of technology transfer from developed nations
National InnovationCouncil (NIC)
In 2010, NIC was set up to implement strategies for inclusive innovation in India andprepare a roadmap for innovation over 2010-20
Tasks of NIC include creating a framework to encourage innovation by central and state
governments, universities, R&D institutions and SMEs
Source: Battelle, Aranca ResearchNotes: SMEs - Small and Medium Enterprises
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Source:Aranca Research
Introduction of STIPolicy 2013
In January 2013, the government of India introduced the Science, Technology andInnovation (STI) policy 2013 at the centenary sessions of the Indian Science Congressheld 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
Rising Involvement ofThe 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 anddevelopment (R&D) to 2 per cent of GDP by 2017 from current 1 per cent
Increase in HumanResources
The policy seeks to increase the number of full-time R&D personnel by 66 per cent over201317 and expand the number of publications from the current 3.5 per cent of global
share to around 7 per cent by 2020
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2013
Jan 13: DuPont is planning todouble their R&D activities in India
Jun 13: Huawei will be setting up
a new research and development(R&D) centre in Bengaluru with aninvestment of USD150 million
2012
Mar 12: Aditya Birla Grouplaunches R&D centre at NaviMumbai, developed at a cost ofabout USD52 million
Apr 12: Maruti Suzuki announcesan investment of USD500 millionto set up an R&D facility at Rohtak
Jun 25: Chinese equipment makerHuawei will invest USD2 billion toset up global R&D center
Nov 23: General Electric will
invest USD60 million to expand itsR&D facility; its is expected todevelop 30 new products by 2015
Source: India Electronic News, Moneycontrol, CNBC, Economic Times, Appliancemagazine.com,Business Standard, The Hindu, Company websites, Aranca Research
Notes: R&D - Research and Development
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2011
Apr 11: Hitachi to invest
USD400 million to set up
R&D center in Bengaluru
May 11: ISRO announcessetting up of spacecraft
R&D center on 530 acres
land at Chitradurga
Oct 11: Saab AB and
Mahindra Satyam open an
R&D center in Hyderabad
for conducting research in
aerospace, defence andcivil security
2010
Jan 10: Huawei allocates
USD500 million investment
for R&D center in
Bengaluru
May 10: Bridgewater
opens center of Excellence
in Gurgaon for telecom
software R&D
Aug 10: Alstom earmarks
USD39 million to establish
R&D center for power
products at the Infosyscampus
2009
Jun 09: LG Electronics
doubles its annual R&D
investment outlay to
USD83 million
Oct 09: Tata DoCoMo sets
up R&D center for value-
added services (VAS) and
mobile applications
Oct 09: Hyundai sets up
R&D center at Hyderabad
at an investment of USD25
million
Source: India Electronic News, Moneycontrol, CNBC, Economic Times, Appliancemagazine.com,Business Standard, The Hindu, Company websites, Aranca Research
Notes: R&D - Research and Development
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Source: India Electronic News, Moneycontrol, CNBC, Economic Times, Appliancemagazine.com,Business Standard, The Hindu, Company websites, Aranca Research
Notes: R&D - Research and Development
Centers of Excellence(CoEs)
The government has set
up CoEs based on the
PPP model for technology
development and transfer,
scientific research, humanresource development and
economic outreach
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 frominstitutions, academia and
private sector to play a role
in the process
NMITLI has initiated 60
largely networked projects
in diverse areas involving
85 industry partners and
280 R&D groups fromdifferent institutions with
investment outlay of
USD114 million
Centrally FundedInstitutes
The government proposes
to establish 8 new IITs, 3
IISERs, 10 NITs and 20
IIITs by 2012
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 anduniversities category
Central and ForeignUniversities
Government is expected to
have set up 30 new central
universities by 2012
New universities in 16uncovered states
The remaining 14 new
Central Universities will be
set up as world class
centers of excellence at
different locations
Foreign universities
permitted can enter higher
education system in India
by having their own
campuses or joint ventures
with existing universities
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Source: Lupin website
Note: API - Active Pharmaceutical Ingredient, CNS - Central NervousSystem, 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 ofquality, affordable generic and branded formulations andAPIs
Lupin has emerged as the fifth largest and among the topfive fastest-growing companies in the US
It is one of the worlds largest manufacturers of TB drugs
and has significant market share in the cardiovascular,diabetology, asthma, paediatrics, CNS, Anti-infectives andNSAIDs therapy segments
By FY12, Lupins total patent filing reached 1,024 up from600 in FY08
38
26
75
42
26
84
42
12
5
14 17
43
FY09 FY10 FY11 FY12
Formulation Patents API/Process patents NCE patents
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Source: Lupin website
Note: CAGR - Compound Annual Growth RateCAGR* - Growth in INR terms
Lupin net sales (USD million)Its revenues increased from USD822.5 million in FY09 toUSD1.7 million in FY13, at a CAGR* of 25.8 per cent
Advanced market formulations comprised nearly 52 per centof its revenues in FY12
822
1,007
1,271
1,474
1,742
FY09 FY10 FY11 FY12 FY13
CAGR*: 25.8%
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Source: Office of the Controller General of Patents,Designs and Trademarks 200910 Annual Report,
Company Annual Reports, Aranca Research
Indian IT Patent Applications (FY10)Infosys filed the highest number of patent applications in theIndian IT sector, followed by LG Soft India and C-DAC
Research activity for different areas is allocated amongstdedicated labs such as Software Engineering lab,Convergence lab, Security and Privacy lab, DistributedComputing lab and E-Com lab
6
6
6
7
23
SamsungIndia
Newgen
C-DAC
LG Soft India
Infosys
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Source: Company Annual Reports, Aranca Research:Note: CAGR - Compound Annual Growth Rate,
* CAGR calculated on rupee numbers
Income and net profit (USD billion)During FY0613, the companys revenues increased at aCAGR* of 19.3 per cent to USD7.4 billion from USD2.2billion
During the same period, net profit expanded at a CAGR of17.8 per cent to USD1.7 billion from USD552 million
Infosys spent USD167 million in R&D expenses, up 80 per
cent from the USD92 million spent in FY10
Consequently, total R&D spending during FY13 came in at2.3 per cent of total revenue
0.0
0.2
0.4
0.6
0.81.0
1.2
1.4
1.6
1.8
2.0
0
1
2
3
4
5
6
7
8
FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13
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Source: Economic Times, Company Annual Reports,
Aranca ResearchNote: CAGR: Compound Annual Growth rate, * CAGR calculated in
Indian Rupee terms
Strong Research and DevelopmentIncorporated in 1933, HUL is Indias leading company bysales in the fast-moving consumer goods (FMCG) sector inIndia. British-Dutch company Unilever owns a majority stakeof 52 per cent in HUL
In 2012, Forbes recognised HUL as the world's sixth mostinnovative company; it was the highest ranked FMCGcompany in the list
Eighteen ofHULs brands featured in the 100 Most TrustedBrands 2012 survey carried out by Brand Equity
HUL was felicitated for receiving the highest number ofpatents in 2009 at the Annual Intellectual Property Awards2010
The company has over 20,000 registered patents and
patent applications worldwide
891 994
1,612
FY10 FY11 FY12
CAGR*: 34.5%
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Source: Company Annual Reports, Aranca Research
Notes: FY09* represents data for 15 months (Jan 2008- march2009) as the company changed it reporting period from calendar
year to Fiscal year,CAGR* - Compound Annual Growth Rate;
CAGR is calculated in INR
Sales (USD billion)During FY0513, HULs revenues increased at a CAGR* of12.0 per cent to USD4.9 billion from USD2.6 billion
During FY12, the company spent USD336 million in R&D,up 62 per cent from the USD218 million spent in FY11
2.6 2.9
3.7
4.7
3.8
4.54.8 4.9
2005 2006 2007 FY09* FY10 FY11 FY12 FY13
CAGR*: 12.0%
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Source: Company Annual Reports, Aranca ResearchNote: CAGR* - Compound Annual Growth Rate
Total Application for Patents, Design andCopyrights Filed
Tata Motors, a subsidiary of the Tata Group, is one of theleading automobile company and has presence in 129countries across six continents
Tata Motors is the leading commercial vehicle manufacturerand the third-largest passenger vehicle manufacturer inIndia
It is also the worlds fourth-largest truck manufacturer byvolume
During FY0612, the number of applications for patents,design, and copyrights filed by the company expanded at aCAGR* of 16.4 per cent to 212 in FY12
Tata Motors Tata Indica is India's first indigenouslydeveloped passenger car
Tata Nano, a USD2,100 car, is an indigenous example ofIndias innovation in the automobile segment
43 34
254
314
272
182 212
FY06 FY07 FY08 FY09 FY10 FY11 FY12
CAGR*: 16.4%
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Source: Company Annual Reports, Aranca ResearchNotes: R&D - Research and Development, CAGR - Compound
Annual Growth Rate; CAGR is calculated in INR terms
Total Application for Patents, Design andCopyrights Filed
During FY0613, Tata Motors revenues increased at aCAGR* of 31.8 per cent to USD34.8 billion from USD6.2billion
The companys R&D spend expanded at a CAGR of 16.4per cent to USD323.1 million in FY12 from USD176.0million in FY07
6
8 10
1620
28
36 35
FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13
CAGR*: 31.8%
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Source: ARAI, Business Standard, India Law Office, Aranca ResearchNotes: IT - Information Technology, ARAI - Automotive Research
Association of India, NVH - Noise, Vibration and Harshness
Pharma and Healthcare
Contract research is a fast growing segment in the Indian healthcare industry Indian pharmaceuticals market is anticipated to expand at a CAGR of 17.2 per cent over
2011-2016 to touch USD27.3 billion Indias huge population places it among the worlds largest markets for vaccines and
drugs
Information Technology(IT)
India is increasingly seen as a product development destination Companies are now offshoring complete product responsibility including complex services
like product management
Automobiles
Research is being carried out by individual companies as well as industry associationssuch as ARAI in various areas such as structural dynamics, safety, NVH and electronics
India is the sixth largest auto market globally and is poised to become the third largest by2020
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Source: ARAI, Business Standard, India Law Office, Aranca ResearchNotes: IT - Information Technology, ARAI - Automotive Research
Association of India, NVH - Noise, Vibration and Harshness
Biotechnology
Protein and antibody production, and fabrication of diagnostic protein chips are promisingareas for investment
Stem cell research, cell engineering and cell-based therapeutics are other areas, whereinIndia will cash in its expertise
Agriculture
India has the potential to become a major producer of transgenic rice and severalgenetically modified (GM) or engineered vegetables
Hybrid seeds, including GM seeds, represent new business opportunities in India basedon yield improvement
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Automotive Research Association of India (ARAI)Survey No 102, Vetal Hill, Off Paud Road, Kothrud,Pune - 411 038Tel: 91-020 30231111Fax: 91-020 25434190E-mail: [email protected]: www.araiindia.com
Indian Society for Clinical Research (ISCR)c/o Pfizer center, 5, Patel Estate, S.V.Road, Jogeshwari(West),Mumbai-400 102Tel: 91-022 26774140, 66932028E-mail: [email protected]: www.iscr.org
The South India Textile Research Association (SITRA)13/37, Avanashi Road, Coimbatore - 641 014Tel: 91-422 2574367, 6544188Fax: 91-422 2571896Email : [email protected]: www.sitra.org.in
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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
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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
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Year INR equivalent of one US$
2004-05 44.95
2005-06 44.28
2006-07 45.28
2007-08 40.24
2008-09 45.91
2009-10 47.41
2010-11 45.57
2011-12 47.94
2012-13 54.31
Exchange Rates (Fiscal Year)
Year INR equivalent of one US$
2005 45.55
2006 44.34
2007 39.45
2008 49.21
2009 46.76
2010 45.32
2011 45.64
2012 54.69
2013 54.45
Exchange Rates (Calendar Year)
Average for the year
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