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Industrial Policy in India: Issues, Objectives & Experience: M.H. Suryanarayana
Industrial Policy in India: Issues, Objectives & Experience: M.H. Suryanarayana
M.H. Suryanarayana
Structure
Industrial Policy: Objectives & Evolution Current Status Evaluation
Background:
Planning and Industrial policy evolution highly inter-twined: Objectives of industrial policy articulated in the Industrial Policy Resolutions of 1948 and 1956 Specific priorities and strategies spelt out in successive five year plans to be implemented by: A system of licensing provided for by the Industries (Development & Regulation) Act, 1951; and A system of import licensing and foreign trade policies meant to promote import substituting industrialization Licensing ensured realization of physical targets for capacity set by the plan, trade policy sought to promote domestic industrialization by physical allocation of imports by products.
conditions for the mass of the people. Reduction in income and wealth disparities Prevention of private monopolies and concentration of economic power in different fields in the hands of small numbers of individuals.
The major objectives of the new industrial policy package will be to build on the gains already made, correct the distortions or weaknesses that may have crept in, maintain a sustained growth in productivity and gainful employment and attain international competitiveness.
Foreign Investment:
FDI (up to 51% foreign equity) permitted in high priority industries (high investment and advanced technology) & export oriented companies
Current Scenario:
Substantial changes:
Only six industries require compulsory licensing Only three industries reserved for the public sector Relation of restriction on FDI: FDI up to 100 % under automatic route for most manufacturing activities in Special Economic Zones; FDI ceiling in pvt banking sector up to 74%; oil exploration (100%); natural gas and LNG pipelines (100%); telecom (74%)
Small Scale industries sector: reduced # of items reserved from 821 (1991) to 506 (2005)
Workforce Employment Life Long Learning Typology of Higher Education Institutions Innovation
Public Private Partnership Models Open Science Model, Licence Model, Innovation Model Industry Academia Collaboration Office of Sponsored Projects: Funding agreements Office of Technology Transfer: Patenting and licensing
with Global Partnership with a vision to provide affordable healthcare to the developing world. http://www.osdd.net/
Tax Incentives for R&D Expenditure Funding for Industry Academia Collaboration Transparent Process (Metrics for Evaluation) for Funding Basic
Fiscal
Industrial Structure Cluster Program Specialization, Flexibility in Production, Linkages, Subcontractors, Cooperation among Firms, Economies of Scale and Scope Knowledge Transfer on Best Practices Research Parks in the Industrial Cluster
1999 to 2009 57 percent increase in number of students attending a university outside their home countries (Size: 3 million) Since 1990 Doubling of cross-border scientific collaboration (measured by co-authored journal articles) Half of the world's top physicists no longer work in their home countries 60 percent increase in number of branch campuses" (operating outside national borders) in just five years.
Source: Joseph Klafter (2010) Together, were better, The Times Higher Education July 1, 2010
1. To facilitate the transfer of university created discoveries into new products and services for public use and benefit. 2. To promote regional economic growth and job creation. 3. To reward, retain, and recruit faculty and graduate students. 4. To create (new) relationships with industry. 5. To generate net royalty income for the TO, inventors, and the university. 6. To generate new funding support for the university and/or faculty from sponsored research funding, consulting opportunities for faculty, and donations of money or equipment. 7. To serve as a service center to the university, faculty, students, and staff on all areas related to intellectual property, including providing seminars and consulting assistance when requested. 8. To actively facilitate formation of university-connected start-up (spinout) companies
Source: Gilles Capart and Jon Sandelin (2004) Models of, and Missions for, Transfer Offices from Public Research Organizations http://otl.stanford.edu/documents/JSMissionsModelsPaper-1.pdf
1. Universities should reserve the right to practice licensed inventions and to allow other non-profit and governmental organizations to do so 2. Exclusive licenses should be structured in a manner that encourages technology development and use 3. Strive to minimize the licensing of future improvements 4. Universities should anticipate and help to manage technology transfer related conflicts of interest 5. Ensure broad access to research tools 6. Enforcement action should be carefully considered 7. Be mindful of export regulations 8. Be mindful of the implications of working with patent aggregators 9. Consider including provisions that address unmet needs, such as those of neglected patient populations or geographic areas, giving particular attention to improved therapeutics, diagnostics and agricultural technologies for the developing world
Source: In the Public Interest: Nine Points to Consider in Licensing University Technology 2007 http://www.autm.net/Nine_Points_to_Consider.htm
Licence Model - FY2001: Over 494 new companies based on an academic discovery were formed, and over $1 billion in royalty income -Stanford University TTO 1970 1980 ($4 mn) 1981 1990 ($40 mn) Since 1990 ($ 500 min) - Demonstration of proof of principle of the utility of such inventions
Innovation Model - Collaborative research with industry - Creation of spinout Subsidiaries More developed in certain European countries (UK, Scandinavian countries, Netherlands and Belgium)
Source: Gilles Capart and Jon Sandelin (2004) Models of, and Missions for, Transfer Offices from Public Research Organizations http://otl.stanford.edu/documents/JSMissionsModelsPaper-1.pdf
Approaches:
Spinouts from U.S. universities- Some Issues Requires significant resources & compensation systems Assistance with preparation of business plans Potential for faculty conflict of Help in incorporating the company interest Directly providing or finding early Possibility for adverse public reaction stage investment and adverse media exposure Help in recruiting management team Risk of involvement in product members. liability lawsuits. One spin-out company is created for every $15 million in research spending in UK universities $44 million for U.S. universities. 54% of UK universities have business incubators.
Source: U.K Department of Trade and Industry Research Management Briefing, No. 9, March 8, 2004
Source: University Technology Transfer in the U.S: History, Status and Trends
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