India’s Homegrown Innovation Ecosystem

Context:

India’s innovation ecosystem is gaining strength through the convergence of public research institutions, corporate R&D and technology-driven startups. Advances across strategic sectors indicate a growing capacity to develop indigenous technologies and translate research into commercial applications.

Patent applications reportedly crossed 1.43 lakh in 2025-26, with domestic applicants accounting for over 69%. 

Advances in India’s Homegrown Innovation Ecosystem:

(i) Semiconductors:

Gallium Nitride (GaN) technology illustrates the movement from strategic public research to industrial application.

• Indigenous GaN capability: DRDO’s Solid State Physics Laboratory (SSPL) has developed GaN High Electron Mobility Transistor (HEMT)-based Monolithic Microwave Integrated Circuit (MMIC) technology for high-power, high-frequency applications such as radar and communication systems.
• Technology transfer and Commercialisation: DRDO has moved beyond laboratory development and is offering its GaN HEMT-based MMIC technology for transfer to industry. Startups emerging from India’s academic ecosystem, such as AGNIT Semiconductors, are seeking to translate indigenous GaN research into commercial semiconductor products.

GaN is strategically important for radar, aerospace, advanced communications and power electronics. Indigenous capability reduces foreign dependence on technologies and creates potential civilian spillovers in areas like telecom equipment, electric-vehicle chargers and renewable-energy systems.

(ii) Deep-Tech Entrepreneurship:

• India’s startup ecosystem is gradually moving beyond predominantly software- and service-oriented businesses towards capital-intensive, research-intensive technologies. Startups are increasingly working on semiconductors, advanced manufacturing, biotechnology, space systems and specialised hardware.
• Commitments exceeding $2.5 billion by members of the India Deep Tech Alliance indicate growing private interest in research-intensive ventures.

(iii) Space Technology:

The opening of the space sector to private players has expanded India’s indigenous innovation base.

• Hyperspectral imaging: Pixxel is developing satellites capable of capturing data across numerous spectral bands, with applications in agriculture, environmental monitoring and resource assessment.
• Private launch systems: Skyroot Aerospace’s Vikram programme and Agnikul Cosmos’s launch-vehicle development demonstrate the entry of startups into complex areas such as propulsion, launch systems and space hardware.

Such ventures can expand India’s role from a space-launch service provider towards a broader commercial space-technology ecosystem.

(iv) Telecommunications: 

India’s role in telecommunications is increasingly extending from deploying global technologies to developing intellectual property and contributing to global standards.

• Bharat 6G Alliance is making rapid progress in its stated aim of contributing 10% of the global 6G patents by 2030. Member organisations collectively hold more than 7700 patent filings related to 5G and 6G technologies, including over 4400 foreign filings. 
• Global standardisation: Indian participation in 3GPP, the global body developing mobile communication standards, has expanded substantially. Technical contributions increased from 196 in 2020 to 2,943 in 2025.
• Corporate R&D: The rise of Indian firms in international patenting, including Jio Platforms’ entry into the global top 20 PCT applicants, reflects increasing ownership of telecom-related IP.

What has facilitated this growth?

• Government support:
  • Long-gestation research: Public institutions such as DRDO, ISRO, CSIR laboratories and national research institutions undertake research involving high costs, long development cycles and uncertain commercial returns.
  • Translational research: Programmes such as BIRAC in biotechnology and NIDHI under the Department of Science and Technology help innovators move from ideas and proof-of-concept towards product development and commercialisation.
• Strong academic and research ecosystem: Institutions such as IITs and IISc increasingly function not only as centres of education but also as sources of frontier research and specialised laboratories, patents and intellectual property, incubation and technology transfer, and research-based startups.
• Rising private-sector R&D: Greater corporate spending reflects the growing recognition that proprietary technology, patents and technological standards can provide long-term competitive advantages. Recent DST report (2025-26) quotes private sector-led R&D spending at 51.8%, while the combined government sector contributed 48.2%.

Increasing Patents: A Positive Signal

• India’s patent activity has expanded sharply. In FY 2025-26, the total patent applications filed in India rose from ~1.10 lakh in 2024-25 to ~1.43 lakh in 2025-26. India stands 6th globally according to WIPO. 
• Domestic share reached 69.4% (~0.99 Lakh applications). This indicates a broader domestic capacity to generate and protect intellectual property. 

What constraints still linger?

• Low R&D intensity: India’s R&D expenditure remains below 1% of GDP, considerably lower than major innovation economies. This constrains sustained investment in frontier technologies and long-gestation research.
• Research-to-market gap: The biggest weakness is the “valley of death” between a successful research project and the first paying customer. Technologies may require additional funding for prototyping, testing, certification, clinical validation, pilot production and market development.
• Weak technology-transfer mechanisms: Publicly funded research does not automatically become commercial technology. Unclear ownership, inconsistent licensing conditions, valuation difficulties and prolonged negotiations can discourage industry from acquiring institutional IP.
• Patent quantity versus patent quality and value: Rising applications are encouraging, but the innovation ecosystem ultimately needs more high-quality granted patents, international filings, licensing revenue and commercially adopted technologies.
• Patent-processing capacity: As applications increase, inadequate specialised patent examination capacity can create delays. Greater examiner capacity is particularly important in rapidly evolving fields such as AI, semiconductors, biotechnology and telecommunications.
• Deep-tech financing constraints: Deep-tech enterprises have long gestation periods, high capital requirements and uncertain returns. Conventional venture capital, which often seeks relatively rapid scaling and exits, may not always suit such businesses.
• Infrastructure and talent gaps: Access to semiconductor fabrication and testing facilities, advanced laboratories, clinical research infrastructure, pilot manufacturing facilities and specialised engineering talent remains uneven.

Way Forward:

• Standardise technology-transfer terms for publicly funded IP: Develop transparent licensing templates, clear ownership rules and predictable revenue-sharing arrangements between inventors, institutions and industry.
• Expand patent-examiner capacity: Recruit and train domain specialists, particularly in emerging technologies, while maintaining rigorous examination of novelty, inventive step and industrial applicability.
• Bridge the translational gap: Create milestone-based funding that continues beyond proof-of-concept and patenting to prototype development, validation, certification, pilot manufacturing and the first paying customer.
• Mobilise patient capital: Develop long-duration public-private financing mechanisms suited to the extended development cycles of deep-tech enterprises.
• Strengthen technology-transfer offices: Universities and laboratories need professional expertise in IP valuation, licensing, market assessment, industry partnerships and commercialisation.
• Build shared R&D infrastructure: Expand access to fabrication facilities, testing laboratories, clinical research networks, advanced computing and pilot-production infrastructure.
• Strengthen industry-academia collaboration: Incentivise joint research, co-development and mobility of researchers between universities, public laboratories and industry.

The objective of India’s innovation ecosystem should not be merely to increase the number of patents or startups, but to build an ecosystem capable of repeatedly converting research into intellectual property, intellectual property into products, and products into globally competitive industrial capabilities.

Mains Practice Question:

Q. India is gradually transitioning from a technology-adopting economy towards an innovation-generating economy. Examine the role of public research, private R&D and deep-tech entrepreneurship in this transition and suggest measures to bridge the research-to-market gap.

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