Facebook Twitter google+ RSS Feed

Indian Brains Behind 50 Percent of U.S. Patents

By SiliconIndia   |   Wednesday, 01 February 2012, 08:29 Hrs   |    20 Comments
Printer Print Email Email

Bangalore:More than 50 percent of total patents filed for industrial innovations in the U.S. have Indian brains behind them, reveals a study by Indian Institute of Management, Ahmedabad.

Many of the international corporations, including research and development centres rely largely on Indian brains. A look into the number of Indian inventors in patent applications filed by overseas firms in India and outside in the latest years makes the new trend more clear.

The study 'Foreign R&D Centres in India: An Analysis of their Size, Structure and Implications' comes up with the assessment that local researchers play an important role providing business notions in R & D projects for foreign firms in India. The research also estimates the involvement of multi-national companies in the creation of innovations from India.

The authors of the study, Rakesh Basant, faculty member of IIM-A and Sunil Mani from the Centre for Development Studies, Trivandrum carried out the study taking 120 samples of MNC R&D firms, which were established after 1990.

The study also mentions about ‘reverse innovations’, that means innovations which happened first in Indian centres and then transferred back to their parent R&D firms, which can be used in both developed and developing country market.

A greater part of the R&D centres are either subsidiaries or categories of MNC’s based in the US. ICT sector is an industry where they are highly operative. "Over time, 50-66 percent of the total US patenting of industrial innovations are recorded in India, conducted through these centres," says the study.

As per the recent calculations, the number of overseas R&Ds functioning in India was about 900, until December 2011. In the years 2002-2003, the R&D expenditures from foreign companies was 286 crore, which drastically increased to an amount of 2883 crore in the years, 2009-10.In addition to this, there was an increase of 20 percent in the share of foreign companies in total R&D companies.

The study also laid the suggestion that R& D policy has to be improved in India so as to get benefits of MNC R&D activities."India does not have any explicit policies to promote FDI in R&D although there exists in the country a number of policy instruments, fiscal and otherwise, for promoting FDI and incentivising the conduct of R&D," the study says.



Experts on SiliconIndia
Santhosh  K
Sr. Soft. Engg.
Oracle India
Nehal Vyas
Sr. Team Lead
Cyberoam Tech.
Rani Malli
Sr. Director
Sr. Executive
Vijay Balkrishna Konduskar
Business Consultant
Imans Web Tech
Dr L P  Sharma
Technical Director
Reena Khanna
Dellas  Asse
sys-network admin
Computer Station
Write your comment now
Submit Reset
Reader's comments(20)
1: People of indian origin do well in the US because of the education they get in the US and due to America's culture of innovation and excellence. The same folks rot and remain corrupt if they instead stayed here. Why? This is the question that bothers me.
Posted by:Newgen - 03 Feb, 2012
That is the question that bothers not only you but all the people residing in this subcontinent.
Manjunath Replied to: Newgen - 08 Feb, 2012
3: Most of the expatriate Indians and so called NRIs work in their country of adoption to steal Indian talent and brain power and age old knowledge from our scriptures and Ayurveda.They come to India for lectures on Indian relatives influnece in Indian IITs and IIMs but stay focussed in making their kids work as cyber coolies in USA.They clearly hide their cowardice in the guise of bringing up in India culture which actually means obedience to them. They will not even allow their children to marry a person of their choice especially if it is African American all hell breaks loose.We are considred the best slaves in the world for no reason.
Posted by:captainjohann - 01 Feb, 2012
Your Scriptures are not liked by your own country men, Example sanskrit, not liked by 98% Indians but made to study and msot of the schools are shunning away from this subject. Please do not tell me " sanskrit and Mathematics have resemblence" I was sick of hearing this when i was a young student.
Regarding Indian Ayurveda, its long forgotten because of few selfish Indians who taught these secrets only to their son, who never had an inclination to these subject. We are still 100 year behind US in terms of technlogy. Learn to appreciate what developed countries offered free of cost to underdeveloped cuntries in the form of free knowledge. I too love my country the same as You. But please dont be an hippocrat
Tapan Replied to: captainjohann - 02 Feb, 2012
Hai gentleman,indian ancient education system is best in the world,from indian only all religion and human came,kindly go through M130 gene marker,chola and pandya kingdom,we ruled the world around 100000 BC.who told indian are idiot they only idiot...
ALEXPANDIAN S Replied to: Tapan - 28 Jan, 2014
shut ur mouth tapan ...i think u r not an INDIAN ...I disrespect u
TAMEEM AHMED Replied to: Tapan - 02 Feb, 2012
shut ur mouth Tameem ... Tapan is absolutely right. If all the knowledege is in your scriptures then why don't you patent and create them in India first. The answer is obvious ... either your all idiots (which I don't think is the case) or its not there in your scriptures.
mohammed Replied to: TAMEEM AHMED - 06 Feb, 2012
Well said man, bravo........
Sree Replied to: captainjohann - 01 Feb, 2012
9: Indian brains and american investment(mention this too)....no use crying over spilt milk.....
Posted by:SMP - 01 Feb, 2012
10: Indians are proving their talent across various verticals.Congrates!
Posted by:nimisha - 01 Feb, 2012
11: This report confirms my belief that Indians will be able to do original, creative work if they leave India and live in the US or some other country that will give them an opportunity and freedom to do the kind of work they are passionate about. I have been encouraging my friends in India to emigrate to the US if they have a passion about research on any subject and are willing to work hard. I left India in 1970 because my superiors took credit for the work I did and an American university gave me the opportunity and freedom to do the work work I wanted to do. Thank you America.
Posted by:Dr. Chengara Sreemadhavan - 01 Feb, 2012
Good luck to you Mr. Sam.
I am sick of being in foreign land (London). Want to go back to my roots even if some call it dirty
Satya Replied to: Dr. Chengara Sreemadhavan - 01 Feb, 2012
even though I empathize with you as your work was stolen I have another perspective too. I lived in the US for over 20Yrs. Was passionate about my work and was performing well for a number of years. For some reason I am still doing the same at the same level and at a modest increase in salary. My managers took credit for most of the critical problems I solved in my job. I am not into R&D but work is work. And this is not just one rare case but is all pervasive as can be seen with many of my friends. In corporate america Indians are stereotyped as workers who are not fit for leadership positions. As always there are exceptions but the thread is common. Had I stayed back in India in my public sector job I probably would have been atleast 4 or 5 steps higher in the ranks as is the case with my colleagues I was working with when I left India. So the lesson is
it's not as pure as perceived by some folks. Ofcourse there is opportunity in US and you make choices. BTW one of my friend has over 100 patents and is still at a low rank at one of the corporate giants in US. why? stereotype and racism. It is there even though not open said.

good luck to ya'all.
Kaushal Replied to: Dr. Chengara Sreemadhavan - 01 Feb, 2012
Why don't you migrate back to india if you feel so bad. Spend some time in India where you will get treated worse in corporate life then come back and reply. I have worked both in the Us and India and hands down it is a better atmosphere to work in the US + the chance to innovate and move up was far easier. You must just be lazy and not putting your best into your job.
mohammed Replied to: Kaushal - 06 Feb, 2012
I am aware of the racism that exists even today in the US. But that pales in comparison to the discrimination practiced by Indians on the basis of caste, language, sex, religion, family relationships (nepotism), political favoritism and bribery. Many Indian immigrants hold senior positions in Universities like Harvard and MIT. But it is true that most Indians fail to get senior management positions in Fortune 500 companies. This is because they are nice obedient 'boys and girls' who never had a chance to learn to be assertive and aggressive when they were growing up in India. Indian parents demand obedience and punish any sign of originality, independence or assertiveness. When these boys and girls grow up they become 'obedient servants' and clerks. That is exactly what our British rulers wanted in the 19th and 20th centuries. The youngsters who are now coming to the US are doing much better.
Dr. Chengara Sreemadhavan Replied to: Kaushal - 01 Feb, 2012
I have to agree with you on this Chengara. racism is even more rampant in India. People in north are biased towards the folks in south. do you know of any PMs from south? and if you live in delhi and are from south you are a madraasi....even though that city does not even exist anymore. yeah the trend was obedient boys and girls and perhaps that may be one of the reason. it's changing as you said in the new generation which is good.
Kaushal Replied to: Dr. Chengara Sreemadhavan - 02 Feb, 2012
ALEXPANDIAN S Replied to: Kaushal - 28 Jan, 2014
Well said sir
Satya Replied to: Kaushal - 01 Feb, 2012
Agreed 100%
Tapan Biswas Replied to: Dr. Chengara Sreemadhavan - 02 Feb, 2012
I completely agree with Dr. Chengara, originality is criticized so much that it actually moves on to humiliation. "Boss is always right" is the mantra followed here.
Neha Replied to: Dr. Chengara Sreemadhavan - 01 Feb, 2012