A new study by researchers at IIT Indore, India; University of North Texas, USA and the National Institute of Technology Goa, has shown that research and development in India. has seen a significant boost on the back of patent policy changes made in 2005 . The study was published in The Journal of World Intellectual Property and was funded by the Indian Council of Social Science Research.
Researchers of this study looked at the impact of changes to the existing patent policies on the intensity of research and development from 1989 to 2010. Results show that spending on research and development in the private sector in India has been increasing since 1989. In the period ( 1989 – 1990 )the research and development expenditure was close to 0.06% of the total sales of these companies. This number jumped to around 0.40% during 2004-2005 when Indian patent policies complied with TRIPS (Trade-Related Aspects of Intellectual Property Rights) and gradually increased to 0.48% in 2007-2008.
The study also looked at other factors that promote innovation like the increase in exports, technological improvements, and changes in tariff rates and economic policies. It found that each of these factors did play a role in influencing the spending on research.
However, on investigating the aspects of the patent policy itself, researchers found that the increase in patent protection duration to 20 years, better enforcement mechanisms and complying with international norms significantly impacted the spending on research.
Industries involved in the manufacture of chemical products, botanical products, communication equipment, pharmaceuticals, etc. recorded a notably greater spending on research. (Story Courtesy : research matters.in)