FromGrainRevolutiontoBrainRevolutionBuildingSeed.ppt

Sunder: Seed Farms of Innovation in India From Grain Revolution to Brain Revolution: Building Seed Farms of Innovation to Sustain India’s Economic Growth Shyam Sunder, Yale University Institute of Management Technology Ghaziabad, U.S. Educational Foundation in India Kri Foundation India Habitat Center, New Delhi, January 9, 2007 A Summary Innovation is the primary engine of economic growth Adoption of innovation in the past has helped India reap its fruits and grow: agriculture, software Global competition will not allow India to sustain this strategy for long Inconvenient truth: India lags in innovation, is falling further behind--a state of a largely unrecognized crisis To lead India needs serious rethinking about the future of innovation in the Indian economy Building seed farms of innovation need political commitment, restructuring the institutions of innovation, financial investment, and social respect for scholarship Solutions will have to be found urgently, and from within Innovation as the Engine of Growth Broad agreement among economists: innovation is a key to economic leadership and prosperity of societies Scientific and technological innovation in Germany, Japan and U.S. Is widely cited as a source of their sustained economic prowess Innovation of thought and creativity in the arts, humanities, and social sciences has characterized the vitality of civilizations throughout history (including in India’s history) In this conversation, I shall take it as a given that innovation is a primary engine of economic growth Alternatives to Innovation On occasion, societies have succeeded in attaining prosperity without being leaders of innovation Imitation Exploitation of natural resources Looting However, prosperity achieved through these means is rarely sustainable In a competitive world economy, one must innovate continually to stay ahead, and capture its benefits. Adoption of Innovation Adoption of innovation in the past has helped India reap its fruits a