UBS: There is hope for innovation in India
A study by UBS Securities Asia Ltd,Tiger Sparks: Is Asia’s Innovation boom creating a new world order?, says that China is following in the footsteps of Japan, South Korea and Taiwan, shedding its image of being the metal-basher of the world to becoming an innovation powerhouse. The report says that the region as a whole (Asia) is likely to spend more than the European Union and the US combined by 2020.
Where does India figure? UBS says there’s reason for optimism about India, despite weakness in its aggregate innovation scores. “On measures where ‘innovation’ is compared to the size of the economy, or on a per capita basis, India lags the region badly. There is hope however: elite education is high...elite Indian universities are better than Israel and not far off the level of Taiwan. The breadth of innovation inputs may not be high in India, but the tip of the iceberg is sharp,” says the report.
Further, it says that India’s large absolute scale of research and development alongside an advanced military/defence complex suggests the country has a better innovation trajectory than Indonesia, the Philippines and Thailand. The accompanying chart has the details.