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Research Ecosystem-Country’s first Engineering Research and Development (ER and D) Policy

Research Ecosystem-Country’s first Engineering Research and Development (ER and D) Policy


  • Karnataka launched the country’s maiden Engineering Research & Development (ER&D) Policy.

  • Purpose: To raise its contribution to the sector in the country to 45% in the next five years.

                                       Global Engineering Research and Development Services Market 2018-2022| Need  for Technological Innovation to Boost Growth| Technavio | Business Wire


  1. $100-billion Indian industry: According to Nasscom, ER&D has the potential to become a $100-billion industry in the country in the next five years.

  2. $2 trillion Global Industry: Meanwhile, the global engineering research and development industry is expected to reach a spend of $2 trillion by 2025.

  3. Employment: The State government anticipates the policy has the potential to create over 50,000 jobs in the ER&D space in five years.

  4. Fastest Growing Sector: The ER&D sector in the country is the fastest growing industry with a CAGR of 12.8%.


  • Aims: Considering above mentioned scenario, this policy aims to prepare the State to make use of the future opportunities emanating from this sector.

Karnataka launches engineering research policy

  • Drafted by: Jointly by:

  1. Department of Electronics, IT, Biotechnology and Science and Technology,

  2. Karnataka Innovation and Technology Society, and

  3. Nasscom in consultation with industry stakeholders.

  • Five key focus sectors: Policy has identified five key focus sectors such as
    1. Aerospace and defence;

    2. Auto, auto components and EV;

    3. Biotechnology, pharma and medical devices;

    4. Semiconductors, telecom, ESDM; and

    5. Software products.


  1. Karnataka as skilled knowledge capital: Through this policy, we are aiming to grow our contribution, develop more intellectual properties (IPs), and make Karnataka a skilled knowledge capital.”

  2. Karnataka as India’s R&D state: Karnataka is already the leading contributor to the country’s ER&D industry revenue.

    • State is home to over 400 R&D centres, global capability centres and engineering service providers.

  3. Government would invest in skilling, improve academia and industry collaboration, and also encourage IP creation locally in a big way.

  4. Hub of innovation and transformation: The new ER&D policy heralds a new chapter in the State’s position as a hub of innovation and transformation.

  5. Global Investment: Significant investments by global engineering and IT services companies in the State have already laid the groundwork.

    • That makes the State an attractive destination for ER&D,

    • Contributing a sizeable 40% to the country’s overall revenues in this sector.”

  6. Employment: The ER&D sector in India was expected to generate over 6.5 lakh jobs by 2025.  

Innovation Ecosystems in India:

  • In 2011- Only one unicorn and by 2016- 8 unicorns, when stratup India was launched in the year.
    • Unicorn- Valuation of more than $ 1 billion
    • 2019- 38 unicorns.
  • India is the world’s third largest country in the field of startups, it is ahead of countries Germany and UK.
  • Total valuation: $ 129 billion.

SOURCE: The Hindu