31 October, 2005 | Issue #5

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View Point
From the Technology & IPR Desk
S&T in India: Need for Synergy

On a comparative study between S&T achievements of Korea & India, owing to the inward looking government policy of 70s and 80s, the Indian industry is lagging the Korean economy by almost two decades. The large size of the country, the governance issues and the diversity has taken its own toll. Though we have created world-class institutions to plan and implement the S&T policies, the need of the hour is that of a national synergy and ruthless implementation.

- From the Technology Desk

All the views expressed in the article are personal and do not necessarily reflect the views of the organization the author represents.


  General


  • India must develop tech solutions: Leyland MD
    http://sify.com/finance/fullstory.php?id=13970367
    Monday, 24 October , 2005, 09:33

    Chennai: India cannot stop with just being the shop floor of the world but must take the next step to develop technology solutions and create a wealth of intellectual property, according to R. Seshasayee, Managing Director, Ashok Leyland. Today in Sify Finance

    Addressing the inaugural of the SAEIndia International Mobility Engineering Congress and Exposition 2005 here today, he said after gaining global attention in manufacturing "India can emerge as a major source of design skills for the world."

    It has the potential for technology development with its resource of skilled engineering capabilities, the proposed setting up of a National Automotive Testing and R&D Centre and the presence of a critical mass of component industries. Tamil Nadu, particularly Chennai, is richly endowed in this regard, he said.

    The advantage for an emerging market like India is that it can leapfrog to the latest in technology as it did in telecommunications, he added.

    Inaugurating the exposition, Ted Robertson, President, SAE International, said India has the potential to "solve the (technology) problems of the world." He said that in his 35 professional years, he had come across a number of outstanding engineers from India. | Read more Finance news. |

    According to Seshasayee, even a few years ago, the Indian auto components industry was worried about foreign competition. "But now, the mood is different," he said, adding that the industry had beaten the target for reaching $1 billion in exports by a good two years.

    He observed that the Indian automotive industry had effectively countered the challenge of meeting emission standards in "an extremely compressed timeframe."

    Dr V. Krishnamurthy, Chairman, National Manufacturing Competitiveness Council, said the automotive sector is fully focussing on manufacturing of `hardware' but with electronics playing a prominent role in modern vehicles there is a need for developing software. In this segment too India could dominate as it does in information technology software.

    The Union Minister for Information Technology, Dayanidhi Maran, in his address said India has to move into design development from the low end of technology.

    The automobile industry should actively involve itself in the proposed National Automotive Testing and R&D Infrastructure Project, an automotive testing, homologation and research facility proposed near Chennai at a cost of Rs 1,700 crore, he said.

    With electronics constituting 40 per cent of modern automobiles and embedded Electronic Control Units (ECUs) playing key roles, the demand for such components is bound to increase. There is a need to develop low cost ECUs. To be competitive Indian OEMs and component manufacturers need to design and develop them for proprietary rights on the intellectual property.

    Government institutions and laboratories, manufacturers and IT companies and associations can come together to develop generic solutions. Agencies under the Ministry of Science and Technology, Information Technology and the Indian Institutes of Technology at Mumbai and Chennai could collaborate in focussed industry-academy interaction, he added.



  • R&D Scorecard Global Top 1,000 Companies: US firms dominate; 86% of total R&D comes from just 6 countries out of 36
    By Finfacts Team
    Oct 24, 2005, 09:42

    The increase in corporate R&D investment for 2004-05 was 2 per cent in Europe but 7 per cent in the US and Asia, according to the International R&D Scoreboard, produced by the UK's Department of Trade and Industry.

    There are two Irish companies among the top 1,000 global companies: Kerry Group has a 416th ranking and Elan Pharmaceuticals has a 806th rank .



  • The USA has 6 of the 15 largest companies by R&D (see figure ES3) but 6 of the top 10 larger companies by growth of R&D and 11 of the top 15 by R&D intensity. Europe has 6 of the top 15 by R&D but 1 of the top 10 by growth and 4 of the top 15 by R&D intensity. Amongst R&D-intensive middle-sized companies (sales up to £500m and R&D intensity over 4.5%) in the Global 1000, the USA has the largest proportion (38%) of its Scoreboard companies in this category. However, the UK is second of the 6 major countries by proportion with 22% of its companies in the middle – sized category. Using the US, EU and UK Scoreboards, the proportions of sizeable companies (R&D over £6.4m) in each R&D intensity band can be displayed. For the highest R&D intensity bands above 10%, the UK has a higher proportion than the EU ex UK although less than the USA (see figure ES4). The UK’s number of companies in this category has increased by 77% between the 2001 and 2005 Scoreboards.

    The Scorecard of the the world's top 1,000 companies by R&D spending, shows that European companies as a whole have not increased R&D investment over the past four years, while US companies are spending 12 per cent more on R&D than their four-year average.

    The US continues to score highly when "R&D intensity" - R&D in relation to sales - is measured. American companies invested 4.5 per cent of sales revenues in R&D, compared with 4.0 per cent for Japanese and 3.3 per cent for European companies.
    This partly reflects the fact that the US is strongly represented in the three big R&D-intensive sectors of industry: pharmaceuticals, IT hardware and software.

    Europe is relatively weak in IT and related fields, while Asia lacks a vibrant pharmaceutical sector.

    Key Points

    R&D: the global picture

    1. The business climate for R&D-active companies continued to improve in the period covered by the Scoreboard, with increases in overall sales growth, profitability and R&D levels for the top 1000 companies across the world. Growth in all three measures was stronger in the Americas than in the Asia-Pacific region or Europe. The United States continues to be the strongest R&D nation with 6 of the top 15 biggest R&D investing companies; Europe collectively has 5. The USA also has 11 of the top 15 larger companies by R&D intensity (R&D as % sales); Europe has the remaining 4.


    2. R&D is still overwhelmingly concentrated in the largest countries, sectors and companies:

       a. 86% of total R&D in the Scoreboard comes from just 6 countries out of 36;

       b. 82% of R&D is in the top 7 sectors out of 31; and

       c. 64% of R&D is done in the top 100 companies of the global 1000.

    This concentration means that country or sector changes can be dominated by changes at a few large companies.

    3. For countries, the Scoreboard identifies significant growth in R&D from South Korea and Taiwan, which now contribute 33 companies to the global 1000. With firms like Hyundai (R&D of £976m, double the previous year’s) and Samsung (R&D of £2.5bn, up 37%) now major R&D investors, South Korea is the eighth largest country in the Scoreboard and is growing its R&D faster than any other significant R&D country. So far, the Scoreboard has found no evidence of substantial R&D spending in Chinese or Indian companies.

    4. Pharmaceuticals and automotive R&D are increasing. Amongst the top five sectors, pharmaceuticals had the largest increase over the previous year with 10% followed by automotive with 7%. In automotive, 70% of the increase was contributed by 5 companies out of 68, Hyundai having the largest change.

    5. The Scoreboard also looks at countries’ R&D vigorous companies (R&D Global 1000 companies with sales up to £500m and R&D intensity of at least 4.5%). The USA has the highest proportion of its companies (38%) in this growing middle-sized catergory followed by the UK with 22%. This reflects US and UK vigour in the highly R&D-intensive sectors of pharmaceuticals, IT hardware and software. This is confirmed by a comparison of US,UK and EU ex UK companies with very high R&D intensity and by UK data in key point 7.


    The importance of sectors

    6. The major R&D nations have different R&D sector specialisations, with the USA strong in IT hardware, software and pharmaceuticals, Japan in automotive and electronics, Switzerland in pharmaceuticals and the UK in both pharmaceuticals and aerospace. The proportions of large companies in R&D-intensive sectors such as these, or in lowintensity sectors such as oil & gas, mining, utilities and telecomms, are quite different between countries. Japan and Germany are R&D specialists: they have more than twice the proportion of companies in the R&D Global 1000 than they have in the FT Global 500 list of the world’s largest companies; Canada, by contrast, has only one third as many R&D Global 1000 companies as FT Global 500. The US has similar proportions in both lists and the UK, with its strength in financial services, resources and retailing, has a 50% larger proportion in the FT Global 500. The UK is thus a value specialist with a high presence in sectors with a high wealth creation efficiency whether they be R&D-intensive (such as pharmaceuticals), Capex intensive (e.g. oil & gas) or services (e.g. financials).

    The benefits of R&D investment


    7. There are well-established links between R&D and company performance: R&D intensity is strongly correlated with sales growth, wealth creation efficiency and market cap to sales ratio. The Scoreboards demonstrate that:

       a. 81% of companies with above average wealth creation efficiency also have above average investment intensity in R&D, Capex or both (for 12 sectors where such investment is important).

       b. 84-96% of companies with above average market cap-to-sales ratio also have above average R&D intensity (for the 3 sectors with the highest R&D intensities).

       c. The growth in market value for the portfolio of FTSE 100 companies with the highest R&D intensities was 69% over the last 8 years compared to just 7% for the FTSE 100 index. However, company success depends not only on wise and balanced investment in R&D and other factors (capital investment, brands, skills, market development) but also on good strategic choices and operational excellence.

    Patents and R&D

    8. As noted in key point 7, there are major differences in patent-to- R&D ratios between sectors. 2004 data on US patents granted to some 240 companies in 12 sectors also shows:

       a. A few companies have consistently higher patent-to-R&D ratios than their sector averages. Examples are Canon and Seiko Epson in electronics, Honda in automotive and Pfizer in pharmaceuticals.

       b. The number of larger companies by patent count in each sector tends to reflect regional strengths – the US in pharmaceuticals, Japan in electronics.

       c. In some sectors, a few companies contribute a sizeable fraction of the 2004 patents. For example, the top 2 of 34 pharmaceuticals companies contribute 27% of the patents.

       d. Most companies in the chemistry-based sectors (pharmaceuticals, chemicals, health) reduced their number of 2004 patents over 2003 whereas most in the physics-based sectors (aerospace, automotive, electronics, IT hardware, software) increased their patent count.

    Improvements in this year’s Scoreboard

    9. The expansion to 1000 Global R&D companies (from 700) and 750 UK companies (formerly 700) allows more meaningful comparisons between major countries and allows us to extend our analysis to smaller firms (down to £22m R&D globally).


  • Education in Bihar
    by Bibhuti Bikramaditya
    Chairman, BiharBrains
    Seoul, South Korea
    http://www.patnadaily.com/readerswrite/2005/oct/bibhuti_bikram1.html
    October 22, 2005

    In July-August of 2005, I was in India for a short period of 20 days and spent most of my time with professors, teachers, students, scientist, Vice Chancellors (VCs) and discussed ways to improve education in Bihar.

    I had long talk with three VCs of Bihar, namely Patna University, Mithila University, and BN Mandal University. They all talked about some developmental steps taken by them but they are not satisfactory.

    In the inaugural speech of "Bihar Brains Scholastic Center" Dr. Rajmani Sinha, VC Mithila University, talked about his mission for modernizing the university, starting courses on fishing technology, opening technical college for women, and his meeting with the President of India.

    Dr. J Thakur Ex-VC of Patna University, during my talk with him, openly admitted that these days even the professors don't want to read books. The VCs don’t have enough funds to give salaries to the employees on time, give scholarships to the students, and start courses on modern technology and placement of their students.

    Patna University, one of the oldest universities in northern India, once was the center of excellence known as the "Cambridge of Bihar" and the very name of Patna Science College and Patna College was enough to judge the capability and intellect of a student. Students were getting scholarship on time and hostels were full of bona fide students. The situation has changed dramatically now. Hostels are full of political and non-political "Gundas" and the politicians are misusing them very smartly.

    Till early 90’s, the reputation of some more colleges of Bihar namely LS College under Bihar University, T.N.B College under Bhagalpur University, CM Science College in Mithila University, and Gaya College in Magadh University were considered good because of a good system in place with emphasis on the

    adherence of strict rules by the students, professors, and the employees. Students were working in the labs, professors were delivering lectures on time, and labs were regularly maintained. Now the situation has reversed.

    In my view, this is not only because of a bad governmental policy or non-availability of funds but also because of a lack of vision among the higher authorities of universities and colleges.

    With the changing of time, the universities of Bihar have not been able to revise their rules, update their syllabus. Professors have also failed to 'update' their knowledge, and in general, have failed to keep up with the recent advancement in the science and technology field. As a result, the research and development has suffered. Teachers, professors and other college employees, because of a 'don't-want-to-learn' attitude, are hesitant to use modern technology. Most teachers and students don’t have email ids; don’t know how to use computers and Internet and email facilities.

    What can we do?

    For this, we as sensible citizens of India should come up with the best possible solution and not mere discussion on problems. Passing bucks to political or non-political groups should be stopped. I believe that besides a bad government policy, the elite class of Bihar, business communities, NRIs, educationists have also contributed to this pathetic condition. I do strongly feel that there must be coordination, co-operation and active association among the erudite of this region who should come forward for establishing R&D centers and business houses in Bihar.

    In my view, we need to invest more in education sector from primary level to university and research level. We can invest as an individual or as groups or giving assistance to the group/society in the following fields ASAP.

    a. Providing good infrastructure and creating work environment in university/colleges.

    There are no good labs for science as well as engineering or medical students in colleges or the universities. No experiments are being carried out by the students in most of the colleges. As result, students are afraid of instruments/apparatus.

    We as group/individual can give monetary assistance for the maintenances of labs and open free education for students aspiring to appear in competitive exams within the university campus itself. We must work on creating a work environment in the colleges/university departments.

    b. Open more and more engineering and medical colleges: In my view, we need a minimum of 50 engineering and medical colleges in Bihar. That could be opened under a society or trust. We can learn from Maharashtra, Karnataka, Andhra Pradesh, Tamil Nadu where societies/trust have played significant role in opening colleges/university and providing better education with good infrastructure. People of Bihar, particularly NRIs/ business community, should come forward to minimize the flight of the students to other states.

    c. Open R&D houses: Bihar has enough potential in dairy technology, fishing technology; sugar Industry and engineering technology/basic sciences.
    NRIs of Bihar can invest in opening R&D houses in these fields. Private companies must be attracted by the government.

    As an initiative, biharbrains.org is planning to establish "Aryabhatt Center for R&D" in association with NRIs and professionals from Bihar who are in India and abroad for which huge investment is needed. We welcome donation and support from all citizen of India for this noble cause. We have already established Bihar Brains scholastic center at Patna and now going to open a "Resource center" at Patna University for which recommendation has already been made by the present VC, Patna University.

    d. Primary/secondary schools: Though in almost every state, government primary and secondary schools are not doing well, in Bihar the situation is particularly alarming.

    Now we must be active for the development of this sector and contribute ourselves in whatever way we can. In my view, we can contribute in following ways for improving the condition of primary and secondary schools.

    1. Group sponsorship: We can donate money to the schools for their infrastructure development by forming society by taking one school as test case and then move on to another school in the same fashion.

    2. Individual sponsorship: All capable individual should start thinking about his/her own school where he studied and then contribution can be made to those schools. If he studied from the good schools then he can take one school as model test case and try to develop it in his own way.

    3. Pressure on government: Our society/trust should make this as a task and talk to the government to show some actions. For this, a mass movement is required, no other way around it.

    Make a fortune

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  • Key Technologies for Europe reports recommend six pillars for a research strategy 'Beyond Lisbon'
    [Date: 2005-10-21]
    http://ica.cordis.lu/search/index.cfm?fuseaction=news.simpledocument&N_RCN=24650

    Fifteen expert reports on key research and technology domains for Europe's future are now available; having been debated at a recent conference on 'Key Technologies for Europe'. The final report compiled by the group of experts attempts to look beyond the Seventh Framework Programme (FP7) and the Lisbon Agenda to make recommendations for the future research priorities of the European Union.

    Attendees at the conference, in debating the conclusions of the expert group's foresight report, have made six recommendations for a research agenda 'beyond the Lisbon strategy'. The report draws together in one document the detailed reports prepared by experts in the group on each of their technological fields; including existing areas in transition such as agriculture or energy, and emerging or converging fields such as biotechnology, cognitive science, information technology (IT) and nanotechnology.

    The group, assembled by the European Commission, aims to produce recommendations for a research strategy that look towards an Eighth Framework Programme (FP8) and beyond. Both the report and conference attendees agreed that Europe must adopt a more optimistic and proactive approach to its research policy, while balancing conflicting aims and trends.

    For example, there is a need for a dual strategy that incorporates flexibility in addressing short to medium-term needs, while working within a long-term framework for research policy. Similarly, Europe needs to address its innovation systems failures, such as weak knowledge transfer mechanisms and poor absorption capacity for innovation, while engineering creative long-term transition. This should be achieved through a differentiation approach, based on its own strengths, rather than imitation of the United States and Japan.

    The report goes on to say that this long-term strategy then needs to be translated into an action plan based on six pillars. Firstly, the EU needs to project a global vision that responds to emerging players in key technologies and supports the research strategies of neighbouring countries and regions. Secondly, Europe should follow a 'creative system disruption' approach that identifies emerging sectors where a research gap has not yet developed, and targets investments in key technologies as drivers of social change. This would be complemented by changing research strategies, shifting towards a bio-economy, capitalising on IT and making a transition towards sustainable lifestyles.

    The EU then needs a new long-term research agenda, with an emphasis on basic research, developing infrastructures and clustering multidisciplinary research teams. This also needs to address issues such as the scientist-citizen divide and risks in investing in new technologies. The fourth pillar would be based on foresight approaches that analyse the evolution paths of key technologies, bridge between framework programmes and contribute to bottom-up priority setting through technology platforms.

    The expert group recommends that Europe change its linear framework for the exploitation of knowledge creation. It must overcome poor knowledge transfer, and exploit the capacity of SMEs, as well as invest in and protect European intellectual property. Lastly, the EU needs to invest in societal learning; engaging the public and addressing cultural constraints on investment and acceptance of key technologies.

    Speaking at the conference, held in Brussels on 19 and 20 September, Science and Research Commissioner Janez Potocnik welcomed the recommendations with the words, 'we need to think beyond Lisbon, we need to think in the long-term and make decisions which will be in line with a long-term approach'.

    Attendees took part in wide ranging discussions on the report and the various technological fields, including the relevant members of the expert group. 'Design' and 'context' emerged as key concepts, linking the different technologies and the systematic challenges.

    Early in the conference, Josephine Green of Philips Design in The Netherlands had suggested that as the economy moved away from products and consumers, it would be based more on co-existence with technology, emphasising experiences, transformation and systems. Such a 'context-driven' economy might move beyond productivity as a basis for prosperity, towards sustainability.

    As the work of the expert group points out, products and services are increasingly being brought together in complex systems, and there is a need for more specific research into interdisciplinary fields, such as robotics, statistical and dynamical models, pharmacology and linguistics.

    Beyond the production of knowledge, EU policy makers need to know how it is shared and used - knowledge diffusion is the issue. Some think fields such as complexity theory and cognitive sciences can contribute to greater understanding of knowledge systems and help close the science-technology gap. Europe enjoys strengths due to its potential for empirical study (linguistic, cultural and socio-economic diversity) and a wealth of applications, challenges and research approaches.

    Meanwhile new application areas are emerging; like services, where society is running far ahead of our institutional framework, or security and safety, where technology is driven by both political incentives and public concerns. One delegate commented that from a social science perspective, such emerging fields, whether driven by new applications or new technologies, could be seen in terms of 'new engineering professions'. Some attendees characterised the next stage as a 'knowledge-based bio-economy', and concluded that there is a greater need than ever for a proactive approach to dialogue with the public, civil society and legislators or policy makers.

    Other conference contributions concentrated on the challenges facing Europe and the world. While energy efficiency technology is available now, it was pointed out, it is far from certain that the technologies needed for the world's energy needs in 2040 will be available in time. Speakers contrasted the urgency of action needed with the research topics being pursued. One suggestion was that technology platforms involving stakeholders and policy makers might help to address and raise awareness of these issues.

    In presenting his report on foresight activities on the final morning, Professor Emilio Fontela, from the Universidad Antonio de Nebrija, spoke on developing a long-term future scenario for the next technology wave, and what he called the 'sustainable knowledge economy'. The key policy issues would revolve around cooperation in science and technology, efficient research structures and the design of socio-technical systems. In his view, foresight and social sciences must try to build bridges between demand-pulled technological fields (agri-food, manufacturing, environment) and supply-pushed areas (nano- and biotechnologies, IT and cognitive sciences). It is in this second group that the European and international dimension for cooperation will be most important.

  • India sign accords with Mexico
    http://www.siliconindia.com/shownewsdata.asp?newsno=29755
    Friday, October 21, 2005

    NEW DELHI: India and Mexico today signed five agreements for enhancing cooperation in education, science and technology and other areas, providing a major impetus to bilateral ties.

    The accords are on cooperation between diplomatic academies, cultural and educational exchange programs for 2005-07, program for cooperation in Science and Technology and for exemption of visa requirements for official and diplomatic passport holders.

    They were signed after wide-ranging discussions between Minister of State for External Affairs Rao Inderjit Singh and visiting Mexican Vice Minister for Foreign Affairs Lourdes Aranda Bezaury who led their respective delegations at the fourth India-Mexico Joint Commission meeting.

    As part of effort to promote trade, investment and economic cooperation, it was decided that agreements on customs cooperation, avoidance of double taxation and promotion and protection of investment should be concluded at the earliest, a joint communiqué issued at the end of the five-day visit of the Mexican minister here said.

    The two sides also agreed to strengthen cooperation in agriculture, fisheries, oil and gas, non-conventional and renewable energy sources, science and technology, telecom, IT including e-governance, tourism and other areas of mutual interest.

Disclaimer: This publication is not intended for commercial purpose. All the information
provided are compiled from the resources available from the websites and manuals published.
CII holds no responsibility for the accuracy of the information.

Edited by Moinudeen and Vineet
News-items compiled and contributed by Anuradha, Seema and Subodh.
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