Steering India towards systematic innovation

Washing machines are often used to wash shoes along with clothes. This has become a common way of saving time and hard work in India. This illustrates the ‘natural talent’ of Indians to innovate and optimally use what is available; this is what we call Jugaad (a term coined in India referring to unsystematic innovation).

But when is comes to systematic innovation, Economist Intelligence Unit (EIU), in a study to measure the innovation index of countries, has ranked India 58 of 82 countries, on the basis of patents per million population. Improvement in India’s ranking is not expected in the coming years.

Rishikesha T Krishnan, professor-corporate strategy, IIM Bangalore and director, Milestone Religare Investment Advisors, in his book From Jugaad To Systematic Innovation-The Challenge For India elucidates reasons for India’s failure in keeping up with nations that lead the global innovations front.

The book discusses the problem of innovation and possible solutions. Since the author has not delved into technicalities, it is a suitable read for all types of readers.

“Indian firms in general, do not appear to be successful in measuring up to world standards in carrying out domestic R&D, innovating or creating new brands, investing in long-term capabilities, and building human resources,” says the author.
Be warned, the extensive use of acronyms can leave readers a little disgruntled, as a reader has to constantly flip pages to know what they stand for.

The real plot starts in the third chapter, where the author believes that that innovation output of a country is the result of a complex interplay between policies, institutions and incentive structures.
Innovation systems of different countries have evolved in different ways because of historical, political, cultural, social and economic factors and philosophies.

Talking of India in specific, he says, “There are some socially and culturally embedded barriers to innovation in India. These are entrenched to varying degrees, and need to be recognised and tackled otherwise just tinkering with inputs and incentives will have limited impact.” The education system in India fails to undertake quality research and provide the necessary foundation for modern industrial economy.

Krishnan says, “Indian organisations face barriers to innovation that have their origin in Indian society and culture such as poor teamwork, the enduring importance of upward hierarchical progression, a brahminical attitude that gives brainwork a superior position over physical work. By creating a new generation of technology-driven innovative enterprises that last longer and grow rapidly, we can expect to have a new set of new role models that will generate confidence in our innovation capabilities and act as a positive reinforcement to new innovation efforts.”

The author uses statistics to show where India stands globally. For example, 59% of the advanced technology products imported by the US in recent years came from China and surrounding countries, while India’s exports are so insignificant that it does not even figure on the list.

Krishnan supports his argument by highlighting success stories in grey boxes. For example, how Stanford University rose to fame, or Tata Steel’s transformation to become India’s leading steel producer or about higher education reform in China.

In the concluding chapter, the author offers possible solutions to improve the current situation. To overcome these problems, the author says that India needs to move out of this model of Jugaad and incorporate a more systematic way of innovation.

The government also has to play a major role, which, he says it has not played till date. With the growing population of the country, innovation is imperative if the country has to be self-sufficient. The government has to create critical mass of new and innovative technology driven firms. Small firms in India are considered to be under the control of larger firms and hence the government should bring about a change in policies to support smaller firms work independently.

For anyone concerned about the future of this country and wants to know how innovation will become the sole factor driving the Indian industry forward, this book is a must read.

The book is rich with case studies and expert arguments and gives a good insight into the history of innovation in India, why India has failed to achieve its innovation potential and what can be done in the future.