National Manufacturing Innovation Survey (NMIS) 2021-22

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•  “National Manufacturing Innovation Survey (NMIS) 2021-22” is being releases 

What is NMIS Survey?

• NMIS 2021-22 is a joint study by the Department of Science and Technology (DST) and the United Nations Industrial Development Organization (UNIDO) to evaluate the innovation performance of manufacturing firms in India.
• This study is a follow-up of DST’s first National Innovation Survey held in 2011.
• The NMIS 2021-22 survey had two specific components: the firm-level survey and the sectoral systems of innovation (SSI) survey
• The study was not designed to assess the effectiveness of specific policies individually or collectively

Major Findings of the report

• 25.01% of the 8,074 firms surveyed were considered innovative

• Of the 25% firms reporting innovations in the survey, 83% had increased turnover, 80% opened new market opportunities

• Only 15% of micro firms are innovative while it is 56% in large firms.

• More than 45% of firms reported that the most frequent barrier was the lack of funds within the firm or group, followed by high innovation costs (40.30%) and the lack of finance from external sources (39.52%).
• Most critical barriers were low demand for innovations in the market (71.23%).
• Firms with staff using innovative tools, an Industry 4.0 strategy, an R&D strategy have better innovation performance

India Manufacturing Innovation Index 2022

• The responses obtained from the firm level survey have been converted into an IMII index.
• The IMII provides a holistic index score for the level of innovation across states, taking into consideration innovation output through performance, and innovation input through the presence of innovation enablers and the absence of innovation barriers.
• All 28 states and 6 union territories were ranked based on their IMII scores. Category ranks were also provided to the states and UTs post their classification into three groups: major (larger) states; hill states; and UT or city states.
• The state of Karnataka ranked highest on IMII 2022 and the lowest was North-eastern states (excluding Assam)
• The construct of the IMII allows for comparison with other innovation assessments particularly the Global Innovation Index (GII) and the India Innovation Index (III).

Triple-Helix model

• Focuses on the relationships between universities and knowledge-based institutions (KBIs), firms, governments, and hybrid organisations at the intersection of these three helices.

NMIS Policy Directions

• ‘Innovate to Make in India’ as a manufacturing innovation strategy – include broad-based awareness, promotional measures and investment incentives, along with sectorial sub-strategies with concrete innovation targets or roadmaps.
• Make SSI a policy objective for handholding and incentivising the system of innovation and collaborations to strengthen manufacturing innovation and ecosystem by fostering the development and sharing of best practices.
• Support pre-competitive, collaborative industry focused research and innovation–   R&D programmes for large-scale and long-term funding allocation for precompetitive industry-focused research and innovations, where collaboration can be mandated as a qualifying criterion for accessing any research grant.
• Enhance state government participation for fostering innovation in MSMEs.
• Implement innovation-linked incentive to help firms, especially MSMEs, to address the financial risks linked to innovation uncertainty.
• Support firms to mitigate innovation-related risks – both fiscal and non-fiscal measures to encourage firms to take calculated risks and engage in innovation
• Increase private sector innovation investment through crowding-in.

Source: PIB