Context
India is gradually moving from being primarily a technology adopter towards becoming a technology creator.
This transition is visible across semiconductors, space technology, advanced healthcare, telecommunications and artificial intelligence.
India has therefore created important foundations for an innovation-led economy, but the major challenge is converting scientific capability into scalable technologies and sustained economic value.
Architecture of India’s Innovation Ecosystem
India’s innovation ecosystem rests on three complementary pillars.
Public Research and Universities
Public laboratories and universities undertake long-term and high-risk research while creating:
- scientific knowledge;
- skilled researchers;
- laboratories;
- early-stage technologies.
Private-Sector R&D
Companies contribute:
- investment;
- product engineering;
- manufacturing capacity;
- access to domestic and global markets.
Deep-Tech Entrepreneurship
Startups bridge the gap between research institutions and commercial markets by converting scientific discoveries into products.
Therefore:
Research institutions generate knowledge → Industry builds scale → Startups accelerate commercialisation
The strength of the ecosystem depends on how effectively these actors interact.
Patent Growth: Expanding Knowledge Creation
India recorded more than 1.43 lakh patent filings in 2025–26, representing strong growth over the previous year.
A large share of these applications now comes from domestic applicants, indicating rising participation by Indian researchers, companies and institutions.
However, patent filings measure innovation activity, not necessarily innovation outcomes.
India still has far fewer patents in force than leading innovation economies such as China, the United States and Japan.
The challenge is to improve the quality and utilisation of intellectual property, not merely increase filing numbers.
GaN Technology: Converting Research into Strategic Capability
India’s development of indigenous GaN capabilities demonstrates how domestic research can reduce dependence on strategically sensitive foreign technologies.
The emergence of AGNIT Semiconductors, originating from IISc-linked research, illustrates the complete innovation pathway:
Academic research → Indigenous technology → Startup formation → Commercial application
The larger significance is technological sovereignty—the ability to develop and control strategically important technologies domestically.
Gallium Nitride (GaN) is a semiconductor material suited to high-frequency and high-power electronic applications.
It is important for:
- advanced radar;
- defence electronics;
- satellite and space systems;
- 5G/6G infrastructure;
- power electronics.
From Technology User to Standard Setter
Innovation leadership also depends on influencing the technical standards governing future technologies.
Through initiatives such as the Bharat 6G Alliance, India is seeking greater participation in global 6G research, patents and standard-setting.
This matters because global standards influence:
- which technologies become widely adopted;
- ownership of standard-essential patents;
- future licensing revenues;
- long-term market power.
India’s ambition must therefore extend beyond manufacturing foreign-designed technologies towards helping define the technologies that global markets use.
Deep-Tech Startups: Expanding the Commercial Frontier
India’s startup ecosystem is increasingly moving beyond conventional digital platforms towards science-intensive and engineering-intensive sectors.
Examples include:
- Pixxel — hyperspectral Earth-observation satellites;
- Skyroot Aerospace — indigenous launch vehicles;
- Agnikul Cosmos — private launch technology and advanced rocket-engine development.
These companies operate differently from conventional software startups because deep-tech innovation involves:
- long development cycles;
- high capital requirements;
- extensive testing;
- substantial technological uncertainty.
Their growth therefore depends on patient capital, specialised infrastructure and long-term policy support.
Healthcare Innovation: Technology for Affordability and Access
India’s innovation ecosystem is also adapting frontier technologies to domestic social needs.
NexCAR19
India’s indigenous CAR-T cell therapy, NexCAR19, demonstrates the possibility of developing advanced cancer therapies within the domestic research ecosystem.
Its significance lies not only in technological sophistication but also in improving the possibility of more affordable access to frontier treatment.
AI-Enabled Retinal Screening
Indian companies such as Remidio use smartphone-based retinal imaging combined with artificial intelligence to support screening for conditions such as diabetic retinopathy and glaucoma.
This reflects an important Indian innovation model:
Advanced technology + Lower infrastructure requirement + Wider accessibility
India can therefore create competitive advantage not only through frontier science but also through frugal and scalable innovation.
The Core Weakness: Research-to-Market Conversion
India’s central innovation challenge lies between scientific discovery and commercial scale.
The difficult transition is:
Research → Prototype → Validation → Manufacturing → First customer → Scale
Several structural constraints weaken this pathway.
Low R&D Intensity
India continues to spend less than 1% of GDP on R&D, limiting the scale of sustained high-risk research.
Weak Technology Transfer
Universities and laboratories often generate valuable research, but mechanisms for:
- licensing;
- industry collaboration;
- IP management;
- startup creation
remain uneven.
Patient-Capital Deficit
Deep-tech companies often require years of development before generating revenue, making conventional short-term venture financing unsuitable.
Scale-Up Infrastructure Gap
Innovators may develop successful prototypes but still lack:
- pilot manufacturing facilities;
- testing laboratories;
- certification support;
- fabrication infrastructure.
First-Customer Problem
Even technically successful indigenous products may struggle to find early buyers, preventing technologies from achieving commercial scale.
What Should India Focus On?
Increase R&D Investment
India needs higher public and private R&D expenditure, particularly in high-risk and strategically important technologies.
Professionalise Technology Transfer
Research institutions should strengthen dedicated systems for:
IP management → Licensing → Startup creation → Industry partnerships
Expand Patient Capital
Dedicated deep-tech funds should match the long development cycles of semiconductor, biotechnology, space and advanced manufacturing ventures.
Build Shared Technology Infrastructure
Common testing facilities, pilot plants, fabrication centres and certification platforms can reduce the cost of scaling innovation.
Use Public Procurement Strategically
Government can become an early customer for proven indigenous technologies in:
- defence;
- healthcare;
- space;
- energy;
- digital infrastructure.
This can help solve the first-customer problem and accelerate commercial adoption.
FAQs
Q1. What are the three pillars of India’s innovation ecosystem?
Public research, private-sector R&D and deep-tech entrepreneurship.
Q2. Why are patent filings alone insufficient to measure innovation?
Because patents create economic value only when they lead to usable technologies, products and commercial adoption.
Q3. Why is GaN technology strategically important for India?
It supports advanced applications in defence, communications, space and power electronics, reducing dependence on sensitive foreign technologies.
Q4. Why are deep-tech startups different from conventional startups?
They require longer development cycles, greater capital, specialised infrastructure and extensive technological validation.
Q5. What is India’s biggest innovation challenge?
Bridging the research-to-market gap between scientific capability and scalable commercial production.
