National Manufacturing Innovation Survey (NMIS) 2021-22 findings released, can help enhance competitiveness of Indian manufacturing

Source: The post is based on the article “National Manufacturing Innovation Survey (NMIS) 2021-22 findings released, can help enhance competitiveness of Indian manufacturing” published in PIB on 1st May 2023

What is the News?

The Department of Science and Technology has released the “National Manufacturing Innovation Survey (NMIS) 2021-22: Summary for Policymakers”.

What is the National Manufacturing Innovation Survey (NMIS) 2021-22?

Conducted by: It is a joint study conducted by the Department of Science and Technology (DST) and the United Nations Industrial Development Organization (UNIDO).

Aim: To measure and map innovation activities, capabilities, linkages, outputs, outcomes, and barriers to assist DST in developing robust analytical frameworks for measuring firm-level innovations and the sectoral systems of innovation.

Components: NMIS had two specific components: the firm-level survey and the sectoral systems of innovation (SSI) survey.

What are the major findings of the NMIS survey?

25% of the 8,074 firms surveyed were considered innovative. Among them, only 15% of micro firms are innovative while it is 56% in large firms.

Most of the barriers reported by the firms were:  low demand for innovations in the market, lack of funds within the firm or group, high innovation costs and the lack of finance from external sources.

India Manufacturing Innovation Index(IMII) 2022: The responses obtained from the firm-level survey have been converted into an IMII index.

– The index provides a holistic 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.

– The state of Karnataka was ranked the highest on IMII 2022 followed by Dadra & Nagar Haveli and Daman & Diu, Telangana and Tamil Nadu.

– Low-scoring states are North-eastern states, Odisha and Andhra Pradesh.

What are the recommendations given by NMIS 2021-22?

– ‘Innovate to Make in India’ as a manufacturing innovation strategy: This should include broad-based awareness, promotional measures and investment incentives, along with sectorial sub-strategies with concrete innovation targets or roadmaps.

– Make sectoral systems of innovation (SSI) a policy objective for handholding and incentivising the system of innovation and collaborations to strengthen manufacturing innovation and ecosystem 

– Support pre-competitive, collaborative industry-focused research and innovation.

– Enhance state government participation for fostering innovation in MSMEs.

– Implement innovation-linked incentives to help firms, especially MSMEs, to address the financial risks linked to innovation uncertainty.

– Support firms to mitigate innovation-related risks.

– Increase private sector innovation investment through crowding-in.