In the beginning of 2010, the Indian Government formally declared 2010 �€“ 2020 as the �€œDecade of Innovation�€. There is a multitude of activity, both happening as well as planned, in the innovation sphere in India, in which certain salient features stand out and are worth examining. These features may well determine the degree of success India achieves in the next few decades in realizing its goal of becoming one of the leading knowledge economies in the world. 

One of the key characteristics of the successful innovations coming out of India is that they are primarily low cost and geared towards increased accessibility by poor populations in developing and low income countries. While the concept of catering to the �€œbottom of the pyramid�€ has been made famous by Dr. C.K. Prahalad in recent years, there are also historical examples of affordable inventions emerging from India. A case in point would be the �€œJaipur Foot�€ which radically transformed the design of artificial limbs when it was first introduced in 1968. The Jaipur Foot was the first low cost prosthetic leg in the world and presently costs approximately USD 35, as compared to the starting cost of about USD 6000 of other artificial limbs in developed countries. Economical pricing has vastly improved the accessibility of the under privileged to a high quality prosthetic leg. 

More recently, the Jaipur Foot Group co-developed the Jaipur Knee along with a team of engineering students from Stanford which costs only USD 20. The Jaipur Knee appeared as one of the Top 50 Inventions of 2009 in Time Magazine and is presently being tested in India. A low cost knee has the potential of increasing the quality of life of less privileged patients, especially considering the fact that a titanium knee replacement costs approximately USD 10,000. 

Other recent examples of low cost products launched by India include the ChotuKool, one of the world�€™s cheapest refrigerators, targeted at poor populations in rural areas without access to electricity, and the Nano, a car costing USD 2000.  

Another interesting trend is that although the focus and investment in scientific R & D is across various fields including nanotechnology, clean and renewable energy, amongst others, however recent key accomplishments have been largely in Life Sciences. In the eleventh plan (2007-2012), the central government announced investments worth USD 1.5 billion in bio-technologies, which is much higher to the USD 250 million being invested over the same 5 year period in nano �€“ technology.

In the past, India has positioned itself as a low cost medical tourist destination and Indian pharmaceutical companies have been successful in manufacturing low cost generic drugs. There has also been an increase in the rollout of Information and Communication Technologies (ICTs) pertaining to healthcare and medicine, particularly in rural India. Viewed together with the above developments, this may be an indication that in the days to come we may witness more successful innovations in Life Sciences and related applications, in comparison to other fields, from India. 

A key point to look out for will be the evolution and success of innovation hubs in India. Almost every country has a high-tech geographical cluster which drives innovation, prime example being the Silicon Valley in USA. Bangalore, in Southern India, has become famous as a low cost IT offshore hub. Will it progress and be known as a centre of innovation in emerging technologies? In the �€œInnovation Heat Map�€ co-developed by Mckinsey and World Economic Forum, Bangalore has been classified as a �€œHot Spring�€ which means that it is presently a small, fast growing hub, on track to become a world player. Many Indian private companies, working on cutting edge research, are based in Bangalore. 

Other cities to watch out for are Hyderabad and a 5,000 acre innovation park planned on the outskirts of Mumbai. The National Innovation Act 2008, presently in draft stage, also suggests setting up special innovation zones in different sectors across India. 

However the challenge for India now is to look beyond its current strengths of cost reduction, process innovation and adaptation. According to World Intellectual Property Organization, India filed only 761 applications for patents in 2009, accounting for 0.5 % of the global total. This is far behind the approximate 8,000 applications filed each by China and South Korea. Therefore India is clearly lagging behind in original cutting �€“ edge breakthroughs. 

While the government has stepped up its efforts to address issues plaguing scientific R & D, the private sector is also paying heed. The Confederation of Indian Industry recently came out with a call encouraging the Indian private sector to increase investments in R & D to 4-5 % of their gross revenues; a huge increase from the measly 0.54 % that is presently invested. 

India�€™s existing strengths therefore include developing low cost products, adapting research happening elsewhere and capitalizing on prevalent traditional practices. These may aid tapping markets in developing and low-income countries. These features may also be an asset in attracting goodwill and promoting South- South cooperation. But are these strengths enough to match up to more drastic breakthroughs emerging from countries such as USA, Israel, and Japan? Will these strengths enable India to overtake China and South Korea in the patent race? How many Indian innovations will find a market in developed countries? These are some questions which India needs to answer in its quest to become a leading innovation driven economy. 

The 2010 - 2020 �€œDecade of Innovation�€ provides Indian policymakers with an opportunity to carefully assess the current approach and evaluate whether a shift in strategy is needed. This self-introspection could go a long way in propelling India�€™s growth in the next few decades.