3 min readNew DelhiJan 21, 2021 08:10 AM IST
First published on: Jan 21, 2021 at 01:50 AM IST
Karnataka has been ranked the most innovative among major states by the NITI Aayog while Delhi topped the category among Union Territories. Delhi also stood out as the top performer among both states and UTs.
These rankings were part of NITI Aayog’s India Innovation Index Report 2020, released by Vice Chairman Rajiv Kumar. The exercise was initiated in 2019 and is on the lines of the Global Innovation Index (GII), which ranks countries annually.
The framework of the index includes globally considered parameters for measuring innovation, such as the percentage of GDP spent on research and development, while keeping them specific to the Indian economy.
In 2015, India ranked 81 among 141 countries in the GII. By 2020 it ranked 48 among 131 countries.
Amit Kapoor, honorary Chairman of the Institute for Competitiveness, that carried out the study on behalf of the Niti Aayog, Wednesday said there were a number of areas in which India needed to improve to meet global competitiveness in innovation, including increased expenditure in R&D by the private sector. “The Indian government is a major spender in R&D, while the investment of the private sector is very low. Compare this to Israel where private companies account for 70 per cent of private investment in R&D,’’he said. In 2017-18, the Indian government had the lion’s share of investment in R&D at 41 per cent.
India also spends only 0.7 per cent of its GDP on R&D, much lower than the top spenders such as Israel (4.95 per cent).
Kapoor pointed out a North-South divide in the findings of the report, with the southern states having fared much better. “We have also found a link that as states become more innovative, they have higher per capita GDP,’’ he said Wednesday.
The Innovation Index is divided in to three categories—major states, Union Territories, and hill and North East states.
Delhi has scored the highest on the index in the country with a score of 46.6, while Lakshwadeep has the lowest score at 11.7. Delhi recorded the highest number of trademark and patent applications, along with the establishment of new start-ups and companies in the last financial year.
Amongst the major states, Karnataka topped with a score of 42.5 for the second year running. The state’s success has been attributed to a high number of venture capital deals, registered GIs and ICT exports, and high FDI inflow.
Maharashtra follows with a score of 38, while Bihar finishes last at 14.5. Four southern states – Karnataka, Tamil Nadu, Telangana and Kerala —occupy the top positions on the index, apart from Maharashtra.
Amongst North East and hill states, Himachal Pradesh has the highest score of 25.
The indicators that the survey uses includes the level and quality of education especially in research, number of PhD students, enrolment in engineering and technology, number of highly skilled professionals, investment in R&D, FDI inflows, internet subscribers, knowledge-intensive employment, number of patents and trademark applications filed, business environment, and safety and legal environment, among others.
The framework of the index includes globally considered parameters for measuring innovation, such as the percentage of GDP spent on research and development, while keeping them specific to the Indian economy. 
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