Indian Companies Lag in Patents Compared to Global Firms, Says Study
A recent study by the Foundation for Advancing Science and Technology (FAST India) in collaboration with IIFL Securities reveals that Indian companies significantly lag behind their global counterparts in patent output. The report highlights that global firms produce 14.1 times the number of patents per billion USD revenue compared to Indian firms.
However, some Indian companies like PI Industries, UPL, and SRF are performing well on the global stage. The study ranks the top firms globally based on patents by revenue, with Korean chemical company LG Chem topping the list. LG Chem’s patent output is 2.6 times that of Swiss multinational firm Sika AG, which ranks second.
The report also notes that global firms produce 3.4 times more publications per billion USD revenue than Indian firms. Among Indian companies, Tata Chemicals ranks the highest in publications by revenue and fourth overall. Despite Asian Paints having a higher absolute number of publications, it ranks 11th overall in publications by revenue.
In terms of R&D intensity, the American agricultural chemical and seed company Corteva ranks first with a 7.0% R&D intensity. Among Indian firms, PI Industries ranks second overall with a 1.1% R&D intensity, followed by SRF, which ranks seventh overall.
In the patents per billion USD revenue category, UPL is the highest-ranked Indian firm, securing ninth place overall. The report emphasizes the need for Indian companies to focus more on R&D to compete globally.
Doubts Revealed
Patents -: A patent is a special right given to an inventor to make, use, or sell their invention for a certain number of years. It helps protect their ideas from being copied by others.
Foundation for Advancing Science and Technology (FAST India) -: FAST India is an organization that works to improve science and technology in India. They conduct studies and provide insights to help the country grow in these fields.
IIFL Securities -: IIFL Securities is a company in India that provides financial services like stock trading and investment advice. They help people and businesses manage their money.
PI Industries -: PI Industries is an Indian company that makes chemicals for agriculture. They help farmers grow crops by providing products like pesticides and fertilizers.
UPL -: UPL is an Indian company that also makes agricultural chemicals. They work to help farmers protect their crops from pests and diseases.
SRF -: SRF is an Indian company that makes a variety of products, including chemicals, packaging films, and textiles. They serve different industries with their products.
Tata Chemicals -: Tata Chemicals is an Indian company that makes chemicals used in everyday products like salt, soda ash, and fertilizers. They are part of the Tata Group, a big business group in India.
R&D -: R&D stands for Research and Development. It is the process of creating new products or improving existing ones through scientific research and experiments.