New Delhi [India], July 21 : Indian companies significantly lag behind their global counterparts in patent output, a recent study by the Foundation for Advancing Science and Technology (FAST India) in collaboration with IIFL Securities revealed.
The report highlights the striking disparity, with global firms producing 14.1 times the number of patents per billion USD revenue compared to Indian firms.
However, the report noted that a few Indian companies are performing well on the global stage. Companies like PI Industries, UPL, and SRF have shown a significant performance as par with the global firms in terms of patents by revenue.
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.
This dominance by global firms indicates a substantial gap that Indian firms need to bridge. "While Indian firms are competitive with global firms in input parameters, there
is still a substantial gap in patents and publications per revenue, highlighting the need for increased focus on innovation and intellectual property," the report added.
The report further observed that global firms produce 3.4 times more publications per billion USD revenue than Indian firms.
Among the Indian companies, Tata Chemicals ranks the highest in publications by revenue among Indian firms and fourth overall, showing an impressive performance. Despite Asian Paints having a higher absolute number of publications, it ranks 11th overall in publications by revenue, as per the report.
The American food safety company, Ecolab leads globally in publications per billion USD revenue, with 77 publications. Among Indian firms, Tata Chemicals tops the list with 36 publications per revenue.
The report also highlights R&D intensity, where the American agricultural chemical and seed company, Corteva ranks first with an impressive 7.0 per cent R&D intensity, as per the report.
Among the top five ranked firms in R&D intensity, PI Industries is the only Indian firm, ranking second overall and demonstrating high innovation with a 1.1 per cent R&D intensity. SRF follows as the second-highest Indian firm in R&D intensity, ranking seventh overall.
In the patents per billion USD revenue category, UPL ranked highest in Indian firm securing ninth place overall.
Highlighting the need to focus on R&D, the report suggested the enhanced focus of companies to complete at the global stage.
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