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Harnessing India's Technological Potential (WSJ, 5/27/09) |
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June 06, 2009 |
Over the last decade, clean technology and nanotechnology have emerged as prominent investment themes in venture capital.
Rajeev Mantri
According to New York-based research firm Lux Research, venture capital investment in cleantech and nanotech has grown at about 40% annually since 1997. Rapid advances in the physical sciences and materials engineering have ushered in everything from hybrid-electric cars and lighter airplanes with substantially enhanced fuel efficiency to eco-friendly specialty chemicals and stain-resistant apparel.
As China and India industrialize, there is a glaring need for such innovation to ensure that limited natural resources are consumed with high efficiency. Venture capitalists have a key role to play in fostering that innovation.
VCs typically consider India to be just a technology deployment market. That view is too narrow: India has not just the entrepreneurial competence but also the scientific talent to invent and lead in science-driven innovation.
“Profit is still a dirty word in India's academic circles.”
The American model for technology commercialization has proven to be highly successful. Corporate giants such as Hewlett-Packard, Genentech and Google took root at universities.
More recently, President Barack Obama unveiled the government's biggest infrastructure investment plan since the creation of the U.S. highway system with energy efficiency as its cornerstone.
Prof. C. N. R. Rao, chairman of the Prime Minister's Scientific Advisory Council and one of India's most distinguished scientists, has worked tirelessly for the cause of science education and research, recently obtaining a grant of over $200 million from the central government for fundamental research in materials science and nanotechnology. When I met him in July last year, he lamented the lack of enthusiasm for science and technology in India, and commended China's nationalist zeal for building prowess in high-technology.
There is no dearth of scientific ability in India, but Indians prefer to work in laboratories abroad thanks to the lack of cutting-edge infrastructure in their home country. What's missing here are incentives for innovation and entrepreneurship.
The Indian government has promoted investment in renewable energy sources such as solar and wind, and these sectors are beginning to see some traction. However, India is still way behind both the U.S. and China.
http://online.wsj.com/article/SB124356990579365637.html?mod=googlenews_wsj
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