Indian companies significantly lag behind their global counterparts in patent output, according to a recent study by the Foundation for Advancing Science and Technology (FAST India) in collaboration with IIFL Securities. The report highlights a striking disparity, showing that global firms produce 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 significant performance comparable to 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 stated.
The report further observed 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 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 percent R&D intensity. 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 percent 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 among Indian firms, securing ninth place overall.
Highlighting the need to focus on R&D, the report suggested an enhanced focus of Indian companies to compete on the global stage.
