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UNIDO and DST launch findings of the National Manufacturing Innovation Survey (NMIS) 2021-22

The findings of the “National Manufacturing Innovation Survey (NMIS) 2021-22”, a joint initiative of the Department of Science and Technology and UNIDO, were released on April 27, 2023.

The National Manufacturing Innovation Survey (NMIS) 2021-22 aimed to assess the innovation performance of manufacturing firms in the India. The study adopted a two-pronged approach, assessing innovation at the firm-level, as well as the sectorial system of innovation in five key sectors: automotive, textiles, pharmaceuticals, ICT and food and beverages. This study is a follow-up of DST’s first National Innovation Survey held in 2011.

The Firm-level survey deployed 3 key dimensions to assess innovation in manufacturing firms: enablers, barriers, and performance. These three dimensions were then used to formulation the Indian Manufacturing Innovation Index (IMII) 2022, as a framework to assess State-wise innovation performance. Karnataka, Dadra and Nagar Havel and Daman and Diu, Telangana and Tamil Nadu emerged as the top ranking states. The firm-level survey found that 25% of manufacturing firms in the country are innovative, and 80% of innovative firms achieved positive business outcomes through innovations, in terms of increased turnover, accessing new market opportunities or responding to market pressures.

The Sectorial System of Innovation (SSI) survey mapped the manufacturing innovation system and its enabling role in achieving innovations in firms. The SSI study measured the interactions between stakeholders of the innovation ecosystem, relative barriers to innovation, as well as the convergence or divergence of current policy instruments in five key manufacturing sectors.

A total of 8,087 firms participated in the firm-level survey, while 5,488 firms and non-firms participated in the SSI survey. Dedicated reports have been produced to capture findings from the assessment of firm-level data and each of the five sectors for which the SSI assessment was done. A summary report with insights for policy makers has also been developed, which highlights the importance of making innovation a strategic objective for manufacturing development; prioritizing and investing sectoral systems of innovations and supporting pre-competitive collaborative industry research and innovation. All reports can be accessed via: http://www.nstmis-dst.org/NMIS/nmis-reports.html

The DST-UNIDO collaboration allowed a 360-degree approach to measuring manufacturing innovation outcomes, processes, and barriers at firm-level, mapping the contributing processes and interactions, and thereby assessing the performance of states, sectors, and firm sizes.

“The National Manufacturing Innovation Survey (NMIS) 2021-22 was undertaken by DST as the Government of India has prioritised enhancing the competitiveness of Indian manufacturing and increasing its share in the GDP,” Dr. Chandrasekhar, Secretary DST, said while launching the reports that encapsulate the findings of and insights from the survey. Dr. Chandrasekhar highlighted that these learnings can add significant value to the Make-in-India programme objective, specifically the Production Linked Incentive (PLI) schemes, positioned to boost manufacturing in a variety of sectors, including electronics, pharmaceuticals, and automobiles, that are already yielding results.

“The NMIS survey shows that innovation is not yet common in manufacturing but has proved to be profitable for firms. Focus on manufacturing innovation is needed in addition to expanding production,” said Dr. René Van Berkel, UNIDO Representative & Head, Regional Office in India.

The findings of the NMIS 2021-2022 serve as a valuable resource to policymakers, researchers, and practitioners in the field of manufacturing, innovation, and economic development. The report highlights the enabling factors and barriers to innovation in the manufacturing sector and provides valuable insights for strengthening the ecosystem for science, technology, and innovation in India. The recommendations contained in this report will not only contribute to the development of national policies and initiatives but can also guide other countries in the region on ways to foster a more innovative and dynamic manufacturing sector.