A recent study by the Foundation for Advancing Science and Technology (FAST India report) in collaboration with IIFL Securities has uncovered a significant disparity between Indian companies and their global counterparts in terms of patent output. The report reveals that global firms generate 14.1 times the number of patents per billion USD revenue compared to Indian firms.
Despite the overall lag, a few Indian companies have demonstrated impressive performance on the global stage. Notable examples include PI Industries, UPL, and SRF, which have shown competitive patent output relative to their global peers.
The study ranks the top firms globally based on patents per revenue, with Korean chemical giant LG Chem leading the pack. LG Chem’s patent output is 2.6 times that of Swiss multinational Sika AG, which ranks second. This global dominance highlights a substantial gap that Indian companies need to bridge. The report emphasizes that while Indian firms are competitive in terms of input parameters, there is a significant gap in patents and publications per revenue, underscoring the need for increased focus on innovation and intellectual property.
The report also notes that global firms produce 3.4 times more publications per billion USD revenue than Indian companies. Among Indian firms, Tata Chemicals stands out, ranking highest in publications by revenue and fourth overall. Although Asian Paints has a higher absolute number of publications, it ranks 11th overall in publications by revenue.
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 study also examines R&D intensity, where the American agricultural chemical and seed company Corteva ranks first with an impressive 7.0 percent R&D intensity. PI Industries is the only Indian firm among the top five in this category, ranking second overall with a 1.1 percent R&D intensity. SRF follows as the second-highest Indian firm, ranking seventh overall.
In terms of patents per billion USD revenue, UPL is the highest-ranked Indian firm, securing ninth place overall. The FAST India report highlights the need for Indian companies to enhance their focus on R&D and innovation to compete more effectively on the global stage.