Addressing captains of industry from south India in Chennai recently, Union Home Minister,Mr P. Chidambaram, mentioned three important deficits that India Inc needs to pay attention to — regulatory, governance and ethical deficits — in order to ensure8-10 per cent annual growth in the coming years.Apart from not defining the Government's role in erasing these deficits, the Minister failed to mention yet another important deficit — namely, the innovation deficit that Indian industries face despite the economic liberalisation that began in 1991.
And yet, this deficit has perhaps the maximum strategic implications for the industrial productivity and global competitiveness essential for economic growth.
That the economic status of a country has a direct bearing on the level of innovation prevailing in it is obvious from the fact that the US, which for several years (until 2007) occupied the No. 1 position, slipped to No. 11 following the economic downturn from 2007 to 2010, according to a report from the international business school INSEAD in Fontainbleu, Paris.
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