News Brief
Explained: Why Karnataka Is India’s Most Innovative State
A screenshot from NITI Aayog’s report on India Innovation Index 2020 released recently (Source: https://niti.gov.in/sites/default/files/2021-01/IndiaInnovationReport2020Book.pdf)
The second edition of the NITI Aayog’s India Innovation Index 2020 is out. Southern states have topped the charts with flying colours.
Kerala moved up a notch to the fifth spot. Telangana occupies the fourth spot, while Maharashtra pipped Tamil Nadu to the second spot. Karnataka has topped for the second time in a row. They were followed by Haryana, Andhra Pradesh, Gujarat, Uttar Pradesh and Punjab in that order.
Under the ‘North-Eastern/Hill States’ category, Himachal Pradesh moved up from the second position to emerge as the top ranker this year, while 2019’s top performer (in this category), Sikkim, slipped down to the fourth position.
About the Index
NITI Aayog, along with the Institute for Competitiveness, today released the second edition of the India Innovation Index.
The innovation inputs were measured through five enabler parameters:
- Knowledge Output
- Knowledge Diffusion
Why Karnataka tops
Karnataka ranks first in performance indicators and third in enablers.
It ranks first in Investment, third in Human Capital, second in Knowledge Workers and eighth in Business Environment. In Safety and Legal Environment, Karnataka ranks 16th. In Knowledge Output and Knowledge Diffusion, Karnataka ranks third and first respectively. Its score is exceptionally high in the latter - 20 percentage points higher than the second place holder Tamil Nadu - which gives it an overall lead.
Karnataka’s rank is attributable to its substantive number of venture capital deals, registered geographical indicators and information and communications technology (ICT) exports. Karnataka’s high Foreign Direct Investment (FDI) inflow has also enhanced the innovation capabilities of the state, the NITI Aayog report states.
Karnataka scores a full 100 on the following: Geographical indicators, ICT exports, venture capital deals; and above 90 on pupil teacher ratio in higher education, and National Assessment Score (Class X).
Karnataka overperformed (relative to GDP and population) in private as well as state funded research and development (R&D) units, however, scored below 50. The state government also needs to increase its expenditure on R&D.
According to the report, Karnataka underperforms in grassroots innovation, trademark and industrial design applications, and even presence of startups and new businesses registered for its population and GDP.
Karnataka also needs to improve its high tech and medium high tech manufacturing industries.
What can states do?
All the states can learn from others on some indicators while be a role model for others on certain others. As we saw above, Karnataka, the top ranker, also has a long way to go regarding some indicators. Chandigarh, on the other hand, has outperformed the other states in four indicators of Human Capital, Knowledge Workers and Safety and Legal Environment, but has underperformed in Knowledge Diffusion.
The index can be used as an actionable tool for policymakers to recognize challenges and address them.
Introducing ElectionsHQ + 50 Ground Reports Project
The 2024 elections might seem easy to guess, but there are some important questions that shouldn't be missed.
Do freebies still sway voters? Do people prioritise infrastructure when voting? How will Punjab vote?
The answers to these questions provide great insights into where we, as a country, are headed in the years to come.
Swarajya is starting a project with an aim to do 50 solid ground stories and a smart commentary service on WhatsApp, a one-of-a-kind. We'd love your support during this election season.
Click below to contribute.
Latest
