A homegrown innovation ecosystem is taking root

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Technologies that once arrived in India through imports are increasingly being invented at home through local research institutions, industry, and startups. Three institutional foundations of an innovation economy are now advancing together: public research, corporate research and development (R&D), and deep-tech entrepreneurship. The transformation is yet incomplete, but the architecture is finally visible. Gallium Nitride (GaN) semiconductor technologies, critical for advanced radar, space systems, and next-generation communications, are increasingly being developed domestically, helping close a strategic gap in a tightly regulated, export-controlled field. At the same time, affordable immunotherapies developed in India are expanding access to advanced cancer care and demonstrating the country’s growing capacity for biomedical innovation.

Patent filings are often cited as a ready indicator of innovation. The filing numbers continue to show impressive growth. From just over 1,10,000 patent filings in 2024-25, the number grew to more than 1,43,000 in 2025-26, a 30.2% increase. Moreover, domestic applicants now account for almost seven in 10 filings.

However, the sheer volume of applications does not tell the complete story. Even a modest enquiry reveals an innovation story that begins to fray at the edges. The number of patents in force in India (just over 2,40,000 in 2025) is a fraction of those in China (5.7 million), the United States (3.5 million), and Japan (2.1 million); all these are 2024 data.

This suggests low grant rates, high abandonment rates, or a combination of both. Add to this meagre commercialisation, low R&D spending — India still spends just under 1% of GDP on research and development, against about 2.4% in China and 3.5% in the U.S. — and we see how far we are from a truly technology-driven, innovation-led economy.

However, there lies a resilient core, and shaping it are three strong and vital strands that promise to anchor India’s future. Public institutions with government support have made vital breakthroughs in long-gestation innovation. Private R&D spending exceeded that of all levels of government combined for the first time in 2024. This is expected to climb and account for 55% through 2025-26. Domestic industrial houses are beginning to reap rewards from focused and committed R&D. A maturing startup ecosystem is finding its feet beyond low-hanging service platforms, actively showcasing deep tech and complex manufacturing. That all three strands are coming of age together bodes well for India.

Editorial | Innovate or be eaten: On India and an innovative ecosystem

In March 2023, Defence Research and Development Organisation (DRDO) scientists at the Solid State Physics Laboratory (SSPL) in Delhi and the Gallium Arsenide Enabling Technology Centre (GAETEC) in Hyderabad announced a breakthrough in making gallium nitride (GaN) monolithic microwave integrated circuits (MMICs).