As India accelerates towards a knowledge-driven economy, collaboration between higher educational institutions (HEIs) and industry must shift from aspiration to action. Industrial research—application-oriented R&D rooted in real-world challenges—can convert our demographic dividend and academic capital into industrial strength. Despite having top institutions, vibrant industries and abundant talent, India’s innovation potential remains under-leveraged.

To change this, university-industry collaboration must be embedded at the core of India’s research and development (R&D) ecosystem. A structured national framework for industrial research within HEIs is now essential; not only to support initiatives like Make in India and Skill India, but to transform India’s translational research capabilities.

Innovation Investment: The Global Context

R&D spending among leading nations highlights India’s lag: Israel (6.3 per cent of GDP), South Korea (5 per cent), Taiwan (4 per cent), USA (3.4 per cent), and China (2.6 per cent). India stands at just 0.7 per cent.

In 2021, of the 1.6 million patents granted globally, China led with 38 per cent, followed by the USA (18 per cent), Japan (16 per cent), South Korea (10 per cent) and Germany (4 per cent).

India’s innovation system needs strategic policy support, sustained investment, and robust academia-industry linkages to catch up.

India’s Policy Momentum

The government is taking commendable steps. The Principal Scientific Adviser’s Office and the Department of Science & Technology are supporting both basic and translational research.

The newly established Anusandhan National Research Foundation (ANRF) is a major step forward. With its cross-ministerial mandate, ANRF aims to streamline funding and strengthen mission-driven research. It also encourages co-location of industrial R&D within HEIs. These are promising developments.

What is needed now is scale, speed and a sustained national effort.

Translating Knowledge into Economic Value

A key measure of success in publicly funded research is its translation into commercially viable products, processes and enterprises. Indian institutions excel in fundamental science but often fall short in bridging the ‘Valley of Death’—Technology Readiness Levels 3 – 7, where many innovations fail to reach the market. Fragmented efforts, lack of coordination and low R&D investment from industry are major constraints.

We must transition from episodic partnerships to institutionalised models that produce joint patents, co-authored publications, shared IP and spinout ventures. A strong innovation pipeline needs structured collaboration, strategic co-funding and shared goals.

The Research Convergence Consortia Model

We propose the creation of university-industry Research Convergence Consortia; neutral, co-located innovation hubs that bring academia and industry together to co-create, co-fund and co-own long-term R&D agendas. These platforms can deliver mission-oriented, sector-specific solutions while promoting open innovation. They would also facilitate industries locating R&D units on academic campuses to access top talent and government-funded infrastructure. Thus, drawing on the strength of both ecosystems and working toward the common goal of nation building.

Such consortia must be aligned with national missions and sectoral priorities to ensure focus and impact.

Prioritising by Innovation Horizon

All sectors will not move at the same pace of innovation. Thus, co-location of industry and academia must be strategically prioritised across three innovation horizons:

Fast-moving sectors: Energy, Health, and ICT where rapid prototyping and deployment cycles demand agile collaboration and quick feedback loops.

Medium-paced sectors: Defence, Automotive, Manufacturing, Tooling, and Environment where breakthrough technologies can dramatically enhance national capabilities.

Long-horizon sectors: Agriculture, Climate and Food Security where sustained, long-term research programs are needed to address grand challenges to safeguard national future and preparedness.

The National Research Convergence Consortia must be adapted to these timelines, with clear objectives and robust evaluation metrics.

Addressing Systemic Bottlenecks

Despite broad consensus on the need for collaboration, progress is hindered by fragmented IP policies, low private R&D investment, inadequate incentives for co-location and a lack of unified platforms.

We must resolve these systemic issues by creating unified data systems, streamlined tech transfer offices and performance-linked incentives for industry-academia partnerships.

Learning from Global Models

International examples can serve as templates. The Munich Centre of Automotive Research, a joint venture between BMW and the Technical University of Munich, is advancing next-gen mobility through co-located, interdisciplinary teams.

Further, the Eli Lilly–Purdue Alliance showcases how deep academia-industry alignment can transform sectors like pharmaceuticals. India must build such indigenous frameworks in EVs, biotech and other priority domains.

It will be remarkable to see an indigenous framework, for e.g. in the mobility and pharma sectors creating skilled talent relevant to Indian norms and goals.

Recommendations for a National Industrial Research Ecosystem

To realise the promise of industrial research in HEIs, India needs a bold and structured approach.

Launch 20 National Research Convergence Consortia: Strategically co-located centres, with a proposed ₹15,000 crore over five years, should serve as platforms for joint R&D and translational innovation.

Integrate CSR & Incentives: Industries that set up labs or research chairs on campuses should receive CSR credits. Co-mentorship models and first rights on IP can encourage deeper engagement.

A potential initiative—”Adopt-a-Campus”—could allow corporations to use CSR funding to establish research labs or innovation centres on university campuses.

Create National Innovation Policy Unit: A dedicated taskforce across Ministries should align regulations, funding and research priorities to promote academia-industry collaboration.

Strengthen Technology Transfer Ecosystems: Every HEI must have a technology transfer office with real-time dashboards for sector-specific collaboration and national visibility.

Empower Academic Leadership: Institutional heads must be incentivised to drive industry engagement, with performance metrics focusing on patents, start-ups and products—not just publications.

Build Global Virtual Alliances: Indian HEIs should partner with top global universities and multinationals to access frontier technologies, talent and best practices.

Define Lifecycles and Review Frameworks: Each consortium should operate on a defined lifecycle (5–10 years), with periodic reviews, reallocation of resources and accountability mechanisms.

In conclusion, India has the world’s third-largest higher education system, strong STEM talent and a growing industrial base. What is missing is alignment between academic research, industrial needs and national priorities.

Structured, long-term, co-located and co-funded partnerships are the way forward. These must be supported by open innovation systems, agile tech transfer offices, and shared infrastructure. Innovation thrives in ecosystems, not silos. When academia and industry work in tandem, guided by a shared purpose, the results can transform the nation.

India stands at the cusp of becoming an innovation powerhouse. With vision, urgency and sustained investment, our HEIs can become engines of industrial transformation for a Viksit Bharat @2047.

Sondhi is former MD & CEO, Ashok Leyland; Verma is a professor at IIT Kanpur. Views expressed are personal

Published on June 19, 2025