However, experts say that MSMEs now need to focus more on differentiation of products to make a mark on the global platform as well. This is where research & development (R&D) comes into the picture.
Dr Satya Gupta, Founder & CEO, EPIC Foundation, says,“Focus on R&D is key to the success of MSMEs, especially the ‘D’ part of R&D, which helps them create innovative and differentiated products. Without differentiated products, it’s difficult for MSMEs to compete on the standard product with the large players. The differentiated innovation may be on technology, product design, efficient manufacturing or on the business model.”
Gupta says innovation is key to success, especially for MSMEs in high-tech product development. India’s MSME sector can learn from the previous experiences where they worked towards the qualitative development of products to make a mark in the domestic circuit.
“Entrepreneurial efforts have resulted in the production of previously imported items, often with enhanced attributes that solve diverse user problems. This success stems from encouraging in-house research & development (R&D) and promoting the qualitative development of products,” says R Narayan, Founder & CEO of Power2SME, and President of FICCI-CMSME.
Register for Regional Summits and the Virtual Conclave of ETRIse World MSME Day 2023.
The government, too, is focusing on increasing the spending on R&D to take India’s manufacturing to a higher level.
According to recent announcements by the Ministry of Science & Technology, India ranks sixth globally in R&D investment. Furthermore, India’s spending on R&D has consistently increased over the past decade, nearly tripling from Rs 39,437.77 crore in financial year 2007-08 to Rs 1,13,825.03 crore in financial year 2017-18, according to the latest Ministry of Science & Technology data.
In August 2002, Chief Economic Advisor V Anantha Nageswaran had said while speaking at a virtual meeting with the Calcutta Chamber of Commerce that India needs to focus on R&D and innovation for long-term benefit. “On a global index, we are very low in R&D spend. Government spending is 52%,” Nageswaran had said, while urging the private sector to also invest more.
Narayan says dedicating resources and efforts to R&D empowers MSMEs to unlock vast possibilities, drive growth, and meet evolving customer demands. “R&D fosters a culture of experimentation, exploration, and learning, enabling MSMEs to develop novel solutions, enhance existing products, and introduce disruptive innovations that revolutionise their industries,” he adds.
source
