The National Manufacturing Innovation Survey (NMIS) 2021-22

The National Manufacturing Innovation Survey (NMIS) 2021-22: Summary for Policymakers has been released by the secretary of the Department of Science and Technology, which falls under the Ministry of Science & Technology.

About National Manufacturing Innovation Survey (NMIS)

• The National Manufacturing Innovation Survey is a joint study by the Department of Science and Technology (DST) and the United Nations Industrial Development Organization (UNIDO).
• The survey aims to evaluate the innovation capabilities and performance of manufacturing firms in India.
• The survey aims to collect data on various aspects related to innovation in manufacturing, including R&D investment, innovation processes, technology adoption, and intellectual property management. The survey results are used to develop policies and programs to enhance the innovation capabilities of Indian manufacturing firms and make them more competitive in the global market.
• It consists of two specific components: a firm-level survey and a Sectorial System of Innovation (SSI) survey.
  • The firm-level survey captures data related to types of innovations and innovative measures taken by firms, including the process of innovation, access to finance, resources, and information for innovation, among others.
  • The SSI survey maps the manufacturing innovation system and its enabling role in achieving innovations in firms.
  • The SSI study measures the convergence or divergence of current policy instruments in select five key manufacturing sectors important to the Indian economy – textiles, food & beverage, automotive, pharma, and ICT.
• The first National Innovation Survey was held in 2011.

Key Findings of The National Manufacturing Innovation Survey (NMIS) 2021-22

• DST ranked states based on their innovation performance, with Karnataka being the highest followed by Telangana, Tamil Nadu, Maharashtra, and Haryana.
• Uttarakhand was the highest scoring among the hill states, and Dadra and Nagar Haveli and Daman and Diu (DNH&DD) had the highest scoring among UTs.
• Jharkhand, Odisha, and Andhra Pradesh were among the low-performing states, except for the Northeastern states.
• Telangana, Karnataka, and Tamil Nadu had the highest share of innovative firms among the total manufacturing firms surveyed from the respective states.
• Odisha, Bihar, and Jharkhand had the least share of innovative firms.
• Nearly 75% of the surveyed firms did not make any innovative product or process innovation, most of which were micro, small, and medium enterprises (MSME).
• However, the firms that did report significant gains, such as expanding markets and reducing production costs, accounted for nearly 80% of the total surveyed.
• The survey found that the lack of internal funds, high innovation costs, and lack of financing from external sources were the most frequent barriers to innovation.
• Gujarat and DNH&DD reported the highest frequencies of barriers to innovation, despite being among India’s most industrialized states.
• The survey is significant as it will help in the Make-in-India program, specifically the Production Linked Incentive (PLI) schemes.
• It will boost manufacturing in various sectors, including electronics, pharmaceuticals, and automobiles.

About The United Nations Industrial Development Organization

• The United Nations Industrial Development Organization (UNIDO) is a specialized agency of the United Nations.
• Its main objective is to promote, accelerate, and strengthen industrial development worldwide.
• UNIDO has four key functions: technical cooperation, policy advice, standards-setting, and partnership building for knowledge transfer.
• UNIDO has 171 member states, and India is one of them.

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