According to the National Manufacturing Innovation Survey (NMIS) 2021-22, Karnataka, overall, is the most “innovative” State, as far as the degree of innovation among manufacturing firms concerned.
- Karnataka is followed by Dadra and Nagar Haveli, Daman and Diu (DNH&DD), Telangana, and Tamil Nadu.
- NMIS is a joint study by the Department of Science and Technology (DST) and the United Nations Industrial Development Organization (UNIDO),.
- Telangana, Karnataka, and Tamil Nadu had the highest share of innovative firms at 46.18% ,39.10% and 31.90%, respectively, with Odisha, Bihar, and Jharkhand reporting the lowest share of such firms at 12.78%, 13.47% and 13.71%, respectively.
- Nearly three-fourth of the 8,000-odd firms surveyed, most of them micro, small, and medium enterprises (MSME), neither made any innovative product nor business process innovation during the survey period of financial years 2017-2020.
- However, nearly 80% of the firms that did reported significant gains such as expanding markets and reducing production costs.
- The most frequent “barriers to innovation” were the lack of internal funds, high innovation costs, and lack of financing from external sources.
- The NMIS 2021-22 study was conducted as a two-pronged survey that examined the innovation processes, outcomes, and barriers in manufacturing firms, and also studied the innovation ecosystem that affects innovation outcomes in these firms.
