Top 500 global companies are likely to create 200,000 research and development (R&D) jobs in India by 2018, advisory and consulting firm Zinnov said in a report titled ‘Crossing the Value Chasm’ that was today.
“In keeping with the historic trend that companies with a higher R&D spend find India more attractive for investments, there is a clear opportunity to create additional 200,000 R&D jobs in India by top 500 companies in the next five years,” the report said.
“Today, close to 50% of the top 500 companies have over 10% of the global R&D head count in India.”
It added that the growth in headcount was calculated based on the assumption that best in class companies would grow at the existing rate of 20%, and other companies would grow at the existing rate of 14%.
According to the report, top 500 global companies spent $577 billion (around 35,92,976 crore rupees) on R&D during 2013, of which top 100 R&D spenders made for around 66%. Of the top 500 global companies, around 45% have investments in India, it said.
Geographically, companies headquartered in North America made for 40% of the overall R&D spend during 2013, followed by 34% from companies based out of Europe. Companies headquartered in Japan and Asia-Pacific contributed to 18% and 7% of the global R&D spend during this year, respectively.
“China today is the leading destination for R&D investments with a total of 385 of the top 500 companies having a presence there as compared to 220 of the top 500 companies in the Bay Area and 228 of the top 500 companies in India,” Zinnov said in the report.
The report also said that the Deccan Triangle (Bangalore, Hyderabad and Pune), has over 200 R&D centers established by the top 500 global firms, making the region “the innovation engine of India”. “Deccan triangle has as many R&D centers as Silicon Valley,” the report stated.
“Globally the automotive vertical has the highest R&D spend and India is one of the key destinations for these companies with cities such as Pune and Chennai fast emerging as auto hubs,” the report said.
Source: Business Standard