Study Finds Limited Support for Deep Tech Startups in India’s Public-Funded Research Labs

A recent study commissioned by the Office of the Principal Scientific Adviser and conducted by the Confederation of Indian Industry (CII) and the Centre for Technology, Innovation, and Economic Research has highlighted significant gaps in India’s public-funded research and development (R&D) organizations. Released on April 29, 2025, the study found that only about one in four of these organizations provides incubation support to startups, and just one in six supports deep tech startups, which focus on advanced technologies like artificial intelligence, biotechnology, and quantum computing. The findings point to limited collaboration with industry, restricted access to facilities, and inadequate R&D spending, raising concerns about India’s innovation ecosystem.

The study surveyed labs affiliated with bodies like the Council of Scientific and Industrial Research (CSIR), the Department of Science and Technology (DST), and the Ministry of Electronics and Information Technology, excluding strategic sectors like defense, space, and atomic energy due to their sensitive nature. Using a detailed questionnaire, it evaluated 244 labs across 21 ministries on 62 parameters, including R&D spending, patents filed, young scientists employed, women’s participation, and contributions to national missions like the Deep Ocean Mission and National Quantum Mission. Only 25% of the labs reported spending 75% to 100% of their budget on R&D, with lower spending noted in organizations under the Indian Council of Agricultural Research (ICAR), CSIR, Indian Council of Medical Research (ICMR), Ministry of AYUSH, and DST.

Collaboration and access also emerged as weak points. Just 15% of the labs worked with international industry partners, and only half allowed outside researchers and students to use their facilities. This lack of openness hinders innovation, especially for deep tech startups that rely on advanced infrastructure and expertise. The study also noted a decline in permanent staff in 2022-23, with labs increasingly hiring contractual workers. However, the share of young researchers rose to 58% from 54% the previous year, a positive trend for fresh talent in R&D.

Dr. Ajay Sood, Principal Scientific Adviser, emphasized the need for labs to analyze the data to identify improvement areas. “Several research institutes have shifted from pure scientific inquiry to innovation hubs, which is encouraging. Academia and product innovation must work together,” he said. The study recommends that labs review their mandates to focus on critical technologies and align with the government’s Viksit Bharat goals. It also calls for stronger industry partnerships and increased openness to external researchers to foster a vibrant innovation ecosystem.

The study cites Union government R&D expenditure at ₹55,685 crore in 2020-21, with ₹24,587 crore spent by non-strategic scientific agencies and departments, the latest available figure. This spending is modest compared to global leaders like China, which invested $845 billion in tech from 2014-2024, while India’s total tech investment was $160 billion.

The report’s release comes amid growing calls for policy reforms, such as the National Deep Tech Startup Policy (NDTSP) 2023, to address funding, intellectual property protection, and talent shortages. With India hosting over 4,000 deep tech startups in 2024, up from 3,600 in 2023, the sector is critical for economic growth and global competitiveness. The study urges public-funded labs to step up support to help India become a deep tech powerhouse.