Promoting Innovations in Indian Universities: A Theoretical Model of University-Industry Interface

Abstract: While India’s emergence as a rising economic power is an outcome of dynamic advantages based on technological learning and skills, innovation driven competitiveness has been much less prominent. It is expected that public funded institutions like universities and institutions should deliver on innovative research and ideas that can be commercialised. In this paper, we intend to understand university-industry interactions in India from a game theoretic perspective to capture issues of quality, objectives and incentives. Industry’s low appetite for university inventions in India needs careful assessment, even as industry is increasingly engaging with the academia for problem solving inputs. The probability of market success of a university technology is prima facie low because these technologies are allegedly short of significant technological value addition. Often such a deficit in novelty is linked to lesser degree of complexity of research undertaken at Indian universities in the first place. Our model has indicated how various parameters like royalty fees and scientist’s share of royalty and consultancy revenue could be used to promote cutting edge research at universities for technology commercialisation