The Indian government has declared 2010-2020 as the �€œDecade of Innovation�€. Although the gamut of innovation is vast and government efforts will be directed towards stimulating reforms in various sectors including education, environment, healthcare, and legal, there is an underlying emphasis to boost advances in science and technology.  The stress on providing an impetus to science and technology is important, keeping in mind the crucial role it plays in the progress of a nation. 

India�€™s announcement follows growing recognition of the power of innovation to create socio - economic transformation, and is a critical step towards developing India as a knowledge economy. 

The concept of Innovation Economics is certainly not new, although its popularity has decidedly increased over the years. It was introduced by Joseph Schumpeter in his 1942 book Capitalism, Socialism and Democracy. For a country aspiring to be taken more seriously on the global stage, it makes sense to invest in technology, amongst other fields, in order to be a knowledge power house. We are in a technology driven era and countries with superior scientific know - how will have an advantage similar to the benefits enjoyed by industrialized economies in the past century. India is a country with a history of promoting indigenous technology, although this may have been predominantly due to a lack of choice in the past. Pride and self esteem along with its admirable intellectual capital have seen India accomplish significant scientific achievements, particularly in the field of space, defense and atomic energy. 

The difference lies in the fact that it was earlier playing �€œcatch up�€ to innovation already demonstrated by advancing economies, while in the coming decades it could look towards setting new paths. 

The official announcement may have come in 2010, but India had started laying the groundwork over the past several years. The National Innovation Fund was set up in 2000, to promote innovation at the grassroots level. The Plan Allocation to scientific departments tripled from the 10th Plan to the 11th Plan in 2007 and we can expect the momentum to be sustained in the 12th Plan in 2012.  The National Innovation Act 2008, presently in draft stage, is a critical step in building a national mechanism to facilitate innovation at the macro and micro levels. It includes presentation of an integrated Science and Technology Plan in February of every year. It also includes measures to aid public �€“ private partnerships, promote innovation financing and set up special innovation zones. Enactment of the Act will provide the necessary framework and impetus to boost new ideas and initiatives in various fields. 

Furthermore, India has been focusing on developing new capabilities in emerging areas such as genomics and biotechnology. The sequencing of first human genome in India by Institute of Genomics and Integrative Biology (IGIB), Delhi, a constituent laboratory of Council of Scientific and Industrial Research (CSIR) has helped India join the league of select countries undertaking advanced research in the area of genomics. 

The efforts towards laying the foundation for the �€œDecade of Innovation�€ have started bearing fruit. According to a 2009 research report by Thomson Reuters, India�€™s ranking in annual output of scientific publications improved from 15th position in 2002 to 10th position in 2008, although the report also stated that India is yet under performing if judged by its enormous potential.

However innovation cannot be confined only to scientific research funded by governments and industry. The Global Innovation Index and Report (2009-2010) issued by INSEAD, one of the leading graduate business schools in the world, in partnership with India�€™s Confederation of Indian Industry (CII) which ranks countries on basis of multiple parameters including innovation inputs and outputs, ranked India a low 56 out of 132 countries. This corresponds with India�€™s dismal performance on the Global Innovation Index (2009) brought out by Boston Consulting Group in collaboration with NAM (USA) which ranked India 15th out of 20 large countries (as defined by GDP). 

The challenge for India in the coming decade will be to look beyond development occurring solely in scientific R & D laboratories to building a holistic environment encompassing industry, education and the legal sectors to drive growth. Advances in science and technology cannot be viewed as functioning in a silo, and require imagination and transformation in other key areas such as patent laws, investor management, and academia �€“ industry partnerships. 

India may also wish to consider the fact that it is but one of the several countries to have joined the innovation bandwagon. Similar initiatives are being undertaken by USA, Europe, China, and Russia, amongst others to boost their economies through focus on harnessing creativity and novelty. In the coming decade, countries that succeed in introducing breakthroughs in new global challenges such as climate change, energy security, and sustainable agriculture will have more muscle in the changing global dynamics. Hence it will be imperative for India to successfully translate ideas into action and effectively implement and execute new policies.  

Will India be able to capitalize on 2010:2020 - �€œDecade of Innovation�€ as a catalyst for change and emerge as a global knowledge economy? It remains to be seen.