National Manufacturing Innovation Survey: Karnataka ranked the most ‘innovative’ State

A survey on the degree of innovation among manufacturing firms found that Karnataka, overall, is the most “innovative” State, followed by Telangana, and Tamil Nadu. The National Manufacturing Innovation Survey (NMIS) 2021-22, released earlier this month, also found that innovation in manufacturing is the lowest in the Northeastern states (excluding Assam), followed by Bihar.

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According to the report, which has carried out its survey across over 8,000 firms in 28 states and 6 Union Territories (UTs), covering manufacturing and related service sector and MSMEs, found that there is a need to increase innovation in manufacturing. It stated that an increase in innovation carried out by firms has resulted in higher sales for them. A focus on innovation in manufacturing will also push India’s ranking up in the Global Innovation Index. India ranked 40 out of 132 countries on the Index last year.

According to the report:

• DST ranked Karnataka, followed by Telangana, Tamil Nadu, Maharashtra, and Haryana as high innovation states. Uttarakhand has the highest score among the hill states, while Dadra and Nagar Haveli and Daman and Diu has the highest score among the UTs.
• Apart from Northeastern states, low-performing states include Jharkhand, Odisha and Andhra Pradesh.
• Telangana, Karnataka, and Tamil Nadu had the highest share of innovative firms at 46.18 per cent, 39.10 per cent and 31.90 per cent, respectively, among the total manufacturing firms surveyed from the respective states, according to the report.
• Odisha, Bihar, and Jharkhand reported the least share of innovative firms at 12.78 per cent, 13.47 per cent and 13.71 per cent, respectively.

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About the Report:

In 2019, the Department of Science and Technology decided to follow up with a second nationwide innovation survey and assigned the innovation survey to the United Nations Industrial Development Organization (UNIDO), with a view to focus on manufacturing and associated services spread across large, medium, small, and micro-enterprises.

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