National Manufacturing Innovation Survey (NMIS) [UPSC Notes]

Karnataka has topped the recently (May 2023) released National Manufacturing Innovation Survey and is the most innovative state. In this article, you can read more about the National Manufacturing Innovation Survey 2020-21 and analyse the results of it from the IAS exam perspective.

National Manufacturing Innovation Survey (NMIS)

The National Manufacturing Innovation Survey (NMIS) 2021-22 was conducted to measure the innovation performance of manufacturing firms in India and it is a joint study by the Department of Science and Technology (DST) and the United Nations Industrial Development Organization (UNIDO). 

• The National Manufacturing Innovation Survey (NMIS) 2021-22 analyzed the innovation processes, outcomes, and barriers in manufacturing firms and was conducted as a two-pronged survey. The NMIS survey 2021-22 also studied the innovation ecosystem that affects innovation outcomes in these firms. 
• DST’s first National Innovation Survey was held in 2011 and the NMIS Survey 2021-22 is a follow-up of it.

National Manufacturing Innovation Survey (NMIS) 2020-21 Findings

• The survey was topped by Karnataka overall followed by Dadra and Nagar Haveli, Daman and Diu (DNH&DD), Telangana, and Tamil Nadu.
• States with the highest share of innovative firms are:
  • Telangana – 46.18%
  • Karnataka – 39.10%
  • Tamil Nadu – 31.90%     
• States with the lowest share of innovative firms are:
  • Odisha – 12.78%
  • Bihar – 13.47%
  • Jharkhand – 13.71%     
• Most of the surveyed industries belong to the micro, small, and medium enterprises (MSME) category and almost three-fourths of the 8,000 firms surveyed for the period of financial year 2017-20, neither made any innovative product nor business process innovation.
• However, nearly 80% of the firms reported significant gains such as expanding markets and reducing production costs.
• The causes for barriers to innovation were lack of internal funds, lack of financing from external sources and high innovation costs.
• Despite being among India’s most industrialized States, Gujarat and Dadra and Nagar Haveli, Daman and Diu (DNH&DD) reported the highest frequencies of barriers to innovation.
• UNIDO representatives opined that findings of the survey show that innovation is yet to become common but is helping firms to turn profitable and there is a need to focus on manufacturing innovation along with capacity expansion.
• An official from DST also said that findings of the survey such as evidence of barriers and challenges to innovation and upgradation of industries will be used to devise policies, programs, and partnerships to strengthen innovation outcomes and benefits.

National Manufacturing Innovation Survey (NMIS):- Download PDF Here