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Karnataka ranks as the most ‘innovative’ State: NMIS

  • Published
    3rd May, 2023

A survey on the degree of innovation among manufacturing firms found that Karnataka, overall, is the most “innovative” State, followed by Dadra and Nagar Haveli, Daman and Diu (DNH&DD), Telangana, and Tamil Nadu.


  • Highest and lowest share: Telangana, Karnataka, and Tamil Nadu had the highest share of innovative firms at 46.18%, 39.10% and 31.90%, respectively, with Odisha, Bihar, and Jharkhand reporting the lowest share of such firms at 12.78%, 13.47% and 13.71%, respectively.
  • No innovation: Nearly three-fourths of the 8,000-odd firms surveyed, most of them micro, small, and medium enterprises (MSME), neither made any innovative product nor business process innovation during the survey period of financial years 2017-2020.

The findings are part of the National Manufacturing Innovation Survey (NMIS) 2021-22, a joint study by the Department of Science and Technology (DST) and the United Nations Industrial Development Organization (UNIDO), to evaluate the innovation performance of manufacturing firms in India.

What are the barriers to innovation?

  • lack of internal funds
  • high innovation costs
  • lack of financing from external sources
  • low demand for innovations in the market
  • organisational rigidities within the firms 
  • insufficient innovation potential and lack of qualified personnel 
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