Karnataka ranks as the most ‘innovative’ State: NMIS

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.

Key-highlights

• 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.

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