India’s R&D Challenge: How Philanthropy Can Drive Healthcare Innovation

India’s R&D Challenge: How Philanthropy Can Drive Healthcare Innovation

SUMMARY

India's investment in R&D has been at 0.64% of its GDP as compared to China’s 2.41%, US’ 3.47%, and Israel’s 5.71%

Low R&D funding has a direct bearing on the Indian healthcare ecosystem, which hampers the development of new drugs, medical devices, or treatments

Philanthropic organisations are particularly well positioned to help advance advocacy efforts on how research is essential to health progress.

Biomedical research has led to many medical breakthroughs and developments providing the scientific basis for new treatments, medical technologies, and public health guidelines. The country at present is experiencing triple burden of disease — infectious diseases; the challenge of non- communicable diseases (NCDs), linked with lifestyle changes; and emergence of new pathogens causing epidemics and pandemics. India’s biomedical research landscape stands at a critical juncture to meet the needs of its population.

Existing R&D Investment Ecosystem In India

India’s investment in R&D has been at 0.64% of its GDP as compared to China’s 2.41%, US’ 3.47%, and Israel’s 5.71%. In the interim budget presented on 1 February , the government had announced a corpus of INR 1 Lakh Cr for research and innovation in the country.

India’s R&D is witnessing significant growth, with a notable increase in Gross Expenditure on Research and Development (GERD) from INR 6,01,968 Mn in 2010-11 to INR 12,73,810 Mn in 2020-21. The private sector’s contribution to R&D in India is just 36.4% of its GERD when compared to China’s 77% and the US’ 75%. However, there is still a long way to go. The healthcare sector requires substantial investment in research to develop innovative and cost effective solutions.

The Impact Of Low R&D Investment On India’s Healthcare delivery

Low R&D funding has a direct bearing on the Indian healthcare ecosystem, which hampers the development of new drugs, medical devices, or treatments that would otherwise rely on foreign innovation; which may not be suitable for specific requirements in India.

Without investment in clinical research, the country will be unable to build up a stable network of well-trained scientists and medical professionals who could drive biomedical innovation, leading to delayed access to life saving advancements. Investment in R&D for drug development, healthcare and biomedical devices can potentially reduce dependency on imports rather than exports.

By fostering domestic innovation and manufacturing capabilities, countries can enhance their self-sufficiency in healthcare devices and drugs, thereby reducing reliance on imports. This approach also supports economic growth by promoting local industries and creating high-value jobs in the biomedical sector.

How Philanthropy Can Accelerate Innovation

It takes a significant amount of seed funding to develop a new drug from scratch and demands multiple scientists working on it at different stages. Philanthropy can bridge this gap to complement the efforts by government bodies and the private sector. Private donors and philanthropic organisations have the resources, patience and the intent, to fund early-stage research, to further augment the government initiatives and bridge the existing gaps.

With philanthropic investments in India, research on locally prevalent diseases and conditions can be supported, thereby providing a tailored and focussed approach to public health. Moreover, large philanthropic donations, particularly from renowned High Net-worth Individuals (HNIs), can increase public awareness thereby attracting overall funding for these research endeavours.

They in turn also become role models thus enabling and educating other philanthropists, guiding them on how to invest in science and research. 

Multi-Sectoral Collaboration In Biomedical Innovation

There is a great need for a multi-sectoral approach to address the healthcare challenges of India, including partnerships between the government, private sectors, academia, and philanthropists. Thus, creating an ecosystem that brings institutes, incubators, and industries under one umbrella can foster collaboration in the biomedical sector to expedite translational research leading to development of therapies, diagnostics, medical devices and other healthcare products.

It is in this context that philanthropic organisations can be quite effective as a part of connecting multiple sectors to maximise their collaborative impact.

For example, philanthropic organisations must partner with academic institutions to create research centres of excellence. Such centres can focus on urgent healthcare issues identified in India, like tuberculosis, cardiovascular diseases, or maternal health.

Beyond this, interdisciplinary collaboration helps ensure that scientific breakthroughs result in practical application in the health system. For example, India has been pivotal in vaccine development and played a crucial role with its quick turn-around time against diseases like COVID-19, impacting global health outcomes. 

India also developed vaccines that played a major role in global immunisation efforts against hepatitis B. The funding power and convening capacity of philanthropy can solve issues related to accessibility, affordability and inclusivity of healthcare services and innovation.

Bringing Awareness To Funding For Biomedical Innovation

Another barrier to increase R&D investment is low public and institutional awareness about the importance of biomedical research. Philanthropic organisations are particularly well positioned to help advance advocacy efforts on how research is essential to health progress.

By raising the awareness amongst policymakers, industry leaders, and the public through philanthropy, the interest in biomedical innovation will accelerate.

Philanthropists would also help to align funding with the national priorities so that research projects address the health issues that India faces most urgently. Media and public campaigns must also be used by philanthropists to highlight success stories of biomedical innovation.

Innovative fundraising models like crowdfunding have worked well so far allowing people to contribute, regardless of geographical boundaries or socio-economic backgrounds. This model can be further extended to democratise funding for biomedical research in India.

Additionally, ensuring capacity building of scientists to communicate their research, promoting entrepreneurship in this sector, solving lab to market issues, engaging with state governments to solve local issues can encourage a culture that values the scientific temperament in the country.

A key area to address for philanthropic funding should also involve empowering and encouraging young Indian minds at school and graduate levels to take up science and research as a career and pursue entrepreneurship to deliver on India’s self-reliance and Viksit Bharat agenda. 

Philanthropy can accelerate innovation by funding research, connecting the right sectors, and bringing greater awareness among the right stakeholders on biomedical research. 

Note: The views and opinions expressed are solely those of the author and does not necessarily reflect the views held by Inc42, its creators or employees. Inc42 is not responsible for the accuracy of any of the information supplied by guest bloggers.

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