Why in News?
NITI Aayog along with the Institute for Competitiveness has released the second edition of the India Innovation Index-2020.
- India Innovation Index: The first edition of the index was launched in October 2019.
- The Index is aimed at providing an effective tool to track the state of innovation at both the national and the state level.
- Objectives: The index intends to accomplish the following three functions:
- Rank all States and Union Territories based on their index score.
- Identify innovation related opportunities and challenges for the states.
- Assist in modifying governmental policies to foster innovation.
- Parameters: The index measures innovation inputs through ‘Enablers’ and innovation output as ‘Performance.’
- Enablers: There are Five Enabler pillars that capture elements of the state economy. They act as inputs for the innovation environment. They are: Human Capital, Investment, Knowledge Workers, Business Environment, Safety and Legal Environment.
- Performance: The two Performance pillars that depict the performance are: Knowledge Output and Knowledge Diffusion.
- Ranking: The index has classified the States and Union Territories into three categories: Major States; NE and Hill States; and UT and City–States. These regions are categorized based on the area, as spatial homogeneity across states makes for a fair comparison for innovative capacity.
Key Findings of Innovation index:
- Level of Competitiveness: The index has found that the level of competitiveness among the States and Union Territories was high. This competitiveness is essential for improving on their enabling factors as well as innovation performance.
- Major States: Karnataka has continued to occupy the top position followed by Maharashtra, Tamil Nadu, Telangana, Kerala, Haryana, Andhra Pradesh, Gujarat, Uttar Pradesh and Punjab.
- UT and City–States: Delhi has retained its first rank in this category followed by Chandigarh.
- North-Eastern/Hill States category: Himachal Pradesh has topped the index in this category followed by Uttarakhand.
Significance of the index:
- The index is a major step towards measuring innovation outcomes of states. It will facilitate optimal utilization of national and state mechanisms to realize the goal of an ‘Atma Nirbhar Bharat’.
- The index can help Central and State governments to benchmark regional performance concerning innovation. It suggests policy decisions required to improve on the strengths and overcome the weak areas of the states.