Telangana ranks second in Manufacturing Innovation Index Rankings 2022

Telangana is ranked after Karnataka, which is ahead with a marginal difference of less than one percent in the IMII score

Hyderabad: After leading the country with highest Per Capita Income, Forest cover increase and other parameters, Telangana is now ranked second in the Indian Manufacturing Innovation Index (IMII) Rankings 2022.

Telangana is ranked after Karnataka, which is ahead with a marginal difference of less than one percent in the IMII score in the major States category.

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The National Manufacturing Innovation Survey (NMIS) 2021-22 was conducted by the United Nations Industrial Development Organization (UNIDO) in collaboration with the Department of Science and Technology (DST) from February 2021 to May 2022.

Amidst the pandemic, the survey was conducted fully online with 8,087 firms responding out of 10,139 firms, covering 28 states and 6 UTs (excluding Lakshadweep). The survey had two specific components – the firm-level survey and the survey of Sectoral Systems of Innovation (SSI).

The firm-level component measured the innovation performance of manufacturing firms in India and assessed the enabling characteristics and barriers to such innovative firms.

The SSI component was aimed at measuring the innovation system available to specific industrial sectors to examine how manufacturing firms accessed information, knowledge, technologies, practices, and human and financial resources. It focused on five key manufacturing sectors, including food and beverages, textiles and apparel, automotive, pharmaceuticals and Information and Communication Technologies (ICT).

IMII 2022 was constructed from the results of the NMIS 2021-22 to compare the performance across three dimensions, nine pillars and 80 indicators.

Accordingly, Telangana was ranked second with 32.86 IMII score and Karnataka topped with 33.41 score, while the national average score stood at 28.17.

The IMII results suggest that while the presence of enablers such as an innovation ecosystem (linkages and knowledge flows) and internal firm capabilities and the absence of barriers are important for innovation, they alone do not guarantee high innovation output (performance) in manufacturing.

The study highlights the need for increased efforts in terms of innovation activities and investments to translate the presence of an enabling ecosystem and firm’s capabilities and absence of barriers into actual innovations.

It suggested that Karnataka and Telangana are doing better on three pillars of enablers, particularly on innovation activities and investment, resulting in better innovation performance and a higher share of innovators.