India’s Deep Tech Ascent, From Patent Surge to Powerhouse Potential

India’s Deep Tech Ascent, From Patent Surge to Powerhouse Potential

India’s innovation landscape is witnessing a transformative surge, one underscored by a remarkable statistic: the granting of over 100,000 patents in a single year, a significant leap from pre-pandemic levels. This explosion is not in traditional sectors but in the high-stakes realm of frontier or “deep tech”—domains like Artificial Intelligence, quantum computing, robotics, renewable energy, space technology, semiconductors, and biotechnology. These fields, grounded in advanced scientific and engineering breakthroughs aimed at solving humanity’s most complex problems, are positioning India at a critical juncture. The nation now stands as the world’s sixth-largest in patent filings, a testament to its burgeoning scientific and entrepreneurial talent. However, this impressive quantitative leap belies a persistent qualitative challenge: translating these patents into commercial products and sustainable businesses. The journey from a patent certificate to a market-ready solution remains fraught with systemic hurdles, threatening to stifle India’s ambition to become a genuine deep-tech powerhouse.

The intrinsic value of a patent lies not in its parchment but in its commercial potential. It serves as a legally recognized exclusive right, a defensive shield against imitation, a catalyst for innovation-led growth, and a critical asset for securing funding. In 2025, Indian deep-tech companies raised over $1 billion in equity funding, with investors increasingly scrutinizing patent portfolios as a prerequisite for investment. This trend highlights the growing recognition of intellectual property (IP) as the bedrock of value in the knowledge economy. Patents empower startups to carve out market space, attract strategic partnerships, and build formidable businesses around novel solutions to global challenges—from climate crisis mitigation and healthcare breakthroughs to space exploration and industrial efficiency.

Despite this momentum, the ecosystem supporting deep-tech innovation in India remains fragmented and fraught with challenges. Startups grapple with a triad of critical constraints: inadequate incubation support, a severe funding shortage for long-gestation R&D, and a dysfunctional patent monetisation framework. The experiences of premier academic institutions like the IITs, IISc, and BITS Pilani reveal a recurring pattern. While these institutions are hotbeds of research, they often struggle with insufficient funding for applied research, a lack of structured mentoring for commercialisation, limited awareness of the patent system, and a fundamental inability to monetise the IP they generate. This failure to bridge the lab-to-market chasm has dire consequences. Many deep-tech startups, even those securing patents by meeting the criteria of “novelty” and “inventive step,” ultimately fail to satisfy the third, crucial requirement: “industrial applicability.”

The systemic nature of these problems is starkly evident in the Indian patent process itself. The average pendency period—from application to grant—stands at a debilitating 40-50 months, with the first examination report itself taking nearly a year. For a deep-tech startup operating in a fast-evolving technological field, such delays are catastrophic. A patent represents not just legal protection but a vital business asset essential for fundraising and market strategy. An idea risks obsolescence or being outpaced by global competitors long before it secures legal protection, leading to the premature collapse of promising ventures.

Furthermore, the structure of IP ownership often impedes progress. Universities and research institutions typically retain ownership of patents developed within their walls, creating bureaucratic hurdles for investors and entrepreneurs seeking to license and commercialise the technology independently. The patent licensing rate in India remains dismally low, pointing to a systemic failure in technology transfer. Compounding this is a critical gap in interdisciplinary awareness—a lack of synergy between the technical know-how of scientists and the legal-commercial acumen required for successful IP licensing and business building. This disconnect acts as a fatal barrier, causing many pioneering deep-tech ventures to gradually wither away.

Recognizing these impediments, the government has launched several laudable initiatives. Policies like reduced patent fees, expedited examination for startups, and international filing assistance under the SIP-EIT scheme provide foundational support. Broader frameworks like the Draft National Deep Tech Startup Policy (NDTSP), the R&D Incentive Scheme for the private sector, the Startup India Seed Fund Scheme, the SAMRIDH program for IT startups, and the iDEX scheme for defence innovation signal a strong policy intent. However, intent must now translate into impactful, ground-level execution. To truly harness the potential of its patent surge, India must implement a cohesive, multi-pronged strategy. Based on the critical needs of the ecosystem, six actionable recommendations emerge as vital for this transformation.

Strengthening Academic-Startup Linkages

Over half of all deep-tech startups originate within academia, making universities the fundamental wellspring of innovation. Yet, the pipeline from doctoral research to a functional company remains clogged. There is an urgent need to forge stronger, more formalized collaborations between academic institutions and the startup ecosystem. Such partnerships are vital for seamless knowledge transfer, co-creation of joint intellectual property, access to specialised talent, and shared use of expensive labs and R&D facilities. Crucially, doctoral (PhD) programmes require a fundamental reorientation. The sole metric of success cannot be academic publications. PhD outcomes must be expanded to explicitly promote entrepreneurship, considering company formation, prototype development, and filed patents as equally, if not more, valuable contributions. Incubators and accelerators embedded within universities must be empowered with industry veterans and venture capitalists to provide pragmatic, commercial mentorship from the ideation stage itself.

Expanding Access to Strategic, Patient Capital

Deep tech is inherently capital-intensive and characterized by long development cycles and high technical risk. Traditional venture capital, often seeking quicker returns, is ill-suited for these domains. Startups require patient, long-term “strategic capital” that can sustain them through years of R&D before reaching the market. The government must act as a catalyst and risk-taker. Leveraging instruments like the proposed Deep Tech Fund of Funds, which can invest in sector-specific VC funds, can mobilize domestic and foreign private investment into this high-risk, high-reward arena. Public-private partnership models, where government funding de-risks early-stage innovation for private co-investors, can create a sustainable financial ecosystem tailored for deep tech’s unique demands.

Fostering IP Literacy and Building Robust Patent Portfolios

For engineers and scientists, a patent is more than a legal document; it is a strategic business tool. There is a pressing need to ingrain IP literacy into the very fabric of the deep-tech ecosystem. Founders and researchers must proactively seek IP education, institutional support, and professional legal advisory to build not just patents, but defensible, high-value patent portfolios that can withstand global scrutiny. This education must begin early, integrated into accelerator and incubator curricula. Building a pervasive culture of IP respect and strategy, alongside fostering greater collaboration between technical teams and legal IP professionals, is non-negotiable for creating globally competitive enterprises.

Promoting Regulatory Ease and Fast-Track Approvals

Beyond funding and patents, deep-tech products often face a labyrinth of regulatory approvals, certifications, and validations—be it for a new medical device, a drone, or a fintech algorithm. Regulatory uncertainty can be a silent killer. Government agencies must work collaboratively to simplify procedures, introduce clear and predictable regulations (akin to the intent of a Digital Services Act for startups), and establish dedicated fast-track channels for deep-tech innovations. The focus for patent offices should also shift emphatically from chasing numerical targets to ensuring the grant of high-quality, commercially viable patents. A streamlined, transparent, and supportive regulatory environment will significantly reduce time-to-market for complex technologies.

Creating an Institutional Framework for Academia

The existing support structures within academia are insufficient for the commercialisation challenge. There is a dire need for new, India-centric institutional frameworks dedicated to assisting faculty and student founders. These entities could act as one-stop shops, providing access to skilled professionals for prototyping, certification, validation, clinical trials, reliability testing, regulatory navigation, patent filing/prosecution, and licensing negotiations. By offering this continuum of support, such frameworks can bridge the competency gap that currently exists between a brilliant academic proof-of-concept and a market-ready product.

Incentivising Commercialisation and International Collaboration

Finally, the ecosystem needs powerful incentives directed squarely at the “valley of death” between prototype and commercial success. Targeted measures such as grants specifically for advanced prototype development, revenue-linked tax benefits for patented products, and prioritised government procurement of indigenous deep-tech solutions can provide the crucial push startups need. Simultaneously, fostering thematic global partnerships—with other innovation hubs, multinational tech corporations, and research consortia—can open new markets, facilitate critical technology transfer, and accelerate the commercial scale-up of Indian startups on the world stage.

The phenomenal work of the 2023 Nobel laureates in economics, celebrated for their insights into innovation and growth, underscores a fundamental truth: patents beget innovation, and innovation catalyses economic growth. For India, this is not merely an academic principle but a strategic imperative. A thriving deep-tech ecosystem will empower startups to scale, enhance India’s economic resilience, reduce import dependencies, and ultimately pave the way for technological sovereignty. The foundation has been laid with a record number of patents and promising policy gestures. The path forward requires a concerted, unwavering commitment to implementing these actionable recommendations. If India can successfully bridge its formidable academic prowess with a robust, supportive, and commercially astute innovation ecosystem, its transition from a patent-filing leader to a deep-tech powerhouse will not just be possible—it will be inevitable.

V Ramgopal Rao & Bharadwaj
The views expressed are personal.

Q&A on India’s Deep-Tech Ecosystem

Q1: India granted over 100,000 patents last year. Why is this not enough to declare it a deep-tech powerhouse?
A1: The number of patents is a leading indicator of research activity, but not a direct measure of innovation’s economic impact. The critical gap lies in commercialisation. Many of these patents, while novel, fail to meet the requirement of “industrial applicability” or are not converted into market-ready products or scalable businesses. Challenges like long patent grant pendencies (40-50 months), inadequate funding for late-stage R&D, a lack of patent monetisation frameworks, and weak academia-industry linkages prevent patents from translating into commercial success. A true powerhouse is defined by globally competitive products and companies born from its IP, not just the volume of filings.

Q2: What is the “valley of death” for deep-tech startups, and how can it be crossed?
A2: The “valley of death” refers to the critical phase where a startup has a validated prototype (proven in a lab) but requires substantial further investment to develop a manufacturable, certified, and market-ready product. This phase is extremely capital-intensive and risky, deterring conventional investors. It can be crossed through targeted interventions: 1) Strategic Patient Capital: Government-backed funds (like a Deep Tech Fund of Funds) that provide long-term, high-risk funding. 2) Commercialisation Incentives: Grants for advanced prototyping, revenue-linked tax breaks, and guaranteed government procurement. 3) Institutional Support: Access to shared facilities for testing, certification, and regulatory navigation, reducing cost and time burdens.

Q3: How does the current academic system in India hinder deep-tech entrepreneurship, and what changes are needed?
A3: The system is primarily oriented toward academic publication as the pinnacle of PhD success, with limited focus on entrepreneurship or applied problem-solving. Faculty and students often lack mentorship, incentives, and structured pathways to commercialise research. IP ownership typically rests with the institution, creating licensing complexities. Changes needed include: 1) Reorienting PhD Outcomes: Recognizing startup formation and patents as key PhD deliverables. 2) Creating TTO-Like Frameworks: Establishing robust, professionally run Technology Transfer Offices (TTOs) or one-stop institutional frameworks to handle IP licensing, startup spin-offs, and provide commercialisation support. 3) Incentivising Faculty: Providing sabbaticals for entrepreneurship and recognizing patent/commercialisation success in promotions.

Q4: Why is “patient capital” specifically important for deep tech, and how can India attract it?
A4: Deep-tech innovations involve fundamental scientific or engineering challenges, leading to long R&D cycles (often 7-10 years), high upfront costs, and significant technical uncertainty. This contradicts the typical 5-7 year exit horizon sought by most VC funds. Patient capital is willing to wait longer for a potentially transformative payoff. India can attract it by: 1) Government Catalyst Role: Using public funds to create a Fund of Funds that invests in specialized deep-tech VC firms, de-risking the sector for private co-investors. 2) Building Track Records: Showcasing successful exits (even modest ones) to build investor confidence. 3) Involving Strategic Corporates: Encouraging domestic and global corporations with long-term R&D interests (e.g., in semiconductors, energy) to set up corporate venture capital arms focused on strategic, rather than purely financial, returns.

Q5: Beyond funding, what are the most critical regulatory and infrastructural supports needed for deep tech?
A5:

• Regulatory: Fast-Track, Clear Pathways: Streamlined, predictable, and time-bound regulatory approvals for certifications (e.g., for medical devices, drones, cleantech). A “single-window” or regulatory sandbox approach for testing innovations in controlled environments is crucial.

• Infrastructural: Shared High-Capex Facilities: Providing affordable access to state-of-the-art fab labs, testing centres, biotech labs, and high-performance computing clusters. The cost of setting up such facilities is prohibitive for individual startups.

• Legal & IP Infrastructure: Strengthened Patent Office: Reducing pendency drastically through digitization and increased manpower. Specialized IP Courts: Expediting resolution of patent disputes to ensure enforceability, which boosts investor confidence.

• Talent Infrastructure: Interdisciplinary Programs: Creating formal educational programs that blend science/engineering with business, law, and design thinking to produce founder-ready talent.