The high levels of R&D spending in Kerala do not translate into increased patent output and a new report details nanotechnology prospects and advocates policy changes.

Research and development spending at 0.30% of GSDP in Kerala does not translate into high levels of patent productivity since the state obtains just 0.14 patent applications for every ₹1 crore of R&D expenditure. According to a research published in Kerala Economy by Gulati Institute of Finance and Taxation Kerala stands as #13 among 14 Indian states regarding patent outputs.

The paper written by Rajesh Many from Mahatma Gandhi University demonstrates that investments do not align with innovation outcomes. Education-related institutions allocated 44.81% of the total R&D budget yet this amount accounted for 7.29% of all patents in Kerala. Industrial research received only 9.16% of the budget while producing 24% of registered patents.

Therefore the study finds positive signs regarding Kerala's development in medical technologies together with digital innovations as well as nano technology capabilities. Nanotechnology shows strong potential to develop into a strategic basis for Kerala’s knowledge economy when resources are properly targeted. The paper advises increasing funding for industrial and environmental research as it will help reveal this potential.

Government entities controlled patent applications outnumber those filed by state universities which demonstrate a lower participation rate. The percentage of patents created by individual inventors reaches 36% indicating that such researchers should be included into established innovation networks.

The report advocates policy transformation to introduce targeted incentives together with enhanced collaboration between industry and research which would specifically promote output improvement specifically within fast-changing fields of nano technology. Failure to take immediate action will result in Kerala being left behind in the innovation progress.