USA is a knowledge based economy which is growing at a sustained rate. This type of economy adds more value to its available resources and hence ensure better growth.
The major concern with India in realising the potential of knowledge base economy are:
- Lack of adequate funds for investing in R&D sector. Our gross expenditure on R& D has remain stagnated over the period of time.
- University spending on R&D as compare to its peer countries is very less. There should be more focus on practical aspect in universities.
- Majority of the funding comes from Central government. Time has come for state government to take responsibility.
- Our education system at primary and secondary level is not inclined towards practical and experiments learning rather than it is on rote learning which impedes the growth of innovative skills.
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