India has one of the most hostile environments in the world for driving innovation according to a recent report by the Information Technology and Innovation Foundation (ITIF), a technology policy think tank.

Ranked 54th out of 56 countries based on domestic policies in support of global innovation, makes the most extensive use of trade barriers and other distortions while providing weaker environments for intellectual property protection.

The report considers 27 indicators grouped under three categories: taxes, human capital and R&D and technology.

India is top when it comes to generous R&D related tax incentives.

It however lags in other areas such as collaborative R&D tax credits (offered on expenditure made to support research at universities, national labs, and research consortia) and encouragement to commercialise innovation, rather than just research.