Also on the topic of technology, it was noted that while India is moving towards increased focus on research and development, there were still substantial barriers to fomenting and disseminating innovation. The recent passage of a legislation protecting intellectual property rights was a step in a positive direction, but remains to be fully tested. In the medium term, however, protection of both technology transferred as well as the domestic companies’ advances will contribute to innovation that is inspired by, and uniquely suited to, advancing India’s economic growth. The framework for financial sector reform to encourage financing of such innovation was a more complicated question. Here, the expertise of some of Silicon Valley’s venture capital community was brought to bear. The primary focus should be on improving the legal basis to support the often complex contracts between investors and start-up companies.

Another interesting issue was the model and simulations in a paper titled ‘China, The US and Sustainability: Perspectives Based on Comprehensive Wealth’, by Nobel Laureate Kenneth Arrow, Partha Dasgupta, Lawrence Goulder, Kevin Mumford, and Kirsten Oleson. Its analysis was designed to consider well-being and sustainability through a comprehensive wealth accounting. This included valuing natural resources such as clean air and water as well as measuring human well-being.

Sustainability was being considered in a broader sense: in terms of the capacity to provide for the well-being of future generations. The principle indicator of a comprehensive measure of health was one that included both marketed and non-marketed assets. In the initial conclusions, and contrary to popular perception, in China, investments in reproducible capital (manufactured capital goods) contributed the most to increase in general wealth. Technology also played a significant role. China’s depletion of natural resources has not yet had as big an impact on wealth as do the contributions from investment in reproducible and human capital. The same is true of the US, where increases in human capital significantly outweigh the adverse wealth effects from resource depletion and higher oil prices.

... contd.