2,000 Patent Filings A Year Signal Increased Innovation At Tata Sons: CTO Gopichand Katragadda

 2,000 Patent Filings A Year Signal Increased Innovation At Tata Sons: CTO Gopichand Katragadda
A luxury Jaguar F-Pace SUV automobile, produced by Jaguar Land Rover Plc, sits on display during previews to IAA Frankfurt Motor Show in Frankfurt, Germany. (Photographer: Krisztian Bocsi/Bloomberg)

Since 2015, Tata Group companies have showcased over 3,300 implemented innovations at its annual innovation program. The company says that's an over two-fold growth in two years. From drones to factory safety wearables to microbiome-based diagnostics to driver assist technologies, Tata companies have dabbled in practically each and every sector.

This digital push has been led by Gopichand Katragadda, group chief technology officer at Tata Sons. In a conversation with BloombergQuint, Katragadda spoke about the rate of innovation at the group, his outlook for the next few years and his views on immigration reform in the U.S.

Here are edited excerpts from that conversation.

Over the last couple of years, there has been a spike in thenumber of patents filed by Tata companies; there's been a large number ofdigital-led innovations. How have things changed at the group of late,especially with N Chandrasekaran at the helm?

The increase in patent filings and patent publicationsthat you see today are actually an outcome of work which has happened in thelast several years. The gradual increase in the intellectual property generationand protection is a reflection of the change in the understanding which thecompanies have, which has been driven, of course, by the programmes that havecome out of the group level to educate our teams on intellectual property; thefact that you don't have to invent a light bulb each time to protectintellectual property. Each improvement is well worth its protection and it canbe monetised. So the message is, it is a continuum, which has led us to thiscurrent state, where we are in a comfortable place of patenting about 2,000patents every year.

In terms of Mr Chandra (as Chandrasekaran is called) coming into the role, he brings with him deep knowledge of technology. Of course, everybody knows he comes from the IT world. He comes with a strong focus on data. But, what may be less known is that TCS is a company which works on a variety of technology areas, right from biology, the data aspects of biology, to the design aspects of aircraft engines and power turbines. So, really, his knowledge is much larger than you would expect.

When you talk about 2,000 patent filings every year, obviously,the number of patents actually granted is very different. Also, filing more patents isn't necessarilya sign of increased innovation. Could you give us the percentage of patents that are actually granted and how many of them are implemented?

I expect most of those filed will be granted, because weare doing the right “prior art” search and the right kind of background work inorder to identify the right areas to patent. We don't patent every idea thatcomes up. We know the areas that we should patent and proceed in generatingideas there. So we are very strategic about the intellectual property that weprotect. It is very expensive to protect intellectual property, so it is aconscious decision. The reason why we are talking about published patents isjust because, the number of published patents in the last three years hasincreased and there is a pendency of five years in India and at least fouryears in many of the other jurisdictions for the patents to be granted. So, thatis the only reason why we believe that the granted patent number today is apoor reflection of the innovation that we are seeing, and not that we expect that some or many of the patents we have filed will not be granted. I actuallyexpect those numbers will match up.

So, today I'm filing for 2,000 patents every year. Four years from today, we will be getting 2000 patents granted every year.

Talking about these innovations, what kind of revenue generation are we looking at?

You earlier asked a question about numbers versusquality. You have to bootstrap. So, you cannot wait for the perfect qualitypatent and only then patent. You have to get the numbers up, and then focuson quality and get the teams used to the idea of the intellectual property used to protecting what is new and difficult to copy. And, then you startlooking at how to monetise. So, that is the process we will follow here also.Now that we have the numbers up, we will start focusing and identifyingthose patents, which we know will create a market differentiation.

What has the revenue from these innovations been like over the pastcouple of years?

When I say market differentiation, I want revenue. I want more than revenue. When you're talking about IP, you want profit. For the same revenue, can I get more profits?...

... The ones (innovations) showcased here at Innovista are the tip of the iceberg. And those we track to $1 billion revenue. But, that is really the tip of the iceberg. What is below that tip in terms of revenues, it is very difficult to identify it to an innovation for any company. So, what you will see in terms of outcomes is that the quality of income generated will continue to improve. Where we are today, to where we need to be, both on the quality of income as well as on positioning ourselves for the future, we have a long way to go.

At the Tata Group, you have worked oninnovations that range from factory safety wearables to microbiometechnologies. What are the key focus areas when it comes to innovation?

Each company of course needs to look at their areas, their customers and identify what's important to them. At the group level, we picked four areas, one being energy. Part of the reason is that energy is important to many of the areas that we work in. It is also important to India. We are looking at more than doubling the generation capacity in India.

We have about 300 gigawatts (GW) installed today. We need to get to 700 GW. That's 400 GW of energy that needs to be added. That's $400 billion of revenue. Somebody is going to get that $400 billion of revenue. I would like to have a significant part of that. 

But that is not all. You have to add transmission and distribution, which is another $400 billion of revenue. That's $800 billion of revenue and I would like companies in this region to be hungry, eager and innovative to take this. And in doing this, they will prepare themselves for being global first...

Food is another area. Again, it's an important area for the Tatas and India. We have some of the lowest productivity in terms of agricultural productivity. So, we would like to use less water, pesticide and fertiliser. By the way, these are all of our businesses, but we would like to use less of that. And increase the yield by using multiple approaches- from using better seeds to better delivery of pesticides and fertilisers.

Third area is factories and fleets. We know our factories and fleets, be it passenger vehicles or consumer vehicles. We know our truck drivers and factory floor workers. We are using that knowledge to look at industrial IoT (Internet of Things), and various other aspects of making them more productive. Digital consumers, you cannot be in business and not pay attention to that. So, we are starting with wearable for the digital factory floor worker, because that's our strength. But, the longer-term goal is to be present in the digital consumer markets in a big way.

When you look at what's happening in theU.S. with immigration reform considering how Indian tech companies are beingimpacted, what do you make of all of this from a tech standpoint?

I think it's a wonderful opportunity. 1) We can do much more in the country itself. 2) We need to focus more on products and drive the top end of the value chain from India. We have learned a lot over the past years. It is our time, so let's have the whole world want to come and work in India.

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