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Wednesday, Nov 13, 2019

Chandigarh ranked second among UTs in innovation by Niti Aayog

Scored a high of 76% in human resource, low of 2.4% on investments and 6.31% on business environment

chandigarh Updated: Oct 18, 2019 05:47 IST
Munieshwer A Sagar
Munieshwer A Sagar
Hindustan Times, Chandigarh
The index indicates how conducive are conditions for innovation in a UT or state
The index indicates how conducive are conditions for innovation in a UT or state(Getty Images/iStockphoto)

Chandigarh has been ranked second among the union territories in the India Innovation Index (III) 2019 rankings released by the Niti Aayog in Delhi on Thursday.

The index indicates how conducive are conditions for innovation in a UT or state. The III is calculated as the average of the scores obtained in two dimensions—enablers and performance (see box 1 for details). Two major categories are states and union territories.

Among the eight UTs, Delhi is on top in terms of overall III rankings, Chandigarh is second and Goa is on the third position. Chandigarh is also ranked second in the dimension of enablers. This implies that it has the second best enabling environment for innovation. It is also second in the performance dimension.

Overall, Chandigarh scores 27.97% on innovation index, Delhi scores 42.98% and Goa has a score of 22.49%.

On the two parameters, Chandigarh scores 32% on the enabler parameter and 23% on the performance parameter. Performance parameter measures how much innovation capacity is converted into results.


Among enabler components, city’s human resource capital has the highest score of 74.96% in the country. But, the city scores lowest on the investments front at 2.4%. Business environment in the city is also not conducive for innovation with a score of 6.31%. City scores 29.56% for knowledge workers. The safety and legal environment score is 50.74%.

In the two performance parameters, knowledge output score is 36.42%, while knowledge diffusion is at 9.87%.

Knowledge output parameter measures industrial designs by origin (4%), number of grass root innovations in state (0%), number of publications by state universities (7.31%), number of startups in the state (56.52%), patents filed from state (51.79%) and trademark application filed (57.07%).

Knowledge diffusion parameter includes high and medium-high-tech manufacturing entities (0), ICT exports (17.74%), number of citations (15.21%) and number of registered GI (0).


Karnataka is the most innovative state in India. Tamil Nadu, Maharashtra, Telangana, Haryana, Kerala, Uttar Pradesh, West Bengal, Gujarat, and Andhra Pradesh are among the remaining top ten major states. Punjab is on the 11 position in innovation index ranking.

Commenting on the poor performance in business environment and investments in the city, Pankaj Khanna, president Industries Association of Chandigarh, said, “The dismal score in these two parameters vindicates the consistent demand of the industry for policy initiative that rev up growth. Lack of policy timely support is turning out to be huge impediment in ease of doing business and nullifying the huge human resource capital available within the city. It is only the excellent human capital in the city that has kept its III ranking relative high.”


III for states/ UTs are measured on two parameters–enablers and performance. Enablers are the factors that underpin innovative capacities—human capital, investment, knowledge workers, business environment and safety and legal environment. Performance dimension captures benefits that a nation derives from knowledge output and knowledge diffusion.


While Chandigarh has one of the best human resources, it fares worst in terms of investment in innovation:

Human capital: Enrolments in PhD (99), higher education institutions with NAAC grade A and above (100%), students in engineering and technology (22.46%), colleges connected through NMEICT (100%), schools with ICT labs (47.86%) and pupil-teacher ratio in higher education (78%).

Investment parameter: Expenditure on science, technology and environment, and venture capital deals both score nil. There is almost negligible FDI inflow, at 0.06%. State government expenditure on higher and technical education scores only 9.97%.