India, July 8 -- From Moon landings to mRNA vaccines, many breakthroughs were seeded by governments willing to do what markets could not. Yet today, the State is often told to step aside and let the private sector lead. This creates a paradox. Governments are blamed for not innovating, yet also told not to try. At the same time, many private firms have shifted from building to optimising. Instead of investing in research or transformational ideas, they focus on quarterly targets and stock buybacks. Innovation has become a buzzword rather than a behaviour. True innovation ecosystems need both sides. They emerge when governments stop acting like cautious regulators and become mission-driven investors. They grow when businesses take risks and focus on long-term value. The world's most iconic innovations are rarely the work of lone entrepreneurs. They are the outcome of public ambition meeting private execution. Apple's success owes much to State-led innovation. Technologies like GPS, touchscreens, and the internet began with Darpa funding when private investors stayed away. Finland followed a similar approach. SITRA, its public funding agency, retained equity in early investments in Nokia. In the 1960s, South Korea picked automobiles, where it had no advantage, and used State support and learning-by-doing to turn Hyundai into a global brand. China, seeing it could not win with combustion engines, bet early on EVs. It backed firms, secured minerals, and shaped demand through procurement. Today, it makes 60% of the world's EVs. India must remember these lessons as it builds its own innovation engine. The government has made moves through Production Linked Incentives (PLI) schemes, digital public infrastructure, and missions in quantum and semiconductors. But many efforts stop at subsidies or tax breaks. What is missing is the confidence to lead. Mission-driven innovation needs the State to go beyond funding and shape markets with clear goals, coordinated capital, and long-term commitment. This means supporting grand challenges with patient capital and strong institutions. It also means reforming procurement to reward risk, building public R&D that works with industry, and turning innovation into a national drive. The real risk is doing too little. India has the talent and ambition. But without a State that acts like a venture capitalist with a public purpose, we will keep mistaking jugaad for innovation and miss the chance for global leadership. For this engine to truly fire, the private sector cannot be a passenger. It must become a co-pilot. The private sector's role in scaling and commercialising innovation is essential. Amazon reshaped logistics. Moderna turned public mRNA research into a vaccine within months. In South Korea, State support helped Samsung and LG shift from copying to creating. India's private sector is still catching up. Some firms are global leaders in services and frugal engineering, but the overall picture is sobering. Private R&D spending is just 0.3% of GDP. China spends 5X more, and countries like South Korea and Germany invest even more. Outside a few examples like Tata Motors with the Nano, Serum Institute's vaccines, or Biocon's biosimilars, innovation is still treated as a cost, not a strategy. This gap is not about lack of talent. It is about incentives, time horizons, and mindset. Many Indian firms chase quick returns, rely on imported technology, and underinvest in research. But innovation needs patience, close ties with universities, and the courage to accept failure. What can change this? First, shift from imitation to invention. Being cost-effective is not enough without unique intellectual property. Second, focus on India-specific problems like rural fintech, climate-resilient crops, and energy-efficient manufacturing. Third, build strong partnerships with public institutions to shape future markets, not just for CSR. Innovation is a business model. The sooner we realise that, the faster we can move up the value chain. If we want innovation-led growth that is smart and inclusive, we must stop treating the State as a passive regulator and the private sector as the only entrepreneur. The real economy is not a casino where public institutions absorb losses and private actors pocket gains. A truly entrepreneurial State does not just fund risk, it demands a fair share of reward. A responsible private sector does not just seek tax breaks and regulatory holidays, it invests in long-term capacity that creates public value. What we need is a new risk-reward compact, as Mariana Mazzucato puts it. One that acknowledges the collective effort behind innovation and ensures benefits are more broadly shared. This is not about capping profits. It is about recognising that innovation is a team sport and designing systems that reward the team, not just the star striker. Breakthroughs co-created, not the unicorn count, will define India as an innovation power house....