How can Indians move from "Jugaad" to large scale innovation to script a better future for India??

When i was a kid i was never allowed to use innovation and always kept focused on learning the things as they are, And when my organization demands innovation i have to work against my learning to be innovative. 

If my basic education had allowed me to express my mind; things surely would have been different.

Innovation is in attitude and attitude develops from our society, our surrounding, if we start promoting our kids innovation things would surely change, but seems it is too late for me to become more innovative over night.

In order to move 'to  large scale innovation..' the core culture of India and Indians should change. People should stop encouraging lazy and defeating attitudes (like religion, caste, language, color,social status,corruption,jealousy etc) and start encouraging positive attitudes like hard work, truthfulness,integrity,compassion towards others,determination,enthusiasm etc. These qualities are not going to be accepted by Indians in the near future. So, innovation on a large scale will be a part-time activity. 

Firms are the primary agents of industrial innovation. While the incentive for innovation by firms in India has increased after economic liberalisation, the inputs (funding, trained people and basic research and development) for innovation by firms have not kept pace with firms needs. Nor has the capacity of firms to innovate.

Also Government's efforts to enhance the availability of inputs to the innovation process have been ineffective because of the lack of a strategic and integrative vision, inadequate resources, and poor implementation.

Jugaad has nothing to do with culture,it is craving for change to move things at that point of time when it is needed most.When it is successful,it is adapted to suit the situation.These jugaads should be given wide publicity to bring  in the notice of R& D cell for effecting improvement.We should appreciate that people down the line has exposed inadequacy in the system.

Well, I do agree with what others have stated here. Some of you have referred to Innovation/cost effectiveness and government intervention.

I would like to go one step backwards. Primarily what is important is changing the mindset of the people. Change the mindset, (easier said than done though). Once the mindset of the people is changed and they look at themselves as ethical and sincere citizens of the country, they automatically become good human beings doing the right thing. Mindset change can only bring in the radical change we want to see. It is the only way India can be taken into the next level. And then all these innovations/cost effectiveness plans, more thought process from the government will come into picture and utilized to its fullest extent.

It will be killing if we are thinking for changing our mindsets and culture,,, Indians are very well known and admired across the countries due their one of best qualities and it is JUGAAD,,,

we just have to strategically craft / modify / motivate these Jugaad's into efficient and resource conservative Innovations...

I've previously also commented on Jugaad the following is the best example for that -

I was working with a heavy engineering company we were manufacturing very difficult parts for big MNC's across the world.. once 5 jobs were returned back to us from Germany as the OD was found 10micron oversize, as the OD was around 2500mm the job cannot be trued again on the machine and hence the jobs were rejected .... But WE Indian (Proud to be) me and my collegues and our senior we changed the whole scenario in a single night shift ..what we did was JUGAAD (cant tell here what we did) but seriously telling you all the jobs were again inspected and found OK... till now those german engineers are sending us mail and asking us what we did .... I'm really proud to be an Indian as we wake up where other's had left the game .. hats off to JUGAAD