Inaugurating the School of Commerce and Economics building at Loyola College here, Mukherjee said: "We must improve our systems to encourage innovation and put in place a system to attract Indian researchers working abroad to return and work on short term projects in our country."
Stressing on the importance of innovation, he said it is the key to future economic progress.
Mukherjee said China and the US are at the forefront in the world with five lakh patent applications being filed by each in 2011.
According to him, India lags far behind as it filed only 42,000 patent applications.
He expressed his happiness at Loyola College turning out 131 doctorates over the past five years.
Mukherjee also expressed happiness at the college faculty and students having to their credit articles in 439 international and 433 national research publications during the same period.
It is also commendable that Loyola College has made a mark in industrial research through eight patents and eight more pending patents, the President said.