13/10/2016

TheGovernmentofIndia'sRoleinPromotingInnovationthroughPolicyInitiativesforEntrepreneurshipDevelopment|TIMReview
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TheGovernmentofIndia'sRoleinPromoting
InnovationthroughPolicyInitiativesfor
EntrepreneurshipDevelopment
RavindraAbhyankar

August2014

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Inthisissue
Editorial:InnovationandEntrepreneurshipinIndia
(August2014)
EntrepreneurshipEducationinIndia:ACritical
AssessmentandaProposedFramework
TheGovernmentofIndia'sRoleinPromoting
InnovationthroughPolicyInitiativesfor
EntrepreneurshipDevelopment
TheRoleofManagersasAgentsinSuccessful
ServiceInnovations:EvidencefromIndia

Innovationisthespecificinstrumentofentrepreneurship.Theactthatendows
resourceswithanewcapacitytocreatewealth.
PeterF.Drucker(19092005)
Authorandmanagementconsultant

Abstract
Inspiteofhavingalargepubliclyfundedscienceandtechnologyinfrastructureandasizeable
educationbase,Indiahasnotbeenabletorealizeitsinnovativepotentialduetoafragmented

PerceivedEnvironmentalUncertaintyforStartups:
ANoteonEntrepreneurshipResearchfroman
IndianPerspective
ReviewingtheKnowledgeSystemsofInnovation
andtheAssociatedRolesofMajorStakeholdersin
theIndianContext
Q&A.WhatistheFutureofEntrepreneurshipin
India?

Aboutthisarticle

innovationecosystem.ThegovernmentofIndiahastakenmanyinitiativestowardsstrengthening

Citation:

theinnovationecosystem,themostimportantofwhichare:i)theestablishmentoftheNational

initiative,thisarticledescribesthecurrentinnovationecosystemandthechallengesitfaces,andit

Abhyankar,R.2014.The Government of India's Role in

Promoting Innovation through Policy Initiatives for
Entrepreneurship Development.Technology
InnovationManagementReview,4(8):1117.
http://timreview.ca/article/818
Citethisarticle:

discussestheeffortsmadebythegovernmenttowardsthepromotionofinnovationfor

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InnovationCouncil,whosemandateistocoordinatevariousinnovationrelatedactivities,andii)the
newScience,TechnologyandInnovationPolicy2013,whichisintendedtopromoteentrepreneurship
andscienceledsolutionsforsustainableandinclusivegrowth.Withafocusonthisnewpolicy

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entrepreneurshipdevelopmentandsustainablegrowth.Withtheimplementationofthisnewpolicy
theearlyindicationsarethatIndiaispoisedtotakeabigleaptowardsinnovationledgrowth.
Introduction
Indiaisacountrywithover1.2billionpeople,379million(31%)ofwhicharebetweentheagesof18
and35(CensusofIndia,2011).And,manyoftheseyoungpeopleareinsearchofjobs,despitebeing
educated.Forexample,onlyoneineveryfoururbanmalesunder29yearsisemployedeventhough
theyholdatleastacertificateordiploma(NationalSampleSurveyOffice,2013).Theaimofthe
governmenthasbeentocreateemploymentopportunitiesforyouthwhilefocusingonrapideconomic
growth.EntrepreneurshipdevelopmentisoneofthemechanismsadoptedbytheGovernmentof
Indiatowardsthecreationofjobopportunities.Thegovernment'sassumptionisthatsupportfor
innovationwillenhanceentrepreneurshipdevelopment,whichwillinturnaccelerateeconomic
growth.
InMarch2010,Mrs.PratibhaPatil,12thPresidentofIndia,announcedthegovernment'svisionby
declaringthecurrentdecadeasthe"DecadeofInnovation"(NationInnovationCouncil,2010).
Severalchallengestothedesiredcreationofanecosystemforinnovationandentrepreneurship
developmentareacauseforconcern.However,therehavebeennotableeffortstakenbythe
governmentbyannouncingconducivepoliciesandalsoeffortsbyvariousgovernmentdepartments
towardsfulfillingtheabovevision.

Authorinformation

RavindraAbhyankar
RavindraAbhyankarisanElectricalEngineerwhohas
workedintheGovernmentofIndiainvariouscapacities.
Afterworkingfor17yearsintheMinistryofDefense
(19741990)inthefieldofqualityassurance,technical
development,andindigenizationofvariousfighteraircraft
andotheraeronauticalsystems,hejoinedtheMinistryof
ScienceandTechnologyintheDepartmentofScientific
andIndustrialresearch(DSIR).Inthisministry,he
handledvariousresponsibilitiessuchasadministering
fiscalincentivesforR&Dandsupportinginnovationatthe
individualandindustriallevelsforover20years(1990
2011).HewasthenodalofficerintheGovernmentof
IndiafortheAsianandPacificCenterforTransferof
Technology(APCTT),whichisaUnitedNationsinitiative
dedicatedtocapacitybuildingofAsiaPacificcountriesto
nurtureandpromotenationalinnovationsystemsandalso
tocreateenablingenvironmentsforthedevelopmentand
transferoftechnologyandR&Dmanagement.Hehas
alsofunctionedasanAdvisertotheScienceand
TechnologyMinisterofMozambique(20122014)inthe
creationofapubliclyfundedR&Dsystemforthebenefit
ofMozambicanindustry.

Morebythisauthor

Thisarticleprovidesthenecessarybackgroundtoplacethecurrentinnovationecosystemwithinthe
Indiancontext,highlightssomeoftherelatedchallengesfacingIndiatoday,anddescribesefforts
madebythegovernmenttowardsthepromotionofinnovationforentrepreneurshipdevelopment.

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TheIndianContext
TherootsofIndia'scurrenteconomicsystemsextendbacktothetimeofcolonialruleandits

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autocraticandfragmentedstructure.Thecountrywasmadetoforcefullyserveasamarkettoits
colonialbossesandtheirindustrialproducts.Independencein1947broughtmanychanges,butthe

Createnewaccount

countrydidnothavetostart"fromscratch".Thefoundationsofthetoday'slegal,financial,

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educational,bureaucraticgovernancesystemswereinheritedfromthecolonialperiod.Eventhe
rootsofpubliclyfundedresearchstructures,whichhavegrownlargetoday,datebacktothecolonial

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days.However,onekeyareaofchangefollowingindependenceinvolvedtheadoptionofaclosed
economythatreliedheavilyoncentralplanning,restrictedimports,andnationalizationofindustries.
Notuntil1991didIndiaopenitseconomy,whichledtorealcompetitivenessandaneedfor
innovationinallindustries.

http://timreview.ca/article/818

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Indiatodayisavastdemocraticcountrywithapopulationofover1.2billionpeoplewithdiverse
ethnicities,religions,andlanguages.Nearly70%ofIndiansliveinruralareas(CensusofIndia,
2011),andoverpast20to30yearstherehasbeenacontinuousflowofpeoplefromvillages
towardscities,mainlyinsearchofwork(Vinayakam&Sekar,2013).TheIndianeconomyismostly
basedonagriculture,whichdependsontheunpredictableSouthWestmonsoon.Giventhelarge
population,itisaconsiderabletaskforthegovernmentensuresadequateandaffordablesuppliesof

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food,drinkingwater,clothing,housing,education,andhealthcare.

InnovationPolicyDevelopmentandthe
EmergenceofNewInnovationParadigms

ThepeopleofIndia,especiallytheyoung,craveemployment.Thereisalimitationtoemployment

S.TanevM.P.KnudsenT.BisgaardM.S.Thomsen

opportunitiesofferedbythevarioussectorsofeconomy,butthegovernmentdoesprovide

Theobjectiveofthepresentarticleistodiscuss
innovationpolicyissuesrelatedtothreeemerging
innovationparadigms:userdriveninnovation,open
innovation,andvaluecocreation.Itprovidesa
summaryofinsightsbasedoninnovationpolicy
practicesandchallengesinDenmark.Thechoiceof
Danishinnovationpolicypracticesisnotaccidental.In
2008Denmarkimplemented40different...

employmentguaranteeprograms.However,theseprogramsaretargetedatprovidingbasicneeds
andtendtoprovidelabourintensivejobsthathavenolinkwithinnovation.Thereisarealization
that,"tosustainrapidgrowthandalleviatepoverty,Indianeedstoaggressivelyharnessits
innovativepotential,relyingoninnovationled,rapid,andinclusivegrowthtoachieveeconomicand
socialtransformation"(Dutz,2007).TheinnovativepotentialoftheyoungIndianpopulation,if
supportedthroughaneffectiveinnovationecosystem,holdspotentialfordeveloping
entrepreneurshipandprovidingthegrowthandjobopportunitiesthatIndianeeds.
India'snationalinnovationsystem
ThecurrentnationalinnovationsysteminIndiaisavastandcomplexsystemcomprisedof
knowledgeproducerssuchasscienceandtechnologyinstitutions,academia,andinnovating
individualsandknowledgeusers(e.g.,industryproduction/servicesinthepublicandprivatesectors).
VariousgovernmentsinIndiahavegivenprioritytoscience,technology,andinnovation,and
thereforeIndiahasevolvedalargepubliclyfundedR&Dstructure.Therearevariouscouncilsand

SupportingResearchInspired
EntrepreneurialActivitiesinIndia
N.A.Gokhale
Nationsbuiltoninnovation,entrepreneurship,and
productionareabletodominatetheworldeconomy.
However,risktakinghastraditionallybeen
discouragedindevelopingnations.Theuncertainty
andfinancialinsecurityassociatedwithentrepreneurial
activitiesarethegreatestbarriersthatbudding
entrepreneursneedtoovercomeinordertotransition
intosuccessfulentrepreneurs.This...

researchstructuresundervariousministries,whichcatertodifferentresearchareasandwhichare
distributedaroundthecountry.Examplesinclude:
CouncilofScientificandIndustrialResearch(CSIR):establishedin194139laboratories
IndianCouncilofAgriculturalResearch(ICAR):establishedin192999institutesand17
researchcentres
IndianCouncilofMedicalResearch(ICMR):establishedin191130laboratories
DefenceResearch&DevelopmentOrganisation(DRDO):establishedin195848laboratories
Therearemanyotherpubliclyfundedinstitutionsthatperformresearchandtechnologydevelopment
forindustriesrelatedtosteel,oilandnaturalgas,renewableenergy,coal,textiles,railways,road
transport,electronicsandcommunication,environmentandforests,irrigation,andsoon.Thereare
alsomorethan1200privatelyorstatefundedScientificandIndustrialResearchOrganizations
(SIROs).
Inacademia,thereare280universitiesinthepublicsector,includinginstitutionsofhigheducation
suchasIndianInstitutesofTechnology(IITs)andtheIndianInstituteofScience(IISc),inadditionto
morethan150selffinancinganddeemeduniversities.Therearealsomorethan2500inhouseR&D
centrescreatedbycorporations,andtherearenongovernmentorganizations(NGOs)thatuseand
applytheavailableknowledgeforthebenefitofthesociety.
Furthermore,therearefinancialinstitutionssuchastheIndustrialDevelopmentBankofIndia(IDBI)
andtheSmallIndustriesDevelopmentBankofIndia(SIDBI),whichlendsupportforinnovationand
alsoforcommercializationofinnovativetechnologiesbesidesentrepreneurship.Also,variousfiscal
incentivesareofferedbytheDepartmentofScientificandIndustrialResearchtowardstheR&D
activitiesperformedbyinstitutions,academia,andindustryforsupporting,nurturingandleading
theirinnovationstowardsfruition.
Alloftheseinstitutionswereworkingmostlyinastandalonemodepriortolinearizationofthe
economyinthe1990s.Sincethen,strongeffortshavebeenmadetoharnesstheinnovative
capabilitiesofthesestructuresbyconnectingthemtooneanotherandtoindustryandsociety,
forminganinnovationecosystem.
India'sinnovationecosystem
Broadlyspeaking,aninnovationecosystemisacombinationoftwodistinctbutlargelyseparated
economies:i)theknowledgeeconomy(comprisedofknowledgeproducers),whichisdrivenby
fundamentalresearch,andii)thecommercialeconomy(comprisedofknowledgeusers),whichis
drivenbythemarketplace(Jackson,2013).InIndia,theinnovationecosystemincludestheentire
nationalinnovationsystemdescribedintheprevioussection,plusindividualinnovatorsand
entrepreneursmentorsgovernmentpoliciesangel,venturecapital,institutional,andindustrial
fundingmechanisms,intellectualpropertyrightsmechanismstechnologytransfermechanisms
marketinputsandincentives,awards,andotherinnovationrecognitionmechanisms,amongothers.
Ideally,thesevariousstructuresandmechanismsfacilitatethesmoothtranslationofinnovations
throughthevarioussegmentsofacomplexinnovationchainthattakesideasfrom"mindtomarket".

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Thus,thefunctionalgoaloftheinnovationecosystemistoenabletechnologydevelopmentand
innovation.But,howwellisIndia'sinnovationecosystemperformingtoday?AccordingtotheGlobal
InnovationIndex(WIPO,2014),Indiaranks76thamongthe143countriessurveyed,havingfallen10
positionssincethelastreportandhavingfallenrelativetootherBRICeconomies.Asmallerslideof
onepositiondowntherankingsoftheGlobalCompetitiveIndexleavesIndiain60thpositionamong
148countries(Schwab,2013).AsperOECD(2007)sources:
"India'sGERD[grossdomesticexpenditureonR&D]was0.76%in2007,essentially
unchangedsince2000...India'sinnovationsystemisdominatedbyuniversitiesandPRIs
[publicresearchinstitutions]...GovernmentR&Dexpendituresaccountedfor0.47%ofGDP
[grossdomesticproduct]Some73%ofpublicresearchisfundedbyblockgrantswhichare
allocatedonthebasisofnationalresearchpriorities...95%ofbusinessresearchand
developmentactivitiesarefundedbyfirmsthemselves,publicfinancialsupportisnegligible."
Together,theseindicatorssuggestthat,inspiteofalargenationalinnovationsystem,thecurrent
performanceoftheIndianinnovationecosystemappearsweak.Onemayspeculatethatthereasons
forthispoorperformancemayberelatedtofragmentationandalackoffocus:thelegaciesand
mindsetsofthepreeconomicliberalizationeraarestillbeingcarriedforwardbysomeofits
constituentstakeholders.Atleast,thisspeculationfindssupportinthegovernment'sattemptsto
addressmanyofthesechallengesinitsrecentpolicyoninnovation(MinistryofScienceand
Technology,2013).ThepolicyinitiativesundertakenbytheGovernmentofIndiatoimprovethe
innovationecosystemaredescribedbelowbutfirst,thefollowingsectionpresentstheauthor'sview
ofthecurrentchallengesfacingIndia'sinnovationecosystem.
CurrentChallenges
Theauthor'sviewofthekeychallengesfacedbyIndia'sinnovationecosystemandentrepreneurship
ingeneralarelistedanddescribedbelow:
1.Fragmentedpolicyandpolicyimplementation:Therehasbeennocomprehensivepolicyfocusing
oninnovationandentrepreneurshipsofar.Also,themechanismstooperateexisting,
fragmentedpolicieswerenotuniform,whichresultedingapsinunderstandingandfailureto
achievethedesiredeffectsofsuchpolicies.

2.InadequatefundingofR&D:LittlenationalfundingisavailableforR&D:from2011to2012it
wasonly0.88%ofgrossdomesticproduct(NSTMIS,2013).Consequentially,evenlessfunding
isavailabletotheacademicandR&Dinstitutions.OutofthetotalR&Dexpenditureincurredin
thecountry,about63%oftheexpenditureisincurredbythegovernmentitselfandthetotal
R&Dexpenditureincurredbyindustryaltogetherisequivalenttotheamountjustoneglobal
multinationalspendsonitsinhouseR&D(NSTMIS,2013).

3.Difficultandlengthyfundingprocedures:Althoughfundingisavailablefrombanksandpublic
sourcestheproceduresforaccessingsuchfundingareoftencomplex,cumbersome,lengthy,and
bureaucratic,inotherwords,notconducivetoinnovationandentrepreneurship.Moreover,
despitethesedifficultandlengthyprocedures,thesystemseeksimmediatereturns.However,
thereturnsfrominnovationareoftenuncertain,late,ornotquantifiableimmediately.

4.Angel,venturecapital,andseedfunding:Despite100angelnetworksoperatinginIndia(e.g.,
IndianAngelNetworkMumbaiAngels),onlytensofdealsaremadeeachyear,accordingtothe
"ReportoftheCommitteeonAngelInvestment&EarlyStageVentureCapital"(Planning
Commission,2012).Forsuchapopulouscountry,thismagnitudeofdealsisverylowcompared
tothenumbersfromabroadandfallshortofIndiasrequirements.Thereportalsoindicateslow
levelsofearlystageventurecapitalinvestment:aroundUS$240millionperyear.And,here
also,thereareonlyfewhundreddealsperyear.Indianangelsareconstrainedbyregulations
thatmakeinvestmentandexitcumbersome(PlanningCommission,2012).

5.Weaklinkagesbetweenstakeholders:Thelinkagesbetweenindustry,especiallymediumand
smallscaleenterprisesandR&Doracademicinstitutionsareweak.Industryrequiresproven
technologies,buttheinstitutionscanonlyoffertechnologiesatconsiderablyearlierstages(i.e.,
atmostlyalaboratoryorpilotscale),meaningthereisstillmuchworktobedonetobringthe
technologiestomarket.Thereisalsoconsiderablylessfundingandmentorshipsupportavailable
fromtheprivatesector.Thereisnoeasyexchangeofmanpowerbetweentheindustriesand
academiaorR&Dinstitutions,whichlimitstheircapacityformutualunderstandingand
technologytransfer.

6.Nonconduciveeducationsystem:Thegeneraleducationsystemisstilltoofocusedongrades
andcareersandisnotorientedtowardinnovationandentrepreneurship.Thissituationisfurther
worsenedbytheinherentproblemsoflackofinfrastructureandgoodfacilitiesinthe
educationalinstitutionsdelaysinthefundingsystemanddelaysinthefundsorothersupport
reachinginnovationprojects.Whileindustrycravessolutionstotheirproblems,theacademic
institutionsaregenerallytoobusyperformingroutineacademicexercises,churningout
educatedmanpowerthatisoftenillsuitedtoeitherinnovativeindustriesorentrepreneurship.
However,exceptionstothisgeneralviewincludeafewhighendacademicinstitutionssuchas

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IndianInstitutesofTechnologyandsimilarinstitutions.

7.Poorinfrastructurefacilitiesinvillages:Basicinfrastructurefacilitiessuchaselectricity,
Internet,roadsandrail,andeventheavailabilityofaskilledworkforce,arenotevenly
distributedinIndiaandoftenweakinsmallercitiesortownsandruralpartsofthecountry.
Thereby,thereislessscopeforinnovationandentrepreneurshiptoflourishinsuchareas.In
mostcases,innovatorsandentrepreneursmusttravellongdistancesattheirownexpense
toreceivementorshiporothersupport.

8.Riskaversionamongentrepreneurs:Indianentrepreneursoftenseekestablishedtechnologyas
abasisforstartingtheirbusinesstheyarehesitanttotakeoninnovativeideasbecauseofthe
risksinvolved,includingthelowavailabilityandhighcostoffundsthatoftenarrivetoolate.As
aresult,theylookforminimumriskandquickreturns.Thepotentiallyhigherreturnsfrom
innovationtaketimetorealize,andnotenoughentrepreneursarewilling(orable)toacceptthe
risks.

9.Inadequateprotectionofintellectualpropertyrights:InIndia,theintellectualpropertyregime
isweak.Innovatorsdonotgenerallyseekprotectionfortheirintellectualpropertyunlessforced
to.Formostentrepreneurs,patentsandotherformsofprotectiontaketoolongandcosttoo
much.Patentliteracyisverylow,evenamongeducatedinnovators,andthereisalackof
experthelpavailable,exceptinthemedicineandpharmaceuticalindustry.
NewPolicyInitiatives
Asmentionedearlier,theGovernmentofIndiadeclared20102020asthe"DecadeofInnovation",for
whichtheroadmapwouldbepreparedbythenewlyestablishedNationalInnovationCouncil(NInC
innovationcouncil.gov.in).TheNationalInnovationCouncilis"thefirststepincreatingacrosscutting
systemwhichwillprovidemutuallyreinforcingpolicies,recommendationsandmethodologiesto
implementandboostinnovationperformanceinthecountry"(NationInnovationCouncil,2010).The
Science,TechnologyandInnovationPolicy2013outlinesthemajorpolicyinitiativestostrengthenthe
innovationecosystemandgiveaboosttothedevelopmentofinnovationledentrepreneurshipin
India:
"TheguidingvisionofaspiringIndianSTI[Science,Technology,andInnovation]enterpriseis
toacceleratethepaceofdiscoveryanddeliveryofscienceledsolutionsforfaster,
sustainableandinclusivegrowth.AstrongandviableScience,ResearchandInnovation
SystemforHighTechnologyledpathforIndia(SRISHTI)isthegoalofthenewSTIpolicy."
(MinistryofScienceandTechnology,2013).
Below,thekeyinitiativesofthispolicyareexploredinlightofthechallengesidentifiedinthe
previoussection:
1.Funding:Thepolicyannouncesanincreaseinthegrossexpenditureinresearchand
development(GERD)fromlessthan1%to2%ofthegrossdomesticproductoverthenextfive
years.ItalsostatesthataNationalScience,TechnologyandInnovationFoundationwillbe
established"asapublicprivatepartnership(PPP)initiativeforinvestingcriticallevelsof
resourcesininnovativeandambitiousprojects"(MinistryofScienceandTechnology,2013),thus
attractingprivatesectorinvestmentsinR&D.Itfurtherannouncestheestablishmentofafund
forinnovationsforsocialinclusion,"smallideasmallmoney",anda"riskyideafund".These
fundsaredesignedtoaddressthefundingrelatedchallengesdescribedintheprevioussection.
Thepolicydoesnotmentionangelorventurecapitalfundingbuttheabovemeasureswillfulfill
someoftherequirementsofinnovatorsandentrepreneursandtheinnovationecosystem
overall.Italsoaddressesthe"rigidities"incentrallydevelopedplansforinvestmentandassures
aflexibleapproachthatallowsfinetuningofthegovernment'sfiveyearplansinresponseto
rapidlychangingscienceandtechnology,anditaddressesthechallengeofoutdatedprocedures
adoptedforfundsdisbursementforinnovativeprojects.

2.Strengtheningthelinkagesbetweenstakeholders:Thepolicycallsfor"specialandinnovative
mechanismsforfosteringacademiaresearchindustrypartnerships"andfacilitatingthe
"mobilityofexpertsfromacademiatoindustryandviceversa"(MinistryofScienceand
Technology,2013).Thisinitiativeshouldhelpaddressthechallengerelatedtolinkagesand
shouldfacilitateunderstandingwithinsuchpartnerships.

3.Promotionofscience:Thepolicypromotesthespreadofscientificinterestandunderstanding
acrossallsectionsofsociety.Thepolicywill"furtherenableschoolscienceeducationreformsby
improvingteachingmethods,sciencecurricula,motivatingscienceteachersandschemesfor
earlyattractionoftalenttoscience"(MinistryofScienceandTechnology,2013).Intheseways,
thepolicyaddressestheneedforeducationalreforms.

4.Risktakingability:Thepolicyacceptsriskasanintegralpartofavibrantinnovationsystem.
Thepolicyemphasizesrisksharingbythegovernment,whichisslatedto"significantlyincrease
privatesectorinvestmentinR&Dandtechnologydevelopment"and"newfinancingmechanisms
wouldbecreatedforinvestinginenterpriseswithoutfearoffailure"(MinistryofScienceand

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Technology,2013).

5.Intellectualproperty:Thepolicywillseekto"establishanewregulatoryframeworkfordata
accessandsharing[andforthe]creationandsharingofintellectualproperty.Thenewpolicy
frameworkwillenablestrategicpartnershipsandallianceswithothernationsthroughboth
bilateralandmultilateralcooperationinscience,technologyandinnovation.Sciencediplomacy,
technologysynergyandtechnologyacquisitionmodelswillbejudiciouslydeployedbasedupon
strategicrelationships"(MinistryofScienceandTechnology,2013).Thus,thisinitiativeisvery
importantforinternationalcollaborations.

6.Addressingtheinnovationvaluechain:Thepolicyalsoenablesaholisticapproachtothe
complexvaluechainofinnovationbyprovidingscienceandtechnologyinterventionsatalllevels
ofresearch,technologyandmanufacturing,andservicesintheareasofsocioeconomic
importance.Inthisway,thepolicyhasaverypositivenoteandexpressesadesiretoshapethe
futureofIndia.Withtheadvantagesofa"largedemographicdividend"anda"hugeyoung
talentpool",thepolicyforeseestheachievementofnationalgoalsforsustainableandinclusive
growth(MinistryofScienceandTechnology,2013).

7.ParticipationinglobalR&Dinfrastructure:Thepolicyproposesthecreationof"highcostglobal
infrastructureinsomefieldsthroughinternationalconsortiamodels.Indianparticipationinsuch
internationalprojectswillbeencouragedandfacilitatedtogainaccesstofacilitiesforadvanced
researchincuttingedgeareasofscience.ThiswillalsoenabletheIndianindustrytogainglobal
experienceandcompetitivenessinsomehightechnologyareaswithspinoffbenefits"(Ministry
ofScienceandTechnology,2013).
TheScience,TechnologyandInnovationPolicy2013thustriestojointhefragmentedpiecesofthe
Indianinnovationecosystemandbringitintothesharperfocus.Itaddressestheneedtoenhance
scientificunderstandingandskillsamongtheyoungandaspirestopositionIndiaamongthetopfive
globalscientificpowersby2020.Italsolinksthecontributionsofscience,research,andinnovation
withaninclusivegrowthagendawiththeaimofformingarobustandfocusednationalinnovation
system.Importantlythepolicysupportsentrepreneurshipdrivenbyscience,technology,and
innovationwithviableandhighlyscalablebusinessmodels.Akeymechanismisinvestmentinyoung
innovatorsandentrepreneursthrougheducation,training,andmentoring.Thispositivesignsindicate
thatthegovernmenthasfulfilleditsroleonthepolicyfront.Now,itwillbeuptoallthedepartments
ofthegovernmenttobuildinnovativedeliverymechanismstotakethefruitsofthispolicytothe
peopleofthecountry.
OtherGovernmentInitiatives
Inthissection,othergovernmentinitiativesbeyondthescopeoftheScience,Technologyand
InnovationPolicy2013aredescribed.
Leadpaperontechnologyandinnovationforthecurrentfiveyearplan
Indiafollowsfiveyearplansforplanningandimplementation,andthe12thFiveYearPlan(2012
2017)includesaleadpaperon"TechnologyandInnovation"(PlanningCommission,2011),whichsays
that:
"Strengtheningtheinnovationecosystemrequiresaplatformforinformationsharingand
disseminationtoensure:(1)improvedaccesstoknowledgeand(2)supportintheformof
resources,linkages,mentoringandoutreach.Greaterknowledgeofinnovationscan
stimulatetheiradoptionsonalongerscale.Thisdecentralized,openandnetworkedmodel
wouldenableinformationsharingoninnovationsandcollaborationamongstakeholders."
IndiaInclusiveInnovationFund
TheIndiaInclusiveInnovationFundisdesignedto"combineinnovationanddynamismofenterprises
tosolvetheproblemsofthebottomofthepyramidinIndia"(NationalInnovationCouncil,2014).The
initialinvestmentofINR500crores(approximately$83millionUSD)isslatedtoexpand10times.
Thegovernmentwillcontribute20%ofthefund,andtherestwillcomefromfinancialinstitutions,
insurancecompanies,multilateral/bilateraldevelopmentagencies,andIndianandglobal
corporations.Thelifeofthefundisnineyears,anditwillfocusonhealthcare,foodandnutrition,
agriculture,educationenergy,financialinclusion,andenvironmenttechnology,amongotherareas.
InitiativesfromtheMinistryofScienceandTechnology
ThefollowinginitiativeshavebeenundertakenbytheMinistryofScienceandTechnology:
1.BiotechnologyIndustryResearchAssistanceCouncil
2.IndiaInnovationGrowthProgram
3.NationalInnovationFoundation
4.PromotingInnovationinIndividuals,StartupsandMSMEs(PRISM)
5.CouncilofScientificandIndustrialResearchInnovationComplexes

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6.PatentAssistanceProgramsoperatedbytheTechnologyInformation,Forecastingand
AssessmentCouncilandtheNationalResearchDevelopmentCorporation
7.TechnologyBusinessIncubatorsoperatedbytheDepartmentofScienceandTechnology
8.SmallBusinessinnovationResearchInitiative
9.TechnologyDevelopmentandDemonstrationProgram
Programsbyotherministries
Thereareotherschemescreatedbyvariousotherministries,includingthefollowing:
1.VariousprogramsfromtheMinistryofNewandRenewableEnergy
2.InformationTechnologyandResearchAcademyfromtheMinistryofCommunicationand
InformationTechnology
Conclusion
Indiahasalarge,demographicallydiversepopulation,withmanyyoungpeopleseekingemployment.
Thecountryisonapathtogrowth,buttherateofgrowthhasbeenslow.Thegovernmenthas
realizedtherootsofthebasicproblemsandmadeappropriatereforms,mainlyintheareasof
administration,economy,andlabour,asittriestofreeitselffromnegativeaspectsofitscolonial
legacy.Therehasbeenasubstantialthrusttowardscience,technology,andinnovationinpast20
years,andmanyinitiativeshavebeenundertakeninthatdirection.However,theinvestmentsin
science,technology,andinnovationarenotyettranslatingintothedesiredreality.Realizingthatthe
innovationledentrepreneurshipdevelopmentholdspromiseforgrowth,thegovernmenthastaken
majorpolicyinitiativeswithastronginnovationagenda.
Thereareformidablechallengesinrealizingthegoal,butasthisarticlehasshown,theScience,
TechnologyandInnovationPolicy2013isabigstepintherightdirection,becauseitaddressesmost
ofthekeychallengesindevelopinganeffectiveinnovationecosystem.Themaininitiativesare
provisionoffundsandremovingthesluggishnessintheecosystemforinnovationsbyimproving
linkagesandmakingitvibrantinacomprehensiveway.Thepolicyisinplacenow,itssuccess
dependsonitsimplementation.Sometimewillneededbeforeconclusionscanbedrawnaboutthe
policy'sultimateeffectsonthegrowthpath.However,thenewdirectionreflectsstronggrowth
aspirationsandresonateswiththezealandzestoftheyouthwhowishtojourneyontheriskypath
ofinnovationbasedentrepreneurship.

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Dutz,M.A.2007.UnleashingIndiasInnovation:TowardsSustainableandInclusiveGrowth.
Washington,DC:TheWorldBank.
Jackson,D.J.2013.WhatIsanInnovationEcosystem?Arlington,VA:NationalScienceFoundation.
MinistryofScienceandTechnology.2013.Science,TechnologyandInnovationPolicy2013.Delhi:
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Council.
http://www.innovationcouncil.gov.in/index.php?option=com_content&view=ar...
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201112,68thRound.GovernmentofIndia:NationalSampleSurveyOffice.
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PlanningCommission.2011.TwelfthFiveYearPlan:TechnologyandInnovation.Governmentof
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PlanningCommission.2012.CreatingaVibrateEntrepreneurialEcosysteminIndia:Reportofthe
CommitteeonAngelInvestment&EarlyStageVentureCapital.GovernmentofIndia:Planning
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Keywords:economicgrowth,entrepreneurship,government,India,innovation,innovation
ecosystem,policy

Topic:ManagingInnovation

TechnologyEntrepreneurship

EconomicDevelopment

Comments
SubmittedbyDr.A.Jagadeesh(notverified)onWed,2016092811:34

#1

Excellent.
Inabroadersense,innovationisimportanttotheadvancementofsociety
aroundtheworld.Newandinnovativeproductscanincreasethestandardof
livingandprovidepeoplewithopportunitiestoimprovetheirlives.
Breakthroughsinmedicineandtechnologyhavesignificantlyimprovedliving
standardsaroundtheworld.Innovationhasalsoleadtosignificant
improvementsinthewaybusinessesoperateandhasclosedthegaps
betweendifferentmarkets.
Innovationinengineering:
Innovationinengineeringismuchmorethanresearchanddevelopment.It
encompassesanendtoendprocess,suchthatitextractsvaluethrough
implementation.Innovationinvolves:
creatingorgeneratingnewactivities,products,processesandservices
seeingthingsfromadifferentperspective
movingoutsidetheexistingparadigms
improvingexistingprocessesandfunctions
disseminatingnewactivitiesorideas
adoptingthingsthathavebeensuccessfullytriedelsewhere
Innovationcoverstheareafromminorqualityimprovementstocutting
edgeproductsandservices.
Ifwecantfindwaystoinspireagenerationofengineerswithvariedskills,
thisisgoingtobeaprincipleobstacleforgrowthinourslowlyrecovering
globaleconomysaidLidiaBrito,DirectoroftheDivisionofSciencePolicy
andCapacityBuildingatUNESCO.ArecentUNESCOEngineeringReport
showsamarkedshortageofengineersinmanycountries.Althoughthe
generalnumberofengineeringstudentsisincreasingworldwide,the
proportionwhoenrollinengineering,ascomparedtootherdisciplines,is
concernedlydropping.WeneedhandsonchallengeslikeFlyYourIdeasto

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TheGovernmentofIndia'sRoleinPromotingInnovationthroughPolicyInitiativesforEntrepreneurshipDevelopment|TIMReview
motivateyounginnovatorsaboutthepotentialofengineeringinhelpingto
findpracticalsolutionstoissuestheworldmayfaceinthenearfuture.
Suchinnovationmaybeunderthreatfromaskillsgapthatcouldbehitting
theeconomyhard.Itwillseehightechcompaniesfaceashortfallof40
millionoftheskilledworkersneededby2020andbeyond,withaerospace
likelytosuffer,alongwithmotorandthemedicalequipmentsectors.
CharlesChampion,ExecutiveVicePresidentEngineeringatAirbusandFly
YourIdeasPatron,says:Thesefuturefocusedanddisruptiveconcepts
provethatengineeringisntjustabouttechnicalskillsitsabouthavingan
innovativemindsetandacreativeapproach.Butforourindustrytosucceed
inmakingaviationcarbonneutralby2020,weneedaconstantsourceof
freshandinventiveideasfromtheinnovatorsoftodayandthoseof
tomorrow.Ourfuturesolutionsarehererightnowandthroughprojects
likeFlyYourIdeas,wearehelpingthemtobecomearealityforthefuture.
InnovationisextremelyimportanttoacountrylikeIndiaasitisclosely
relatedtoproductivity.Althoughthereareanumberofavenuestoincreased
productivity,innovationisthemostsignificantfactor.
Creativityisseeingwhateveryoneseesandthinkingwhatnooneelsehas
thoughtbefore,Inventionistransformingthosenewthoughtsintotangible
ideasInnovationgoesevenfurther,involvingpreparednesstomixwiththe
commercialworldtoturnnovelideasintoproducts.
Theexpertiseoftheengineeringprofessionisvitaltoconvertinnovative
ideasintorealityforcommonuse.Manyofthecomfortshumankindenjoys
todayhavebeentheresultofinnovativeengineers.Examplesinclude
electricalappliances,transportation,buildings,telecommunicationsand
urbaninfrastructure.Innovationandtechnologyhavebecometwo
inseparablewordsintheannalsofhumanhistory.Engineersdrive
technologyandarethereforeattheforefrontofinnovation.
InIndiatherewereeffortstoharnessthetalentandinnovativespiritamong
peoplebyorganisationslikeNationalInnovationFoundation(NIF),National
ResearchDevelopmentCorporation(NRDC),TePPetc.besidessomeprivate
initiatives(SparktheRise)etc.
Inavastcountrylikeoursthesearepiecemeal.
ThepreviousGovernmentmootedanInnovationnFundofRs5000Crores.
InnovationCentresinEngineeringColleges:
Engineersarebestsuitedtoinnovate.UnfortunatelymostoftheEngineering
CollegeslikeInfrastructurefacilities(likeGoodWorkshop,ElectronicsLab
etc).AProject,INNOVATIONCENTRES)inEngineeringCollegescanbe
startedundertheRs5000InnovationFund.SelectedCollegescanbe
providedtostartagoodworkshopandElectronicsLab.Thiswaythe
Studentscanundertakeinnovativeprojectsandcomeoutwithgood
gadgets.Latertheycanpatentthemandgoforcommercialization.Thisis
thebestwaytospendInnovationFundsothattherewillbeproductivityand
promotionofEntrepreneurship.
Creativity,InnovationandInventionarethePillarsofProgress.
TodayinIndustry,INNOVATEORPERISHistheMANTRA.
Dr.A.JagadeeshNellore(AP)

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