Facilitating Innovation & Entrepreneurship 2 ND GLOBAL FORUM ON BUSINESS INCUBATION

Transcription

1 Facilitating Innovation & Entrepreneurship 2 ND GLOBAL FORUM ON BUSINESS INCUBATION H.K. MITTAL ADVISER & HEAD NATIONAL SCIENCE & TECHNOLOGY ENTREPRENEURSHIP DEVELOPMENT BOARD (NSTEDB) DEPARTMENT OF SCIENCE & TECHNOLOGY, GOVERNMENT OF INDIA. 1

2 Facilitating Innovation & Entrepreneurship OUR ROLE? Area of perpetual Interfacial tension Working at the interface Non linear processes of Scientific, Innovative Entrepreneurial world Linear processes of governance 2

3 HOW DID WE START? MYTHS, ASSUMPTIONS, REALITIES & FACTS : LARGE POPULATION IS A BURDEN POOR COMMUNICATION BAD ROADS SHORTAGE OF ELECTRICTY INADEQUATE TRANSPORTATION, AUTOMOBILE INFRASTRUCT URE LARGE MARKET EDUCATION DOES NOT PROVIDE EMPLOYMENT POLITICS IS REATRDING THE GROWTH LOW FOREIGN EXCHANGE RESERVES 3

4 IGNITION OF CHANGE FOUR MAJOR SPARKS: LIBERALISATION OF ECONOMY IN 1991 Y2K RAISED THE MUTUAL CONFIDENCE SUPPLY DRIVEN: CONVERSION OF KNOWLEDGE WORKER TO KNOWLEDGE ENTREPRENEUR. DEMAND DRIVEN: CHANGING DEMOGRAPHIC PROFILE OF DEVELOPED NATIONS. World statistics in next slide 4

5 DEMAND LEAD CHANGING DEMOGRAPHIC PROFILE 5

6 THE RISE OF INNOVATIVE ENTREPRENEURSHIP IN INDIA Emerging World India is globalising, the world is going thru a major change Resulting in a borderless world where five I s freely flow Investments, Industry, Information, Ideas and Individuals Incubation can be the sixth 6

7 Why Incubation? THE ECO-SYSTEM IN GENERAL IS NOT CONDUCIVE ENOUGH. INNOVATIVE IDEAS MAY HAVE LONGER GESTATION PERIOD. THE SKILL SET OF THE ENTREPRENEUR IS NOT FULLY DEVELOPED. THE NATIONAL POLICY TO DEVELOP A PARTICULAR SECTOR. 7

8 Facilitating Innovation & Entrepreneurship WHY INVEST IN INCUBATION? IN THE KNOWLEDGE ECONOMY WEALTH GETS CREATED THROUGH INNOVATION, IDEAS & CREATIVITY. DO WE HAVE A ECOSYSTEM LIKE SILICON VALLEY & CAMBRIDGE? IF YES PROBABILY THEN WE DON T NEED INCUBATION. NURTURING, MENTORING, SUPPORTING, FACILITATING, CONNECTING, ARE THESE WORDS PART OF OUR INDUSTRIAL POLICY 8

9 INCUBATION & IT S IMPACT ON NATIONAL DEVLOPMENT IS IT POSSIBLE TO SOLVE ALL ECONOMIC PROBLEMS THROUGH INCUBATION? NO! 9

10 Facilitating Innovation & Entrepreneurship IS THE NUMBER OF UNITS IN THE INCUBATORS LARGE ENOUGH TO MAKE AN IMPACT? IN INDIA LESS THAN 0.01% COMPANIES ARE INSIDE THE INCUBATORS AND PARKS. THEY ARE INNOVATIVE KNOWLEDGE BASED TECHNOLOGY DRIVEN & HIGH GROWTH THEY DEVELOP INNOVATIVE PRODUCTS WHICH APART FROM BEING COMMERCIALLY REWARDING ARE SOLUTIONS TO PROBLEMS e.g. Palteer Chips, Vaccines 10

11 Facilitating Innovation & Entrepreneurship IS INCUBATION ONLY ABOUT CUTTING EDGE TECHNOLOGY VENTURES? DEPENDS ON THE GROUND LEVEL CONDITIONS OF THE ECONOMY. IN INDIA WE HAVE INCUBATORS WHICH WORK AT GRASS ROOT AS WELL AS AT CUTTING EDGE LEVEL OF TECHNOLOGY IN FACT FIRST 15 YEARS WE WORKED AT THE MIDDLE LEVEL 11

12 Facilitating Innovation & Entrepreneurship WHAT DO YOU NEED TO SET UP A GOOD INCUBATION PROGRAMME? A POLITICAL WILL AND SUPPORTIVE & INFORMED BUEROCRACY A SUITABLE HOST INSTITUION A GOD GOOD INCUBATION MANAGER FUNNY CAPITAL BACKED BY MENTORS & BUSINESS COACHES SOCIAL SYSTEMS TO ENCOURAGE & DECOUPLE BUSINESS & PERSONAL FAILURE 12

13 Facilitating Innovation & Entrepreneurship PRESENT SYSTEMS & PROCESSES PICTURE COURTESY ALL INDIA MANAGEMENT ASSOCIATION 13

14 INCUBATION & IT S IMPACT ON NATIONAL DEVLOPMENT Initiation of TBI programme Initiated in the year 2000, after 15 years of STEP Programme. With an aim to offer conducive environment to nurture new ideas leading to growth of new knowledge based and technology driven enterprises Primary target : Academic and R& D institutions 14

15 Facilitating Innovation & Entrepreneurship BROAD METHODOLOGY ADOPTED Scouting for Innovation Selection of Innovators, IP evaluation and signing NDA (Non Disclosure Agreements) Service and shareholder agreement with incubatees, whatever is applicable Infrastructure and services to selected incubatees and initiating mentor programme Providing access to technology and related networks Commercialization Activity - entrepreneurial Venture, business plan, market research, consultancy, legal, finance and other support Graduation of the incubatees 15

16 THE RISE OF INNOVATIVE ENTREPRENEURSHIP IN INDIA Profile of Indian Incubator Average Project cost : USD 1mn DST Contribution : 50-70% Average number of tenants : 6 Average Tenancy period : 2 years Successful Enterprises : 4 per annum Survival rate of start-ups : nearly 70% Legal Status : Part of host Institute/ not for profit registered society Self sustainability : 5-6 years 16

17 Facilitating Innovation & Entrepreneurship INCUBATION SYSTEM Focus on IT, BT, Design, Agribusiness, Environment Engg, New Materials Primary target : Academic and R& D institutions A mission mode activity targeting 5 new TBIs every year Different models being tried 17

18 INCUBATION & IT S IMPACT ON NATIONAL DEVLOPMENT Some Examples: Incubators in India Agri Bio Technology at ICRISAT Hyderabad IT & Electronics at IIT Mumbai Bio-Tech & Pharma at ICICI Knowledge Park Design Business Incubator at NID Ahmadabad Advance Composites at CDC Bangalore Virtual Incubator at IIM A 18

19 Facilitating Innovation & Entrepreneurship NEW INITIATIVES.. SEED SUPPORT SYSTEM FOR START-UPS NETWORKING WITH NATIONAL LEVEL ORGANISATIONS INTERNATIONAL CO-OPERATION NEXT GLOBAL FORUM INCENTIVE TO INCUBATEES & CROSS CULTURAL VENTURE PROMOTION 19

20 STEP/TBI LOCATIONS TBI STEP IIT- Roorkee JSSATE-Noida HBTI-Kanpur GNEC-Ludhiana IIM, NID, NIRMA, AHMEDABAD IIT-BOMBAY PUNE UNIV., MITCON, PUNE NSIC-RAJKOT CDC-BANGALORE BEC-BAGALKOT SJCE-MYSORE NITK-SURATHKAL IIT KHARAGPUR ICICI KP, ICRISAT, HYD Anna.Univ. Chennai PSG Coimbatore KEC-Perundurai NIT Trichy VIT-Vellore VIT,Calicut Vellore NITNIT-Calicut 20

21 THE PRESENT SYSTEM & ITS PROCESSES Managing Knowledge including traditional knowledge Encouraging Public Private Partnerships recognizing each others strengths Open to ideas, competition and collaboration and soft landing Creating institutional mechanisms to promote innovation driven enterprises, specialized departments, programmes & incubators Conscious investments in creative ideas, TEPP, HGT, business plan competitions with intel, MicroSoft, IBM, Motorola etc. etc. eg Cell phone without charging, Cell phone Charger 21

22 THE CHALLENGES THAT WE FACE GREAT MIND BUT GREATER MIND SET YET TO LEARN TO NETWORK & COLLOBORATE GREAT INDIVIDUALLY BUT POOR AS A TEAM USUAL THIRD WORLD ISSUES OF DELAYS, INFRASTRUCTURE OPPORTUNITY VS. NECESSITY BASED ENTREPRENEURSHIP CREATING A FERTILE GROUND & STILL BROADER VISION 22

23 THE RISE OF INNOVATIVE ENTREPRENEURSHIP IN INDIA ENABLING ENVIRONMENT IN INDIA CHANGING MIND SET, SKILL SET & DOMAIN KNOWLEDGE OF TECHNOLOGY & ENTRPRENEURSHIP CULTURAL CHANGE STARTED BUSINESS FAILURE GETTING DECOUPLED FROM PERSONAL FAILURE BAR CAMPS PROMOTING E SHIP BRAIN GAIN ( NEXT GENERATION OF NRIs FAMILIAR TO BOTH THE CULTURES), TELECOM INFRASTRUCTURE ONE OF THE BEST IN THE WORLD, IP PROTECTION & GOVT. POLICIES PROVIDE THE RIGHT ENVIRONMENT. NEW HIGH TECH CLUSTERS AFTER BANGALORE AT HYDERABAD, CHENNAI, PUNE 23

24 THE RISE OF INNOVATIVE ENTREPRENEURSHIP IN INDIA ENABLING ENVIRONMENT IN INDIA.contd. HIGH END ROLE MODELS RAGS TO RICHS STORIES, EMERGING SECTORS e.g PHARMA, LIFE SCIENCES, MATERIAL, DESIGN, ICT WITH DOMAIN KNOWLEDGE EXPERTS. MULTI NATIONAL FIRMS ENCOURAGING & TAPPING INNOVATIVE IDEAS THROUGH BUSINESS PLAN COMPETITIONS. INTEL, IBM, MICROSOFT ETC. IN ADDITION TO OUR OWN. BOTTOM UP APPROACH WHERE INNOVATION AND TECHNOLOGY ARE LOCALLY DEVELOPED IN CONTRAST TO CHINA. 24

25 THE RISE OF INNOVATIVE ENTREPRENEURSHIP IN INDIA ENABLING ENVIRONMENT IN INDIA.contd. IGNITION GRANTS & GENIUS GRANTS FOR PEOPLE OUT SIDE THEIR NORMAL DUTY & FOR IDEAS THAT THEY HAVE A PASSION FOR ALONG WITH FREEDOM. FIRMS HAVE BI-CONTINENTAL STRATEGY. IN SILICON VALLEY >50% VC FUNDS PREFER AN INDIAN CONNECTION. THUS INNOVATIVE TECHNOLOGY BASED KNOWLEDGE DRIVEN FIRMS ARE GETTING SEEDED. 25

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