Business Incubation in Academia Experiences at IIT Bombay Poyni Bhatt SINE, IIT Bombay, India for infodev Asia and the Pacific Regional Workshop 2007 4.10.2007
Overview Incubation at IIT Bombay: Introduction Challenges Dealing with inertia Intellectual Properties Sustainability Building an ecosystem Concluding remarks
Incubation at IIT Bombay: Introduction Pilot incubator at IIT Bombay in 2000. Business Incubation formalised in 2004 by setting up SINE IIT Bombay- One of the seven Indian Institutes of Technology set up under an Act of the Indian Parliament Incubator infrastructure spread over 10000 sq.ft. with 17 company offices Funding support from Dept. of Science & Technology, alumni and IIT Bombay Board spectrum technology business incubator, admitting companies with technology links with IIT Bombay Incubation support: Physical infrastructure & shared resources, Business network support, Advantage of ecosystem
Setting up incubator - dealing with inertia Priorities within the university : Academics & Research Target audience- faculty & students R&D vs. commercialisation Tech. transfer/ consulting vs. entrepreneurship High paying job vs. risky entrepreneurship Lack of awareness, conducive environment Relationship with the host institute Conflicts of interests, activities Incubation model, focus Require hard selling of the concept, infusing commercial ethos in academia, appropriate policies & processes
SINE Broad Spectrum of Incubation Model Technology Incubation *Advanced Technologies *Appropriate Technologies Economic Strategic Social Wealth Technology Direct Social Benefit
Intellectual Properties (IP) IP commercialisation in different forms Tech transfer to existing industry players Undertaking consulting assignments, commercial projects In form of entrepreneurial ventures IP valuation different approaches required for IP transfer in favour of existing players and for entrepreneurial ventures Customised equity based consideration for IP transfer for incubatees Distinct mechanism created for IP transfer for incubatees, IP rights flow back to the institute in case of failed ventures For IPs generated by the incubatees - ownership rights rest with the incubatees
Sustainability Business activities Consideration model balance required between incubator sustainabilty & being less onerous for the incubatees SINE s consideration model: Equity Subsidised rent Small percentage of revenue share Choice of business activities and appropriate consideration structure key for long term survival of the incubator
Building an ecosystem Synthesising entrepreneurship related activities on the campus: Incubation: business support, mentoring & networking Academic activities: research & education in entrepreneurship at School of Management Student activities focusing on entrepreneurship: ecell, Ideas competition, business plans competition, awareness camps, esummit Setting up Seed Fund Creating a network: mentors, experts, professional services Bringing together all stake holders: Government, academia, students, alumni, industry, investors, commercial banks Formal association with organizations focusing on entrepreneurship
Concluding Remarks - Business Incubators Business incubators work best when they are close to knowledge centres, but Change in approach and generating ecosystem on the campus is more important (and difficult) than physical infrastructure All stakeholders must be involved. Government / development agencies support very crucial. Incubation focus needs to be on local strength. Business model to be customised for local situation. Important : insulate the university from the impact of commercial liability
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