Climate Innovation and Entrepreneurship Center (CIEC) Business Plan: India 28 November 2011 Presentation to Roundtable on Indo-European cooperation on climate research & innovation
Agenda 1. Climate Innovation Centers (s) 2. Stakeholder engagement process 3. Gap Analysis & Business Model 4. Implementation & Oversight 5. Financial Plan
Climate Innovation Centers Key Success Factors: A coordinated and holistic approach to innovation Based on local context, market needs and opportunities Aggregates existing country initiatives Leverages public-private partnerships and resources Networked nationally and internationally facilitating collaboration
s fill gaps and complement existing downstream programs Stage of Country Development Developing MIC Industrialized Some basic research in MICs; results from developed countries can be shared at this level Government and academic basic R&D s Gap where promising developing country innovation languishes Govern ment and other innovati on progra ms (eg, US SBIR) Valley of Death Existing Programs: Carbon finance, CIF/CTF, GEF, IFI lending ------------------------------- Some limited private sector Niche sustainable investors VC and other early stage private finance ----------------------------------- Private technology innovators Lowincome IFI programs Local and some multinational private sector Commercial debt and public equity markets --------------------------- Multinational technology manufacturers Conceptualization Early-growth Scale-up Full deployment Stage of Technology Development government = private sector = Mulitlaterals, IFIs = gaps in capacity =
Extensive six month+ process to develop Business Plan Business plan development process: bottom-up 150+ stakeholders engaged Stakeholder identification and outreach Sector mapping and tech prioritization Workshop 1: Gap & need identification Follow up: Quantitative analysis, 1on1 interviews Workshop 2: Model design Develop business plan with key stakeholders infodev mobilizes a vast network of in-country partners including; private sector, government, financiers, NGOs, academia, entrepreneurs and incubators. (Sample of Indian stakeholders)
Technology Priorities of CIEC TR MD AF RS BM IR EC WF PO EI GI SI AT Evaluation Criteria Technology Readiness Market Demand Availability of Funding Clear, Ready Stakeholders Business Model Leverage of Indigenous Resources Entrepreneurial Capacity Workforce Policy Economic Impact GHG Impact Social Impact Already on Track Stakeholder Feedback Prioritized Technologies 1. Water 2. Energy Efficiency 3. Agriculture 4. Solar 5. Transportation 6. Bio-energy
Design Process Gaps Needs Solutions Identify gaps through stakeholder engagement Identify needs to address the gaps Design solutions/activities to meet those needs
Major gaps in five core areas Gaps along the value chain technology, company, finance, market, and policy
Example gaps preventing climate innovation in India Technology Supporting local and adapted technology innovation Gaps Needs R&D conducted in isolation without market inputs Reduce fragmentation and lack of knowledge of R&D opportunities Many technologies stuck in labs and never see the Standardize contractual agreements and commercial terms market with industry Company Building workforce capacity and a pipeline of sustainable enterprises Gaps Needs Lack of end-to-end support Contracts between service providers and service users can be standardized Financing paired with credible services providers to ensure symbiotic use of funding and advisory services Finance Ensuring access to flexible risk capital Gaps Needs Lack of Valley-of-Death financing Bridge valley of death funding gaps with earlier stage financing options Fragmentation of existing financing sources in market Reduce fragmentation and lack of knowledge of funding options available Lack of debt finance from banks Standardize contractual agreements and commercial terms with banks Markets Creating new and expanding existing local and global markets Gaps Needs Technology entrepreneurs and innovators often lack Research and tracking of market demands and trends market information to create viable business Identify market needs, and match them to available technologies Policy Informing, linking and transforming innovative policy mechanisms Gaps Needs Lack of policies to create viable clean technologies Provide market and technology inputs from industry and experts markets in the SME sectors to policy makers Work with policy makers and government to raise awareness
Mapping Market Gaps to Center Business Model Gaps/Needs Solutions Technology Finance Company Market Regulatory Access to Finance Advisory Services Enabling Environment Access to Information Access to Facilities
The India CIEC: Business Model
Finance Risk Capital Fund Investment Facilitation Capacity Building Mentor Training Education and Events The India CIEC: Business Model Ecosystem Development R&D Collaboration Markets and Policy India CIEC A hybrid approach: Central hub and networked cells. Advisory Services Innovation Cell Network Central center based in Delhi 1 Industry Service providers Mentors Cells formed in major cities as hubs for service Facilities delivery, linking and accrediting existing service providers: Building capacity where needed 2
Implementation and Oversight infodev Oversight Board Government of India Partners Private Sector Partners Management Team Investment Committee Capacity Building Ecosystem Development Finance CIEC Host (e.g. incubator, university etc) CIEC Fund Manager
Financial Plan 55% of the total 4 year budget is allocated to direct investments into high impact technologies Center Sustainability: Almost 70% self sustaining after 10 years US$ 7M (INR 32Cr) for Capacity Building & Ecosystem US$ 9M (INR 42Cr) for Investments
Larger vision: network provides mechanisms for collaboration Company: WinAfrique Country: Kenya Product: Hybrid RE for telecom towers Company: ElectroCell Country: Brazil Product: Fuel cells & batteries Company: Craftskillz Country: Kenya Product: Off-grid wind turbines Company: InnovLite Country: India Product: LED lighting WinAfrique needs assistance in accessing regional markets for exporting ElectroCell needs to locate manufacturing facilities in China Craftskills needs to source lowcost LEDs to develop turnkey solutions InnovLite needs access to technologies & capabilities to lower costs of components Activities of Global Network Knowledge Platforms Demand aggregation B2B Forums Sharing Best Practice Tech Transfer and collaboration Competitions and A2F programs 15