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International Journal of Economics, Commerce and Research (IJECR) ISSN(P): 2250-0006; ISSN(E): 2319-4472 Vol. 3, Issue 5, Dec 2013, 1-12 © TJPRC Pvt. Ltd.


Department of Commerce & Management Studies, Andhra University, Andhra Pradesh, India


Research Scholar, Department of Commerce & Management Studies, Andhra University, Andhra Pradesh, India

ABSTRACT Most discussions on innovation around the world have focused on improving efficiency and productivity in businesses, to stay ahead of the competition curve. However, nearly half the world’s population lives in acute poverty. In India also a large percentage of people have limited access to basic services such as food, water, housing, health and education, Innovation has to play a role not only in finding affordable, quality services and products for people at the bottom of the pyramid, but also mechanisms and platforms have to be created to scale grassroots innovations to generate sustainable livelihood and employment. Challenges such as lack of housing, healthcare, education will require innovations in processes, service delivery, design thinking and human capital as well as stronger institutional infrastructure. In this context India needs an innovation strategy geared towards creating an ‘Indian model of development. Innovation Strategy focuses on parameters i.e Platform, Inclusion, Drivers, Discourse and Eco-System to achieve the desired Development. National Innovation Council play Critical role to build innovation eco-system. Researcher wants to examine Indian innovation Eco-system, and role of National Innovation Council to reshape the system to solve challenges and create sustainable growth.

KEYWORDS: Innovation, National Innovation Council, Eco, System, ‘Indian Model of Development’ INTRODUCTION Innovation today is increasingly going beyond the confines of formal R&D to redefine everything. Today innovation can mean new and unique applications of old technologies, using design to develop new products and services, new processes and structures to improve performance in diverse areas, organisational creativity, and public sector initiatives to enhance delivery of services. Innovation is being seen as a means of creating sustainable and cost effective solutions for people at the bottom of the pyramid, and is being viewed as an important strategy for inclusive growth in developing economies. Realising that innovation is the engine for the growth of prosperity and national competitiveness in the 21st century, the President of India has declared 2010 as the ‘Decade of Innovation’. To take this agenda forward, the Office of Adviser to the PM on Public Information Infrastructure and Innovations (PIII) is working on developing a national strategy on innovation with a focus on an Indian model of inclusive growth. The idea is to create an indigenous model of development suited to Indian needs and challenges

INNOVATIVE INITIATIVES BY GOVERNMENT OF INDIA Right to Information Act 2005 mandates timely response to citizen requests for government information. It is an initiative taken by Department of Personnel and Training, Ministry of Personnel, Public Grievances and Pensions to provide a– RTI Portal Gateway to the citizens for quick search of information on the details of first Appellate Authorities, PIOs etc.


D. Lalitha Rani & K. Sankara Rao

Right of Children To free and compulsory education till completion of elementary education in a neighbourhood school. It clarifies that ‘compulsory education’ means obligation of the appropriate government to provide free elementary education and ensure compulsory admission, attendance and completion of elementary education to every child in the six to fourteen age group. MGNREGA (Financial Inclusion is a job guarantee scheme for rural Indians. It was enacted by legislation on 25 August 2005. The scheme provides a legal guarantee for at least 100 days of paid employment in every financial year to adult members of any household willing to do unskilled manual work related to public work at the statutory minimum wage of 120 (US$2.00) per day in 2009 prices. In 2001 MDMS Became a cooked Mid Day Meal Scheme under which every child in every Government and Government aided primary school was to be served a prepared Mid Day Meal with a minimum content of 300 calories of energy and 8-12 gram protein per day for a minimum of 200 days. Sarva Shiksha Abhiyan Has been operational since 2000-2001 to provide for a variety of interventions for universal access and retention, bridging of gender and social category gaps in elementary education and improving the quality of learning. National Rural Health Mission NRHM was launched in April 2005. The NRHM focused especially on 18 states, with poor infrastructure and low public health indicators. The programme aimed at strengthening state Health systems with a special focus on Reproductive and Child Health (RCH) services and Disease Control Programmes. Aadhar The Unique Identification Authority of India (UIDAI) have been created as an attached office under the Planning Commission. Its role is to develop and implement the necessary institutional, technical and legal infrastructure to issue unique identity numbers to Indian residents. The National Knowledge Commission Is a high-level advisory body to the Prime Minister of India, with the objective of transforming India into a knowledge society. In its endeavour to transform the knowledge landscape of the country, the National Knowledge Commission has submitted around 300 recommendations on 27 focus areas during its three and a half year term. While the term of the NKC has come to an end, the implementation of NKC's recommendations is currently underway at the Central and State levels. National Knowledge Network Is a state-of-the-art multi-gigabit pan-India network for providing a unified high speed network backbone for all knowledge related institutions in the country. The purpose of such a knowledge network goes to the very core of the country's quest for building quality institutions with requisite research facilities and creating a pool of highly trained professionals. The NKN will enable scientists, researchers and students from different backgrounds and diverse

Building the Innovation Eco-System (Role of NInC & SInCs in India)


geographies to work closely for advancing human development in critical and emerging areas.

INNOVATION STRATEGY-NATIONAL INNOVATION COUNCIL India has a long tradition of innovation and a significant pool of qualified people, both within country as well as the Diaspora, presently engaged in innovative activities. This talent pool has to be leveraged to drive the innovation agenda. Further, there is also a need to capture the multiple innovations happening in various domains such as government, R&D labs, universities, and across sectors, to give an impetus to the innovation process in the country. NIC will act as a platform to facilitate this engagement and collaboration with domain experts, stakeholders and key participants to create an innovation movement in India. The aim is to herald a mindset change and create a push at the grassroots level so that more and more people in education, business, government, NGOs, urban and rural development engaged in innovative activities are co-opted and are art of shaping the national level innovation strategy. This Strategy would drive innovation in the country by focusing on the five key parameters. Platform Innovation should be widely distributed over the whole spectrum of economic activity, that is, across sectors (not just “high tech�), and types of innovations (not just formal R&D projects). NIC will provide a broader PLATFORM for Innovations everywhere to include: Products, Services, Organisations & Institutions, Processes, Research and Development, Science & Technology, Governance, Social and Cultural, Mindset. Focus would especially be on recommending policies at the Government level which can have a cascade effect on the innovation economy by facilitating innovations at the right points, as well as easing service delivery. Inclusion The aim is to create a model of inclusive innovation that underlines access, awareness, affordability, sustainability and quality, and fosters innovations at the grassroots (Innovations for/ by the people, Innovations for the Bottom of the Pyramid). Drivers The aim is to involve many divergent voices, views, mode of This would be critical to drive the new knowledge economy and create a paradigm shift in innovation capacity and delivery and for providing environmentally sustainable solutions. NIC will focus on key drivers: Multidisciplinary, Collaborative, Transformative and locally relevant. Discourse Doing things to impact the end result qualitatively and quantitatively. The room for divergent discourse is especially critical in Government and organisational processes.NIC will expand Space for Discourse on Innovation in the country by: Discussions, Debates, Seminars, and Conferences. Eco System NIC will facilitate the creation of necessary ECO-SYSTEMS through: Incentives & Awards, Innovation clusters at universities, Innovative business clusters, Innovation in MSMEs, Organisational Autonomy & Flexibility, Policies & Programmes, New Institutions & Infrastructure, Risk/ Venture Capital, Intellectual Property/ Patents.

INNOVATION ECOSYSTEM An innovative eco-system must facilitate the birth of new ideas and also provide platforms for the successful


D. Lalitha Rani & K. Sankara Rao

exploitation of these ideas. The strategic direction and quality of the innovation eco-system drives value creation and the nation’s development agenda. According to Lundvall, ‘the Innovation system consists of the elements and relationships which interact in the production, diffusion and use of new, and economically useful, knowledge…and are located within or rooted inside the borders of a nation state’13. India needs to stimulate its innovation eco-system not only to develop new products and services, but solutions for the country’s inclusive growth strategy. It is a dynamic system shaped by the interactions within and across multiple players such as Government, firms, schools/education and research institutions, finance, individual innovators, customers/users, NGOs and media. This horizontal layer interacts with and influences the innovation activity across verticals such as health, education, urban sustainability etc.

Source: National Innovation Council Figure 1: Innovation Eco-System

ROLE OF NATIONAL INNOVATION COUNCIL (NInC) To spur the innovation eco-system to meet the challenges of inclusive growth and development, the National Innovation Council will drive the following accelerators or initiatives: State Innovation Councils (SInCs) to Foster Innovation Thinking at the State Level NInC is facilitating the setting up of State Innovation Councils in each State to create a cross-cutting system to boost innovation performance in the country. The State Innovation Councils will replicate at the State level what NInC is undertaking at the national level. The Councils would drive the innovation agenda in the states and harness the core competencies, local talent, resources and capabilities to create new opportunities. State Innovation Councils are expected to drive the innovation agenda in the States and to harness core competencies, local talent, resources and capabilities to create new opportunities with the objective of inclusive development. Each State Innovation Council will support its respective State Government to promote innovation in the State; encourage young talent and local universities, colleges, medium and small scale industries (MSME), and R&D institutes; map opportunities for innovation in the State; identify and reward talent in innovation and disseminate success stories; organise seminars, lectures, workshops on innovation; create a State innovation portal to educate and drive awareness or innovation; and provide input into the Innovation Roadmap 2010-2020 for the State.

Building the Innovation Eco-System (Role of NInC & SInCs in India)


State Innovation Ecosystem A look at the factors and relevant actors whose interactions will determine innovative performance in the state.

Source: Arnold & Kuhman (2001) Figure 2 Strategic Lenses for Driving Innovations Each of the strategic lenses will enable insights into the condition and quality of innovation in that domain and the aspects that need to be addressed to improve the innovation effort at the State level by addressing gaps. The Innovation Eco-system in the State may be analyzed through 10 strategic lenses: Governance, S&T, Markets, Education, Research & Skills, Global Competitiveness, Information, Land, Climate & Environment, Enterprise Development, Finance, and Citizens’ Expectations & Service Delivery. Governance 

Policy interventions for sustainable innovations.

Process re-engineering for Improving Service Delivery.

SWOT analysis.

IPR (with focus on Geographical Indications of Goods).

Directory of asset and estate management.

Framework for technological innovation and Technology Transfer/ acquisition.

Stimulating Enterprises.

Identifying new geographies and opportunities.


D. Lalitha Rani & K. Sankara Rao

Systematic attempts to track innovation in the State across key sectors.

Physical locations earmarked for innovations.


Procurement Policies: Guidelines for Promoting Innovative Products.

PPP models.

S&T 

S&T interventions needed to drive innovations in the State

Focus on high tech products and enhancing manufacturing capabilities

Product Design and adaptation

Access to technologies

Addressing Bottom of Pyramid needs

Efficient deployment of relevant technologies/ solutions.

Markets 

Commercialisation strategies

Industry-Academia Interface

New Markets: Focus on Bottom of Pyramid

MSMEs and unorganized enterprises

Market diversification strategy

Licensing for new products & Patents.

Education, Research & Skills 

Driving research and education focused on generating innovation in the particular State

Fostering industry-academia linkages for knowledge transfers

Creating focused Clusters (also supporting NInC Clusters)

Human resources in Management of Innovation

Adequate supply of well-trained scientists

Institutional Capacity Building

Platforms for collaboration (Portals, leveraging NKN)

Innovation oriented school/ university curriculum

Open Universities and Design Schools

Building the Innovation Eco-System (Role of NInC & SInCs in India)


Land, Climate & Environment •

Impact on sustainability

Enterprise Development 

Exploring strategies for creating enterprises ‘for/of/by’ the people at the bottom of the pyramid

Focus on MSME and Unorganised sector

Generate productive income and employment.

Finance 

Current gaps and challenges

Evolving Funding mechanisms for technology acquisition

Risk/ Venture capital eco-system

Allocation of Innovation-specific Funds

Investment in R&D in the State by industry and government


Linkage with proposed Fund of Funds

Leveraging District Innovation Fund (Rs. 1 crore)

Citizen’s Expectations & Service Delivery 

Steps for improving delivery of services, products, processes for citizens

Process-re-engineering with focus on user experience and efficiency

Improving service delivery mechanism with a focus on transparency and accountability.

Sectoral Innovation Councils to Drive Innovative Strategies in Key Sectors and Prepare Multiple Roadmaps In order to drive innovative strategies in key sectors and create multiple roadmaps the NInC is encouraging the creation of multiple Sectoral Innovation Councils aligned to Union Government Ministries which would enhance innovation capabilities in respective sectors. Sectoral Councils will Create Innovation strategies for each sector. They will also provide a framework of functioning and standards for scalability in the sector. The key verticals will be:• Health • Education• Energy • Food • Environment • Water • Sanitation • Transport • Commerce • Manufacturing • Products • Public Services • ICT • Biotech • Nanotech • Genetics • Materials • Space • Ocean • Defense • Creative Industries • Design • Organization Inclusive Innovation Fund to Create a Viable Funding Platform for Solutions Aimed at the Bottom of the Pyramid The India Inclusive Innovation Fund (IIIF), conceptualized and designed by the NInC, seeks to bridge the gap between two ostensibly conflicting objectives of social impact and economic returns by providing enterprise financing to socially-focused innovative enterprises. Objectives Financing socially-focused innovations by Indian entrepreneurs and innovators who address key development challenges among citizens in the lower half of the income pyramid, in critical areas such as healthcare, energy, and


D. Lalitha Rani & K. Sankara Rao

livelihood. Offering scalable, self-sustaining solutions to Indian socio-economic challenges. However, these innovators face a shortage of venture financing, tailored to the unique requirements of socially-focused inclusive innovation. Composition of IIIF A SEBI-registered venture capital fund, the IIIF will receive 20% of its capital from the Government of India, with the remainder drawn from banks, financial institutions, insurance companies, and bilateral / multilateral development agencies. An initial corpus of Rs. 500 crore is being raised with contributions from public sector banks, multilateral agencies and other stakeholders. The Hon’ble Finance Minister has already announced an initial contribution of Rs. 100 crore (US $20 million) as seed money for the Fund. In-principle commitments to the tune of Rs. 250 crores have been received from various Financial Institutions. Innovation Clusters to Create Regional Hubs of Innovation The Innovation Clusters initiative seeks to bring out the needs of both industry and academia and provide a means of addressing the needs through pro-active regional ecosystems of collaboration. NInC will catalyse and facilitate creation of such innovative clusters through Cluster Innovation Centers (CICs) which will act as hubs for connecting various regional/national actors and stakeholders in symbiotic relationships. These CICs will then drive need based innovation in the clusters connecting demand to supply and sharing information/knowledge among the stakeholders

Figure 3 Innovation Centres in Universities to Encourage Synergies NInC proposes to identify and facilitate the development of 20 University Innovation clusters across the country where innovation would be seeded through Cluster Innovation Centres. The CIC will provide a platform for the university and its partners to forge linkages between various stakeholders from industry and academia, initiate and assist innovation activities, encourage innovations in curricula and act as a catalyst and facilitator. It will also work closely with other industry clusters in its region. An initial pilot with University of Delhi has commenced and received overwhelming response from the student community. National Innovation Portal to Galvanise Resources on Innovation and Create a Platform for Idea Exchange The India Innovation Portal is envisaged to network people, ideas, experiences, and resources to galvanize the innovation community in India. The portal is an information aggregator and is intended to become a one-stop-resource on innovations in the country.

Building the Innovation Eco-System (Role of NInC & SInCs in India)


The Portal has classified various innovation resources under Knowledge, News, Events, Media, and Directories and offers each user the power to personalize the portal to suit one’s needs. The Portal is accessible at State Innovation Councils can also share their initiatives and upload best practices on this portal. They can also access all the resources available here for their benefit. Design Innovation Centers (DICs) Envisaged as autonomous, specialized design research institutions for creation of an eco-system of design thinking, innovation and education in the country. Primary Aim: Scouting for innovations in social and economic domains and offering a creative design education. Identification of a regional focuses eg. Local crafts, local industry, environment needs, skills development. Location: NInC proposed co-location of DICs in existing institutes of eminence to leverage academic and infrastructure resources of the host institution. Current Status: Identification of 5 host institutions for co-location of DICs by MHRD: IIT Mumbai, IIT Delhi, IIT Guwahati, IISC Bangalore, and Delhi University. Expectations from States: SInCs may take the lead in creating DICs at the State level based on local needs and challenges. Awards and Competitions to Incentivise and Reward Innovation in the Country The Office of Adviser will also facilitate an incentive structure to promote innovations by instituting national/state/district awards and competitions. These awards and competitions will be focused on providing incentives for specific innovations rather than rewarding excellence in general. These specific innovations would be selected on parameters defined by the National Innovation Council, with the primary focus being on inclusive innovation, and driven by current needs and challenges whether in energy, urban sustainability, environment, public service delivery etc. Focus on Core Competencies to Enhance Global Competitiveness The Office of Adviser would also focus on driving innovations in key sectors where India has a competitive edge to further strengthen the benefits and value in these sectors. Strategies and policies would be recommended to further spur innovations in high growth sectors such as biotechnology, pharmaceuticals, automotive components, textiles, finance, Information Technology, software, and IT enabled services (ITES). Outreach to Create a Culture of Innovation and Herald a Mindset Change Outreach activities will be critical in conveying our message to the public and also in involving various stakeholders to spur innovation efforts across the country. This will include national and regional meetings with stakeholders, conferences at all levels, seminars, workshops and an annual report on innovation published by our office. Apart from this there will be a website of the office which will talk about innovation, and as discussed earlier there will be a dedicated innovation portal to create a knowledge community in the International Collaborations to Leverage Global Thought and Create Partnership Forums Ideas and innovations are enriched and refined through collaborations and interactions that often transcend national boundaries. In the era of globalisation any national level strategy that does not take stock of the activities and


D. Lalitha Rani & K. Sankara Rao

breakthroughs taking place across the globe will not be able to cultivate a strong national innovation culture. The Office of Adviser will develop platforms for collaboration and engagement with other countries to understand their views, ideas and strategies on creating an innovation ecosystem. These cross-cultural exchanges will stimulate and add value to our views on innovation. These collaborations could be in the form of inter ministerial exchanges, bilateral exchange forums or through facilitating linkages at the grassroots level.

CONCLUSIONS Innovations require not just inputs and capacity but also a political economy of reform. This involves creating a constituency for innovation where Government, academia, industry and the citizenry are all participants in the innovation movement. It is about creating an innovation eco-system not only concerned about creating high-tech products, but about enhancing the quality of life for everybody by creating sustainable solutions and changing processes and mindsets. The time is right for India to blaze its own trail by creating a model of Inclusive Innovation specific to the country’s needs and development goals.


Unleashing India’s Innovation: Towards Sustainable and Inclusive Growth, ed.M. Dutz, Editor, 2007


‘Innovation Nation’, Department for Innovation, Universities and Skills, Government of UK, March 2008


‘Innovate America’, Council on Competitiveness, 2004


‘India 2039: Climbing the Global Technological Ladder’, ADB, 2009


‘Innovate India’, Confederation of Indian Industries, 2007


‘Putting knowledge into practice: A broad-based innovation strategy for the EU’, Commission of the European Communities, 2006


OECD Innovation Strategy,, 2007


‘A strategy for American Innovation’, Executive Office of the US President,2009


National Innovation Systems, OECD, 1997

10. ‘Inclusive and Frugal Innovation, Stimulating the Innovation Eco-system’, A.Maira, Planning Commission, 2010 11. ‘The Fortune at the Bottom of the Pyramid: Eradicating Poverty through Profits’, C K Prahalad, 2004 12. The New Age of Innovation: Driving Co-Created Value Through Global Network’, C K Prahalad, 2008 13. ‘Innovation’s Holy Grail’, C.K. Prahalad and R.A. Mashelkar, Harvard Business Review, July-August 2010 14. ‘Value for Money and for Many’, R.A. Mashelkar and Sushil Borde, Technology Review, India edition, February 2010 15. ‘Gandhian Engineering is not just for the poor’, R.A. Mashelkar and R. Sridhar,( 16. Reinventing Public Service Delivery in India, ed., V. Chand, 2006 17. ‘Indian Innovation System: Perspective and Challenges’, Technology Exports,A. Gupta and P.K. Dutta, 2005 18. Start-up Nation: The Story of Israel’s Economic Miracle, D. Senor and S. Singer,2009

Building the Innovation Eco-System (Role of NInC & SInCs in India)

19. From Jugaad to Systematic Innovation: The Challenge of India, R. T. Krishnan,2010 20. ‘OECD Reviews of Innovation Policy: China, 2007 21. Engineering Solutions for the Base of the Pyramid, ASME, 2009 22. Does Government promote or hinder Innovation?� Economist Online debate, March 2010 23. NESTA 24. Adviser to the Prime Minister: 25. National Innovation Council: 26. National Knowledge Commission: 27. National Knowledge Network: 28. National Innovation Portal: 29. India Biodiversity Portal: 30. Teachers of India: 31. India Environment Portal: 32. India Energy Portal: 33. India Water Portal:


1 building the innovation full  

Most discussions on innovation around the world have focused on improving efficiency and productivity in businesses, to stay ahead of the co...