Role of Government in Encouraging Innovation

usance OF judicature IN support intention 12/4/2011 strategic blueprint Management Authored by Nandini Kapur (D326) Kanika Katyal (D325) ROLE OF government activity IN load-bearing(a) mental hospital ROLE OF GOVERNMENT IN ENCOURAGING foot S T R AT E G I C I N N O VAT I O N M A N A G E M E N T Contents EXECUTIVE compend .. 2 INTRODUCTION. SCIENCE AND TECHNOLOGY POLICY 4 convey INDUCED INCENTIVES FOR knowledgeability 4 TECHNOLOGY INCUBATION AND cultivation OF ENTREPRENEURS 5 SUPPORT INTERNATIONAL PATENT PROTECTION IN ELECTRONICS & IT (SIP-EIT). 6 multiplier factor GRANTS SCHEME 6 NATIONAL mutation FOUNDATION TECHNOLOGY PROMOTION, outgrowth AND UTILIZATION (TDPU) .. 7 technology study and demonstration Program (TDDP) 7 Technopreneur Promotion Programme (TePP) . 8 INNOVATION OF SCIENCE out of bounds FOR proclaim RESEARCH ( exhort) . 8 CONCLUSION . Page 1 ROLE OF GOVERNMENT IN ENCOURAGING INNOVATION EXECUTIVE SUMMARY Government plays a vital usage in any natio nal revolution system, in that it formulates policies that whitethorn or may not be conducive to transaction environment and may or may not reward entrepreneurial quest for innovative products. It further creates an basisal framework which may in varying degree support basic and advanced inquiry in universities, industrial R&D, and grass-root regenerations including in small and medium-sized enterprises (SMEs).The Government excessively determines whether, in which attention sectors, and to which degree it welcomes foreign participation, e. g. in form of foreign consume investments (FDI) and whether or not it would like foreign firms to engage in R&D activities on domestic soil. This paper describes the Government of Indias activities that influence, in a flash or indirectly intentionally or unintentionally, Indias universe system. It past moves on to how innovation can be encouraged in the land, and how the stallion process can be expedited by Governments role in pol icy making. Page 2ROLE OF GOVERNMENT IN ENCOURAGING INNOVATION INTRODUCTION The inability of India to adequately provide for its induce population no longer reflects a failure of implementation, but kinda of a failure of innovation. In India, innovation is emerging as ace of the most main(prenominal) rubrics in the discourse on how to bring near great and more consistent economic and social tuition. One observes steady growing investments in R&D across the agricultural, the background up of national and state innovation bodies, as well as the accounting entry of government-sponsored innovation funds.Despite widespread agreement on the importance of innovation in India, there ar wide gulfs between different conceptions of innovation and the path India that should take towards securing benefits through investments in innovation. India needs more economic innovation that produces more frugal cost products and services that ar inexpensive by people at low trains of incom es with issue compromising the safety, efficiency, and utility of the products. The country also needs processes of innovation that are frugal in the resources mandatory to produce the innovations.The products and processes must also return frugal impact on the earths resources. The Government of any country plans and formulates policies that affect the art environment and its way of operation. Such policies can reward or deter entrepreneurial quest, can either encourage or be an stoppage to innovation. Page 3 ROLE OF GOVERNMENT IN ENCOURAGING INNOVATION SCIENCE AND TECHNOLOGY POLICY Since independence from the British rule in 1947, India has been investing a significant part of its resources, in creating quality institutions of high education and research.In 1958 Indian Government passed a scientific form _or_ system of government Resolution 1958, which stated The primordial to national prosperity, apart from the spirit of the people, lies, in the modern age, in the effectiv e combination of three factors, technology, raw materials and enceinte, of which the archetypical is perhaps the most important, since the creation and adoption of new scientific techniques can, in fact, make up for a deficiency in natural resources, and abbreviate the demands on capital.But technology can only grow knocked out(p) of the study of science and its applications. In keeping with this objective the Government has open up a number of scientific publications in regional languages for school children and different groups in the society to increase scientific awareness in India. These publications are available to public at large mostly at subsidized, cheap rates. Finally, in 2003 a Science and engineering science Policy was announced, which recognized the ever-changing context of the scientific enterprise.The new policy has put greater emphasis on innovations to solve national problems on a sustainable basis. For this purpose it even ended the insistence on indigen ous exploitation of technology so as to master national needs in the new era of globalization. One of the concrete, declared objectives is to promote multinationalist science and technology cooperation towards achieving the goals of national posement and security, and make it a key element of our international relations.Dietrich Kebschull, India Representative of the German federal states of Hamburg and SchleswigHolstein utter Indian Government has provided valuable backing for key high-tech sectors such as Biotechnology, Pharmaceuticals, IT and IT-enabled sectors, e. g. by providing extensive policy and infrastructural support through setting up of technology parks and continuing change of communication facilities. Indian Government actively tries to foster entrepreneurship, for instance by encouraging spin-offs of R&D institutions to promote technology transfer.Increase of new ventures (e. g. start-ups) is an important political aim. STATE INDUCED INCENTIVES FOR INNOVATION The Government has launched several innovation backing programs. According to information provided by the Technopreneur Promotion Programme (TePP) at surgical incision of Scientific & Industrial search, S&T budget has been increased importantly in previous years. No project application, recounts an official, has been rejected on account of financial constraints. 20 outreach centers take on been established in diverse parts of the country to facilitate support programs.Whereas focus of the funding programs was up to 2007 as such on innovations and not on particular sectors, in the 11th Five-Year Plan (2008-2012) the focus is to be put on niche technology theater of operationss like nanotechnology, biotechnology and ICT. Page 4 ROLE OF GOVERNMENT IN ENCOURAGING INNOVATION The processing time for TePP applications is typically save 3 to 4 months with 20% acceptance rate. Rejections, asserts an official working with TePP, are invariably given with feedback.Another senior officia l in DST points out that all scientific ministries at administrative level are headed by scientists and technologists. The posting of scientists in key positions in Ministry of Science and applied science (MST), the nodal dominance in the Government for funding innovation projects and incubating activities, says this official, are done measuredly to ensure that there is less bureaucracy in the functioning. To bring grass-root level into contact with the formal sector, universities and other research centers, a National presentation Foundation had been established.In Dec. 2007, Indias surgical incision of Telecom announced a USD 2. 5 billion package to fund innovations in communications technologies. Entrepreneurs, SMEs, universities and NGOs that have developed communication technologies may seek funding for the commercial roll-out of their innovations, peculiarly those linked to improving quality of services or making telecom operations more economical Also the New Millennium India Technology Leadership Initiative (NMITLI) program is worth mentioning.This program has been launched with an intention to go beyond todays technology and seeks to build, capture and retain for India a leadership position by synergizing the best competencies of publicly funded R&D institutions, academia and private industry An official at German Embassy in New Delhi says local Government supports those foreign SMEs that dont have enough resources to start their own R&D units, by providing facilities / incubators, curiously via research institutions like Indian Institute of Science (IISc) and Society for Innovation and maturement (SID), both in Bangalore, to settle down in India and also to cooperate with local research institutes and firms. Additionally, India also offers tax incentives for R&D operations in the country. For example, white plague incurred on R&D may be deducted from corporate taxes with a weighted average of 150%. For a detailed account of financial incenti ves, see DSIR (2006).TECHNOLOGY INCUBATION AND DEVELOPMENT OF ENTREPRENEURS Department of Information Technologys ( dit) Technological Incubation and maturation of Entrepreneurs ( soar upwards) scheme was launched in the year 2008. The purpose has multipronged approach in the area of Electronics, ICT and Management. Some of the full(a) objectives of the scheme include the following. ? Setting up and strengthening Technology Incubation Centres in institutions of higher learning, nurture Technology Entrepreneurship Development for commercial exploitation of technologies developed by them Promoting product oriented research and emergence ? Page 5 ROLE OF GOVERNMENT IN ENCOURAGING INNOVATION ?Encourage development of indigenous products and packages and bridging the gap between R&D and commercialisation. At present the scheme is being implemented at 15 TIDE centers. Eventually the scheme proposes to support 27 TIDE centers and 2 virtual incubation centres over a period of 4 years. S UPPORT INTERNATIONAL PATENT PROTECTION IN ELECTRONICS & IT (SIPEIT) SCHEME In order to encourage filing of international patents, a Scheme obtain International Patent Protection in Electronics & IT (SIP-EIT) has been put in place. The Scheme Supports International Patent Protection in Electronics & IT by SMEs(Small and Medium Enterprises) and Technology Start-Up Companies.Under this scheme, SMEs and Technology Start-up units will be reimbursed up to 50% of authentic cost, up to a maximum of Rs. 15 lakhs per application, incurred in filing international patent applications in Electronics and ICT domain for their indigenous inventions. Through this scheme DIT aims to encourage indigenous innovation and enable the companies to capture global opportunities in the area of Electronics and Information Technology. MULTIPLIER GRANTS SCHEME Multiplier Grants Scheme (MGS) encourages collaborative R&D between industry and academics/ R&D institutions for development of products and packages an d bridge the gap between R&D and commercialization. NATIONAL INNOVATION FOUNDATIONThe main goals include providing institutional support in scouting, spawning, sustaining and scoring up grassroots green innovations and helping their transition to self funding activities. NIF seeks to achieve this goal by drawing upon the HoneyBee network and its collaborating partners. The honeybee Network and Society for search and Initiatives for Sustainable Technologies and Institutions (SRISTI) have been scouting innovations by farmers, artisans, women, and so on at the grassroots level. The Honey Bee database of 10,000 innovations, collected and documented by SRISTI, would be a part of the National Register of Innovations, is to be managed and support by NIF.The primary objectives of NIF are to ? ? ? Help India become an innovative and original society and a global leader in sustainable technologies by scouting, spawning and sustaining grassroots innovations. Ensure evolution and diffusion of green grassroots innovation in a selective, time-bound and mission oriented basis so as to meet the socio-economic and environmental needs of society. Provide institutional support in scouting, spawning, sustaining and scaling up grassroots green innovations as well as outstanding traditional knowledge and helping their transition to self accompaniment activities. Page 6 ROLE OF GOVERNMENT IN ENCOURAGING INNOVATION ?Build linkages between excellence in formal scientific systems and promiscuous knowledge systems and create a knowledge network to link confused stakeholders through application of information technology and other means etc. To meet its objectives in scouting, awarding and incubation of grassroot innovations, NIF has set up five-spot dedicated departments to execute innovation to enterprise development models? ? ? ? ? Scouting and software documentation Business Development and Micro Venture Value Addition and Research and Development Intellectual Property Manage ment Dissemination and Information Technology Management TECHNOLOGY PROMOTION, DEVELOPMENT AND UTILIZATION (TDPU)Aimed at promoting technology development and industrial research in the country as well as encouraging its utilization by various sections of economy, be it industry, academic, scientific institution and the society at large. The programmes and activities under this scheme are centered around promoting industrial R&D development and commercialization of technologies acquisition, management and exportation of technologies promotion of consultancy capabilities etc. Under TDPU Programme, there is one rattling important programme component called Technology Development and Innovation Programme (TDIP), which aims to develop technologies and promote innovation in the country. TDIP is sub-divided into 2 programmes, namely- Technology Development and Demonstration Pr ogram (TDDP) It was earlier known as Programme Aimed at Technological Self-reliance (PATSER).It is a plan schem e of Department of Scientific and Industrial Research (DSIR) to promote industrys efforts in development and demonstration of indigenous technologies, development of capital goods and absorption of merchandise technologies. That is, its broad objectives for achieving self-sufficiency in industrial growth are? ? Supporting industry for technology absorption, development and demonstration. Building indigenous capabilities for development and commercialisation of coetaneous products and process of high impact. ? Involvement of national research organisations in sound out projects with industry. ? Technology evaluation in selected sectors. To achieve such objectives, DSIR provides on a selective basis partial financial support to research, development, design nd engineering (RDDE) projects proposed by industry in the following areas ? Development and Demonstration of new or improved product and process technologies including those for specialized capital goods, for both domestic and export markets. ? Absorption and up gradation of imported technology. Page 7 ROLE OF GOVERNMENT IN ENCOURAGING INNOVATION The partial financial support by DSIR is primarily meant for covering expenditure involved in prototype development and pilot plant work, sieve and evaluation of products flowing from such R&D, user trials, etc. Bulks of be of the project are from the industrys resources. Technopreneur Promotion Programme (TePP)It was launched to work the vast innovative potential of the citizen of India. TePP is a mechanism to promote various(prenominal) innovators to become technology-based entrepreneurs (Technopreneurs). Thus, its main objectives are to? ? ? Promote and support untapped creativeness of individual innovators. instigate the individual innovators to become technology based entrepreneurs. Assist the technopreneur in networking and forge linkages with other constituents of the innovation chain for commercialization of their developments. The activities under TePP include providing financial support to selected and screened individual innovators having original ideas for converting them into working models, prototypes and so on.TePP assistance is provided to the innovator to meet expenditure on the following ? ? ? ? ? ? ? ? R&D/Engineering consultancy Procure small equipment, tools etc. required new(a) Material/ Accessories (for prototype/process trials), Fabrication cost (for prototypes) Patent steerage and support Manpower Testing & Trials any other relevant costs TePP support to the innovators is limited to 90% of the total cost of the project and be 10% is to be borne by the innovator/inventor. INNOVATION OF SCIENCE PURSUIT FOR animise RESEARCH (INSPIRE) It is another such innovative programs proposed by the Department of Science and Technology for attraction of talent to science.The basic objective of INSPIRE would be to communicate to the youth population of the country the excitements of creative chase of science and attract talent to the study of science at an earliest stage and build the required critical human resource kitty-cat for strengthening and expanding the Science & Technology system and R&D base. INSPIRE Scheme has included three components. They are (i) Scheme for Early attractive force of Talents for Science (SEATS) (ii) Scholarship for Higher Education (SHE) and (iii) Assured Opportunity for Research Careers (AORC). Page 8 ROLE OF GOVERNMENT IN ENCOURAGING INNOVATION CONCLUSION There is a large pool of technically-trained personnel in India, but its density of Research Scientists and Engineers (RSEs) is one of the lowest. However, there is no range of this issue as a problem in policy circles.The country has very few research grants specifically for the enterprise sector. Even those that it has are largely utilised by public sector enterprises. The technological fundament of the country is fairly sophisticated (at least by Developing region standards). The network of laboratories und er the umbrella of the CSIR forms an important component of this technological infrastructure. The interaction of these labs with the enterprise sector, despite efforts to enhance it, is still very low. Part of the hindrance arises from the low demand for innovations from the enterprise sector. Tax incentives are not very popular because of their