Innovation and Entrepreneurship Program November 12, 2009

www.infodev.orgThe World Bank | 1818 H Street NW | Washington, DC 20433

infoDevHarnessing Innovation and Entrepreneurship for Development

infoDev’s goals:

• infoDev’s Innovation and Entrepreneurship Program aims to build local capacity in the private sector of developing countries to foster innovative enterprise creation and growth, particularly at the SME level.

• infoDev focuses in particular on the acceleration and scale-up of innovative early stage technology companies – such as ICTs and Climate Technologies, as well as on the utilization of ICT to increase enterprise competitiveness.

Building Local Entrepreneurial

Capacity &

Catalyzing Innovative Solutions

Providing Training,

Toolkits and Advisory Services

Pioneering Experienced-

based Research

Facilitating Communities

of practice

A grassroots community of SMEs and Entrepreneurs

287 incubators in over 80 developing countries 8900+ small enterprises creating 104,000 new jobs

The Poor; 134Youth; 123

No. of incubators that target youth, the poor, and women

Enabling Innovation & Entrepreneurship Across Sectors…

Information & Communication Technologies: 129

Agriculture: 57

Mixed: 82

Manufacturing: 63

Creating Opportunities for Human Empowerment…

6 regional networks of business incubators in Africa, Asia, Eastern Europe, Latin America and the Middle East, Caribbean

Women; 79

infoDev Global Forum on Innovation and Technology Entrepreneurship, October 2009, Brazil

The event attracted over 1000 participants from over 70

countries, including technology entrepreneurs, business

incubator managers, venture capitalists, policymakers and

development partners.

Key outcomes:

• An SME Internationalization Scheme launched

• Seed funding and early-stage financing for start-ups – An A2F Initiative for Technology Entrepreneurs

• Regional and Thematic Working Groups

infoDevHarnessing Innovation and Entrepreneurship for Development

2009 - Launch of a new Climate Technology Program in partnership with DFID

• Can technology innovation centers and incubators facilitate innovation , entrepreneurship and the growth of local climate technology sectors in developing countries?

Climate Technology Program sweet spot

infoDev’s track record in

cleantech commercialization

• Fuel-efficient bread-oven (Rwanda)

• Wind turbines for off-gridcommunities (Mexico)

• Solar panels (Armenia)• Potable UV water treatment

(Ecuador)• Residential & industrial

composting (Chile)• Solar mosquito destroyer

(India)• Inverters for solar panels

(Nigeria)• Clean paper pulp (Philippines)

InfoDev:

Tech. Business Incubation

and SME

development

Clean

Technology

Sector

One of many Gaps to SuccessfulCleantech Commercialization: Access to Finance

• Cleantech startups require:

– Longer time to market

– Longer time to scale

– More pre-launch investments

– More post-launch and scale investments

• Looks more like this

CLIMATE TECHNOLOGY PROGRAM

The program’s unique positioning:

Innovation centers: Aggregators, incubators and facilitators of innovative entrepreneurial activity - can this work in cleantech? How should they be

customized to local developing country contexts?

Imagining Incubating Market EntryGrowth and

Sustainability

Pre-market products and services Market-ready products and services

Bottom up: infoDev’s unique approach to climate change and technology innovation

Top down: Existing initiatives in climate change and technology innovation

Adoption and

Diffusion

Demonstrating

CLIMATE TECHNOLOGY PROGRAM

• Climate Technology Program Goals: Engage local stakeholders to understand how innovation centers can:

• Further develop climate technology innovation capacity at the grassroots

• Enable accelerated transfer and commercialization of technologies for mitigation and adaptation of climate change

• Foster entrepreneurs and promising SMEs in the space for economic and social development

In-country pilot study process:

The CLIMATE TECHNOLOGY PROGRAMCLIMATE TECHNOLOGY PROGRAM

What could an innovation center look like?

Innovation Center

Coordination of R&D

Tech demonstration

facilities

Business incubation

services

Tech transfer and open

source platforms

Skill building and training

tools

Performance certification

Policy advocacy

Seed funding

• Based on local context including national and regional needs, challenges and opportunities

• Prioritizes and aggregates existing and future activities

• Leverages public-private support, partnership and resources

• Strong focus on capacity building, social collaboration and governance

• Networked nationally and internationally facilitating cross-border collaboration

• Entire product life-cycle management for successful deployment to scale

• Long-term sustainability

PROGRESS SO FAR

Pilot countries:

• India: Underway

• Brazil: Initial discussions with local partners

• Kenya: Launching in November

Analytical Report with UNIDO:

The role and effectiveness of technology innovation centers, including a toolkit to help developing countries use these centers within their current development contexts.

PROGRESS SO FAR

Progress so far: India

• First stakeholder workshop October 20, 2009

• Over 50 stakeholders from a variety of backgrounds/sectors met to brainstorm needs, challenges and opportunities in scaling up clean technology innovation in India

• Next workshop: January 2010 - Propose solutions for the design and implementation of a potential Climate Technology Innovation Center/s

• UN High Level Conference on CC Tech Development and Transfer in Delhi: P.M. Manmohan Singh expressed India’s strong commitment to Climate Innovation Centers http://pmindia.nic.in/speech/content.asp?id=832

PROGRESS SO FAR

Progress so far: India Workshop Outcomes

• Overwhelming need to leverage and aggregate current and planned local initiatives in the space – much ongoing R&D is duplicative and needs prioritization

• Experienced mentors , seasoned entrepreneurs and sector “heroes” needed

• Successful hand-off of technology to entrepreneur to market lacking

• Many technologists and entrepreneurs have key (solution) with no lock (market) –Financers won’t fund technologies without a market.

• Two very distinct markets: Rural and urban markets need different technologies, business models, financing options and policy interventions.

What’s Next

infoDev is seeking support from other donors and partners to initiate activities in countries such as:

Region Country

South Asia Pakistan, Sri Lanka, Nepal

East Asia and Pacific China, Indonesia, Vietnam, Cambodia, Papua New Guinea

Europe and Central Asia Turkey, Russia, Ukraine, Kazakhstan

Middle East North Africa Morocco, Tunisia, Egypt, Jordan

Latin America and Caribbean Mexico, Peru, Ecuador, Chile

Sub-Saharan Africa South Africa, Rwanda, Ghana, Ethiopia, Zimbabwe, Nigeria

The CLIMATE TECHNOLOGY PROGRAMinfoDev’s CLIMATE TECHNOLOGY PROGRAM

More information available at www.infoDev.org/climate

www.infoDev.org/idiscwww.infoDev.org/GIC

How to participate: Funding opportunities

Please contact project leads for further information and opportunities for supporting the Climate Technology Program.

Seth Ayers – infoDev sayers@worldbank.org

Anthony Lambkin – infoDev alambkin@worldbank.org

Activities Commitment

Phase 1: Pilot Consultant (locally based)

o Sector mapping, SWOT analysis, climate technology innovation activity inventory, interviews, travel

Stakeholder engagement workshops (2-3 events)o Venue & Meeting facilities, key-note speakers

Recommendationso Implications for further action, plan for implementation

USD 250,000 per pilot study

Phase 2: Implementation Program implementation Capacity building

Phase 2 funding requirements based on phase 1 recommendations