Sub-national innovation networks in India- an emerging scenario

A.S.Rao, Adviser,

Government Of India, Department of Scientific and Industrial Research,

asrao@nic.in

Regional Consultative Meeting on SIS 18-20 January 2006

Seoul

GOVERNMENT POLICY TOOLS

Public enterprises Scientific and Technical institutes Education Information networksFinancial Legal and regulatory Procurement

Indian SME sector

limit (one million Indian Rupees ) on investment made on plant and machinery.

number over 3 million

contributes almost 40% of the gross industrial value

largest employment opportunities for the Indian populace, next only to Agriculture.

contributing 45%-50% of the Indian Exports.

            

 

Fig 1: SME triangle

Emphasis on Market

reservation of products for exclusive manufacture in the small scale sector A total of 812 items were reserved Units (1987-88) accounted for:-

11.3% of the items produced in the SSI sector.

28.3% of the production in SSI sector.

36% of the working SSI units for which data was compiled in the Census

Impact of globalisation

India has agreed to make adjustments in tariff rates to the level of “bound rates” for more than 3300 commodities. 66 per cent items of Indian small-scale industry are bound, which is higher than all India level.

Competitiveness

remained mostly tiny, technologically backward and lacking in competitive strength. survived due to product and geographical market segmentation and policy protection. hampered the growth of important sectors like light engineering and food processing.  It has also stunted the exports of toys, textiles and leather: small enterprises are simply unable to supply large volumes of high-quality goods in time.

Resurgence

Thriving entrepreneurship.

Supportive govt policies

            

 

Fig 1: SME triangle

Emphasis on “Technology” and “Venture Capital”

Credit linked capital subsidy scheme for the technology upgradation of the small scale industries [CLCSS]Quality Upgradation/Environment management for small scale sector through incentive for ISO 9000 /ISO 14001 Certifications Small Industry Cluster Development Programme Technopreneur program (TePP)

Video on TePP innovators ( 30 mts)

Fig 2:TePP Innovation Funnel 

1st Level Screening 

917 792

TePP Screening Committee 

123 57

Successfully Completed 

Appropriation & Scale-up limitation 

Commercialization of Innovation 

Diffusion by Imitation 

Creativity Phase 

Innovation Phase 

Diffusion Phase 

5000IDEAS  

    

   

                    

Capabilities in transition

Capabilities based on regulations

capabilities based on geographic positioning

Capabilities based on assets

Capabilities based on personal

Capabilities based on relationships

Sub-national innovation networks - two emerging scenarios

Collective innovation system for clusters Individual innovators support system

Collective Innovative system for clusters

Collective invention, also called informal know-how trading, technology trading, information exchange, is a significant element of technological collaboration Since the exchanged and generated knowledge consists of small advances with potentially large cumulative effects, both the costs and risks to member firms are less than through independent pursuit or formal collaboration.

illustartions

Kolaphuri chappal About 1200 families engaged in the

production of ethnic footwear under the generic name Kolhapuri. Due to lack of standardization and poor quality, the product was loosing market. CLRI developed 120 new designs and technology packages for quality assurance and product standardization. The improved product has gained export markets in Italy, Japan, Spain, USA.

Bankura handicrafts

NISTADS ( National Institute of Science, Technology and Development Studies, has set up a S&T field station at Bankura, west Bengal to upgrade technologies for artisans and craftsmen by blending the traditional with new technologies. A software package called MADHU (Modernisation of Artistic Design for Handloom Unit) was developed in collaboration with IIT, Kharagpur. This CAD software package facilitates computerized digitization of the pictures/ design produced by the artist/ designer. This package has been successfully demonstrated to designers and weavers of Banura. As a result a large number of craftsmen have adopted blending of this new technology to increase efficiency, quality, flexibility and cost effectiveness.

Individual innovators support system

Innovation flows out of creativity

Stifling creativity – cannot be invented here syndrome

Need to create right climate for creativity to flower in abundance.

Networkclimate

innovation

Social standing ofCreative peoplecreativity

Value system

Fig 3: creativity loop

conclusion

Networking is Knowledge

Networks are often more than relationships that govern diffusion of innovation and norms.

Networks contribute capabilities that augment the value of firm.