6th December 12 Bangalore

T RamasamiSecretary

Department of Science and Technology,

Government of India

Leveraging Knowledge Enterprise: A Reflection

Open Thinking of a Learner from the First Principles

Knowledge : An Intangible AssetEnterprise : Risks investment for profitLeveraging : Using lever for work

•Could an intangible asset be risked as a lever for social value or wealth creation?

•Having reflected over this issue for some time, A Reflection of one man is presented here as an open thinking but not as a view or lessons learnt. (This is not a view of the Government)

Leveraging Knowledge In National prosperity is to connect

knowledge seekers with value creation

Scholarship driven

Competition driven

Innovation

ScienceTechnology

Market driven

Creation of jobs Creation of knowledge

Creation of value

Advanced knowledge

Leadership in usable knowledge

Gainful and useful knowledge

National prosperity

Knowledge Seekers

Innovation is like Money in ATM

Like a Promissory NoteLike an Open Cheque

Knowledge: In its various Dimensions

Advancing the Frontier of knowledge of human kind• Investment is made with no pre-defined returns

Usable knowledge with a dimension of practical application value• Investments are made with expectations of returns

Useful knowledge with a value proposition to the ultimate user• Investments are made with calculations of returns

Gainful knowledge attains the character of a resource for an enterprise• Investments are made with expectations of value

premium

Balancing Manifestations of Science in Social Contexts

Discovery priority of Knowledge Seekers

Solution priority of States and Enterprises

High Solution Low Discovery

Low Solution Low Discovery

High Solution High Discovery

Low Solution High Discovery

Challenge is to motivate scientists to discover solutions with a potential social or economic value

Enterprises focus on high yielding solutions

6th December 12 Bangalore

Knowledge Economy Paradigm

Science, Research and Innovation is emerging new power equationResearch converts money into knowledge; Innovation converts knowledge into value and or wealth

Major World Economies invest into R&I as a tool in Nation

Building

Gross Expenditure on Research and Development (GERD) is a parameter for computing Human Development IndexInvestment into R&D as a percentage of GDP is a norm for assessment of development indices of nationNumber of Full Time Equivalent professionals per million population is a parameter for global innovation competitivenessShare of technology led-growth of GDP is an indexValue addition to raw materials through technologies is a measure of national competitiveness in global knowledge economies

Anatomy of Indian Knowledge Enterprise in Science sector

R&D in NGO groups

R&D by MNCs

Industrial R&D systems Mission mode

Non strategic R&DBodiesCSIR

Academic/Sector

Focused on education

GovernmentFunding

& developmental agencies

Mission modeStrategic Agencies

DAE,DOS,DRDO

Indian STI system

Socio economic Ministries as users

of S&T outputs

Some what thinly spread but rooted in all dimensions of STI system

Education InfrastructureWide and developed

Research InfrastructureDeveloped and merits widening

Industrial InfrastructureNeeds backing of innovation infrastructure

Technology Infrastructure

Status of mind to market Chain in Indian knowledge infrastructure

Innovation Infrastructure

Knowledge

Finance

Backing untested knowledge with finance is risking capital.

Innovation infrastructure calls for risk financing of knowledge

Investing into Innovations: India’s lessons

Inherent creativity and Capacity to Innovate

Innovation as side productof personal passions largely

Supported by pubic funds

Innovation infrastructureThrough planned and Strategic interventions

Public-Private Partnerships

Innovation for global competition forHigh growth economies with largeSocial security system and high

per capita nationsPrivate sector driven and public

sector facilitation

Integrated infrastructure for people Centric innovation landscape to

Include the excluded through technoSocial innovations that serve the Needs of 4 billion global citizens

Passion driven pursuit Purpose driven pursuit

Competition driven pursuitPeople centric pursuit

India: In current knowledge Economy

In the flat world, Indian industrial research system does not enjoy either level playing field or the necessary cultural pre-disposition. The tools of yesterday are not adequate to meet the challenge of tomorrow.How to leverage Indian Knowledge Enterprise for global competitiveness?

Issues 1. Weakly-coupled Knowledge enterprise

(academy-research-industry) 2. Designing an Innovation system

(in risk averse social order)3. Unleashing Indian Innovation

(Challenges of Culture, Asymmetry and Pluralism)

Weakly Coupled Systems Knowledge-Enterprise

Relationships

Partnerships among academic and public funded research and private sector-led manufacturing have been weak. Engagement of the private sector in R&D in India has not kept pace with the needs of the time. Translational research and funding systems for early stage innovations are inadequate.In an economy where trade is global and technology is mobile, industrial research is demand and market driven. Supply side technocratic push of public funded research is faced with the realities of market forces. Academic and public funded research systems and private sector-led manufacturing need to be better linked.

Industrial Research Paradigm of India

The structures for industrial research by Indian industries are still emerging.

Public funded research bodies have created high volume jobs for industrial research. High value employment for such experts is feasible only when the Indian private sector engages more aggressively in industrial research.

It is estimated that private sector investment into R&D is currently at about 0.33% of the GDP. Industrial research in the Indian private sector will have to be promoted aggressively. Concerns expressed that the industrial research carried out in the private sector in the country is also benefiting other countries on account of mergers and company sell-out. Focus needed on strengthening industrial research in the private sector through various measures.

Taking Stock of Reality

Several sociological factors play a part in influencing the level of in-house industrial research undertaken in the Indian enterprises. The public sector investments into R&D in industrial research may remain higher than those in the private sector. In the long term interest of the country, taking into account the ground realty, India may have to consider some special models for the participation of private sector in public funded industrial research without even the necessity of financial investments in public funded R&D.

Case for stronger Public-Private Partnerships in

Industrial Research

With increases in support of private sector to public funded research systems, the coupling within the industrial research community is likely to become stronger. For largely public funded industrial research also, public-private partnership in selection of technology targets will be important. “Usability of knowledge” criterion will gain high importance. • The industrial partner is likely to be able to be better

prepared for assessing ‘a priori’ technologies to be developed for their usability under real field conditions.

• A non-financial partnership arrangement of public funded institution with private sector user of the research products

Policy GuidelinesIndustrial research systems in the private sector should be developed soonIn the intervening times, special policy guidelines for investing public funds into public-private partnerships in industrial research leading to public and social goods may need to be considered. A country specific model needed for fostering partnerships among public funded industrial research institutions and the private sector Asymmetry between investors and inventors is caused by the absence of social capital

Partnerships needed in Mind to Market Chain

Viable and durable partnerships needed among the various stake holders within the domain of mind to market.Expertise needed for research, risk-reduction, revalidation, resource supply and resource utilization is varying. It may not be easy to domicile all these expertise in any one organization. Knowledge Enterprise is a multi body system which needs an innovation ambiance

PQR of innovation funnel: Challenge of Scaling

Academic Sector

Risky and creative ideas, rock bed of disruptive innovations

Research Sector

Quality addition to ideas and innovations through risk reduction

Industry Sector

Profit generation through leveraging innovations

ideas

Workable ideas

Working ideas

Profiting ideas

Scaling Innovation is about conversion of risky ideas into innovations through “death valley”

Of 100 ideas one is workable

Of 100 workable ideas, one works.

Of 100 working ideas, one profits

Internal Linkages within Knowledge Enterprise: Need of

the Time

R&D

ENTITy

STI landscape

Aca

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Res

earc

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stryMar

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(So

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ey)

Fin

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(H

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Mo

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)

Social capital

Interconnecting National Innovation SystemNational Innovation Foundation Experience

•Grass root innovators create affordable and social innovations; 160000 practices registered.A large untapped potential exists

•Due diligence on marketing potentials and new mechanisms for leveraging grass root innovations may well be the next step forward Education levels

Innovation potential

Conditioning of mind set

Creative mindset space

6th December 12 Bangalore

Incubating Enterprises within Academic system

Some lead examples

DST SUPPORTED INCUBATOR NORK

Incubator and Science and Technology Park Network

1 IKP, Hyderabad2 ICRISAT, Hyderabad3 University of Hyderabad 4 University of Delhi5 Sriram Inst. TBI, Delhi 6 IAN-TBI, Delhi7 NID-NDBI, Ahmedabad 8 Nirma Labs, Ahmedabad9 CIIE, IIM Ahmedabad 10 MICA, Ahmedabad11 NSIC, Rajkot 12 NDRI, Karnal 13 MDI, Gurgaon14 BITS, Meshra15 Composites Tech. Park, Bangalore 16 E health-TBI, Bangalore17 MIT, Manipal 18 JSS STEP, Mysore19 NIT, Surathkal20 BEC-STEP, Bagalkot21 NIT, Calicut 22 Technopark- TBI, Trivandrum 23 Amrita TBI, Kollam24 IIT-SINE, Mumbai25 MITCON, Pune26 NCL-VC, Pune 27 D.K.T.E. Textile Engg, Kolhapur 28 STP, Pune

29 MANIT, Bhopal30 KIIT University, Bhubaneshwar31 Thapar University, Patiala32 GNEC-STEP, Ludhiana33 BITS, Pilani34 KEC, Perundurai35 VIT -TBI, Vellore 36 Anna University - TBI, Chennai37 University of Madras, Chennai 38 IIT-RTBI, Chennai 39 BAIT, Sathyamangalam40 Periyar - TBI, Thanjavur41 SPEC-TBI, Chennai42 TREC-STEP, Tiruchirapalli 43 PSG-STEP, Coimbatore44 PSG-Nanotech TBI, Coimbatore45 TNAU, Coimbatore46 Vel Tech, Chennai47 JSSATE - TBI, NOIDA48 Amity - TBI, NOIDA49 KIET, Ghaziabad50 IIT, Kanpur51 IT-BHU, Varanasi52 HBTI, Kanpur53 IIT, Roorkee 54 Ekta-TBI, Kolkata55 IIT, Kharagpur

Ceeyes Metal Reclamalation Pvt. Ltd: A global company Led by S. Ananthakrishnan, alumni TREC, Trichy, incubated by TREC-STEP ANTS Ceramics

Limited is an advanced materials manufacturing company started by graduates and faculty at IIT Kharagpur.

Robokit developed by TRI Technosolutions Pvt Ltd , a SINE company promoted by IIT Bombay alumnus

Embedded Horns for cycles and Remote Light Controllers (RLC), Kongu engg. Coimbatore

Commercial products from TBIs supported by DST

Science and Technology Entrepreneurship Parks (STEPs) and Technology Business Incubators (TBIs)

DST has supported the formation and nurtured 64 STEPs/ TBIs so far in India

•They has spun off about 2600 companies which have created about 26,000 jobs

•The turn over of these companies is estimated @ 7,000 crores

•They have served to connect academic and research systems to business incubationThere remains an open opportunity to nourish the Technology

Business Incubation systems in academic sector

The Power of Ideas is an entrepreneurial platform created by The Power of Ideas is an entrepreneurial platform created by The Economic Times in association with the Department of The Economic Times in association with the Department of Science and Technology to seek, reward, nurture and groom Science and Technology to seek, reward, nurture and groom business ideas by connecting them with relevant evaluators, business ideas by connecting them with relevant evaluators, mentors and investors ......mentors and investors ......

Call for “Power of Ideas” received 16000 plus proposals; they were short-listed to 250 plus, connected venture capitalists, ~15 companies formed

                                          

      

/wEPDwU

Some key products from TDB support

Biocon

AV Alloys

Eicher motors

REWA

SARAS

Increasing the Coupling among Academy, Research and

Enterprises

In a risk averse society, various policy and other promotional measures may be required for building partnerships along the entire chain of mind to market. Current models which expect the public funded industrial research bodies to deliver the final product for public and social good directly may need revisit. A bold and out-of box model for cementing technology partnerships to support to an innovation ecosystem may well be the way forward• Integration of Science, Research, Innovation System

and symbiosis of knowledge and wealth or value creation seem the next best steps

• Increasing the coupling among Academy Research and Enterprises is a choice-less need

Creating Social Capital (Trust) for Relationship

model

Research for public and social good may require special mechanisms. May be it will be necessary to generate a special fund for supporting research for public and social good in private sector through some developmental cess or other mechanisms. Easier provisions may be required for deployment of public funds into Public-Private partnerships for research for public or social goodAdequate safeguards and transparent systems of governance for such PPPs are in order. A policy framework which accords high priority to relevant solution science is a need of the hour. This is without prejudice to excellence in research for global leadership

Relationship Models: For Leveraging Knowledge

EnterpriseInnovations are required in the country for developing new models for industrial research. There are some global models. Right Sizing the industrial research systems and formation of research teams based on network models are some key elements of necessary changes. Governance models adopted in most of the research establishments of the country, whether they are supported by with public or private sector funds may require a revisit. Relationship model is a critical need. Synergies and partnerships are essential elements of a rightly positioned knowledge enterprise.Leveraging Knowledge enterprise for value creation calls for Trust, Risk, Application, Venture capital, Enterprise and Leadership focus

(PIE)2 in Innovation Ecosystem: Trust, Risk, Application, Venture, Enterprise, Leadership

Policy People

Institutions

Investment climate

Entrepreneurship

Ecosystem

Risk management

Application focus

Trust based models Enterprise Mindset

Venture capitalLeadership in Demand Management

Summary

Reflecting on thoughts on a weakly coupled knowledge enterprise, some possible ideas for increasing the coupling among academy, research and enterprises is to•Integrate Science, Research and Innovation

system•Position a relationship model in mind to

market chain•Pave a new path (Trust, Risk, Application,

Venture, Enterprise and Leadership)•Establish a PPP fund for investment for

Research for social and public good•Leverage India’s USP on affordable innovation

through interconnects and strategic alliances

A Reflection: Leveraging Knowledge Enterprise for

India’s Prosperity

There is now an opportunity to reassert ourselves among the comity of Nations by designing a research system which “includes the excluded” and “reach the un-reached” through innovating for affordable innovations. Social and public good would call for new models of collaboration between the public and private sector. While fostering such collaborations, the needs and benefits to the ultimate user of industrial research products namely people of India should become the focus. The partnership needs to be built on the strength of mutual trust and respect, where individual egos exit and the public and social cause prevail. This civilization called India is too good to remain a mere observer in the realm of global development.