Leveraging Knowledge
Enterprise: A Reflection
T Ramasami
Secretary
Department of Science and Technology,
Government of India
6th December 12
Bangalore
Open Thinking of a Learner from the First
Principles
Knowledge
: An Intangible Asset
Enterprise
: Risks investment for profit
Leveraging
: 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
Innovation is like Money in ATM
Innovation
Leadership in usable
knowledge
Competition
driven
Creation of jobs
Knowledge Seekers
National
prosperity
Market driven
Gainful and
useful
Technology
knowledge
Creation of knowledge
Scholarship
driven
Science
Creation of value
Like an Open Cheque
Advanced
knowledge
Like a Promissory Note
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
Solution
priority of
States and
Enterprises
Challenge is to
motivate scientists
to discover
solutions with a
potential social or
economic value
High
Solution
Low
Discovery
Low
Solution
Low
Discovery
High
Solution
High
Discovery
Low
Solution
High
Discovery
Enterprises
focus on
high
yielding
solutions
Discovery
priority of
Knowledge
Seekers
Knowledge Economy
Paradigm
Science, Research and Innovation is
emerging new power equation
Research converts money into
knowledge; Innovation converts
knowledge into value and or wealth
6th December 12
Bangalore
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 Index
Investment into R&D as a percentage of GDP is a norm
for assessment of development indices of nation
Number of Full Time Equivalent professionals per
million population is a parameter for global innovation
competitiveness
Share of technology led-growth of GDP is an index
Value 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
Strategic Agencies
DAE,DOS,
DRDO
Indian STI
system
Mission mode
Non strategic R&D
Bodies
CSIR
Government
Funding
& developmental
agencies
Academic/
Sector
Focused on
education
Socio economic
Ministries as users
of S&T outputs
Some what thinly spread but rooted in all dimensions of STI system
Status of mind to market Chain in Indian
knowledge infrastructure
Backing
untested
knowledge
with finance
is risking
capital.
Innovation
infrastructure
calls for risk
financing of
knowledge
K
n
o
w
l
e
d
g
e
Education Infrastructure
Wide and developed
Research Infrastructure
Developed and merits widening
Innovation Infrastructure
Technology Infrastructure
Industrial Infrastructure
Needs backing of innovation infrastructure
F
i
n
a
n
c
e
Investing into Innovations:
India’s lessons
Inherent creativity and
Capacity to Innovate
Innovation as side product
of personal passions largely
Supported by pubic funds
Innovation infrastructure
Through planned and
Strategic interventions
Public-Private Partnerships
Passion driven pursuit
Purpose driven pursuit
Integrated infrastructure for people
Centric innovation landscape to
Include the excluded through techno
Social innovations that serve the
Needs of 4 billion global citizens
Innovation for global competition for
High growth economies with large
Social security system and high
per capita nations
Private sector driven and public
sector facilitation
People centric pursuit
Competition driven 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, publicprivate 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 Guidelines
Industrial research systems in the private sector
should be developed soon
In 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
Scaling Innovation is about conversion of risky ideas into
innovations through “death valley”
Profiting
ideas
Working
ideas
Industry Sector
Profit generation through leveraging
innovations
Research Sector
Quality addition to ideas and innovations through
risk reduction
Workable
ideas
ideas
Academic Sector
Risky and creative ideas, rock bed of disruptive
innovations
Of 100 ideas
one is
workable
Of 100
workable
ideas, one
works.
Of 100
working
ideas, one
profits
R
&
D
E
N
T
I
T
y
Research
Academics
(Soft Money) Financing (Hard Money)
Market
Industry
Internal Linkages within Knowledge
Enterprise: Need of the Time
Social capital
STI landscape
Interconnecting National Innovation System
National 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
I
n
n
o
v
a
t
i
o
n
p
o
t
e
n
t
i
a
l
Conditioning
of mind set
Creative
mindset
space
Education levels
Incubating Enterprises within Academic
system
Some lead examples
6th December 12
Bangalore
SUPPORTED
Incubator and Science andDST
Technology
Park Network
INCUBATOR NORK
1 IKP, Hyderabad
2 ICRISAT, Hyderabad
3 University of Hyderabad
4 University of Delhi
5 Sriram Inst. TBI, Delhi
6 IAN-TBI, Delhi
7 NID-NDBI, Ahmedabad
8 Nirma Labs, Ahmedabad
9 CIIE, IIM Ahmedabad
10 MICA, Ahmedabad
11 NSIC, Rajkot
12 NDRI, Karnal
13 MDI, Gurgaon
14 BITS, Meshra
15 Composites Tech. Park, Bangalore
16 E health-TBI, Bangalore
17 MIT, Manipal
18 JSS STEP, Mysore
19 NIT, Surathkal
20 BEC-STEP, Bagalkot
21 NIT, Calicut
22 Technopark- TBI, Trivandrum
23 Amrita TBI, Kollam
24 IIT-SINE, Mumbai
25 MITCON, Pune
26 NCL-VC, Pune
27 D.K.T.E. Textile Engg, Kolhapur
28 STP, Pune
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
MANIT, Bhopal
KIIT University, Bhubaneshwar
Thapar University, Patiala
GNEC-STEP, Ludhiana
BITS, Pilani
KEC, Perundurai
VIT -TBI, Vellore
Anna University - TBI, Chennai
University of Madras, Chennai
IIT-RTBI, Chennai
BAIT, Sathyamangalam
Periyar - TBI, Thanjavur
SPEC-TBI, Chennai
TREC-STEP, Tiruchirapalli
PSG-STEP, Coimbatore
PSG-Nanotech TBI, Coimbatore
TNAU, Coimbatore
Vel Tech, Chennai
JSSATE - TBI, NOIDA
Amity - TBI, NOIDA
KIET, Ghaziabad
IIT, Kanpur
IT-BHU, Varanasi
HBTI, Kanpur
IIT, Roorkee
Ekta-TBI, Kolkata
IIT, Kharagpur
Ceeyes Metal Reclamalation Pvt. Ltd:
A global company Led by S. Ananthakrishnan,
alumni TREC, Trichy, incubated by TREC-STEP
Embedded
Horns for
cycles and
Remote Light
Controllers
(RLC), Kongu
engg.
Coimbatore
Robokit
developed by TRI
Technosolutions
Pvt Ltd , a SINE
company
promoted by IIT
Bombay alumnus
Commercial products from
TBIs supported by DST
ANTS Ceramics
Limited is an
advanced materials
manufacturing
company started by
graduates and faculty
at IIT Kharagpur.
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
incubation
There
remains an open opportunity to nourish the Technology
Business Incubation systems in academic sector
/wEPDwU
The Power of Ideas is an entrepreneurial platform
created by The Economic Times in association with
the Department of Science and Technology to seek,
reward, nurture and groom business ideas by
connecting them with relevant evaluators, 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
Some key products from TDB support
Biocon
REWA
Eicher motors
SARAS
AV Alloys
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 good
Adequate 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 Enterprise
Innovations 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
Trust based models
Institutions
Risk
management
Enterprise Mindset
Entrepreneurship
Policy
People
Ecosystem
Investment climate
Leadership in Demand Management
Venture capital
Application
focus
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.