Tuesday, May 13, 2008
Knowledge Network for Incubating Innovations into Enterprises2
been mistakes. For instance, he said that one of the issues that came up was at what stage
should an entrepreneur be involved. It was felt that maybe if the entrepreneur is involved
from the initial stages, there would be a greater sense of ownership and urgency with
relation to the process of innovation development. The need for appreciating the struggles
undergone by the innovators and their consequent high expectations coupled with the
difficulties in converting their innovations into enterprises – these were some of the
lessons that have been learnt over the years.
He said that as had been suggested by Prof Pankaj Chandra, an Innovation Forum can be
established and CIIE could facilitate that process.
Prof Gupta said that he was optimistic about the future of innovation-based enterprises
and quoted the example that GIANs have licensed 14 technologies none of which are
patented. This shows that there are entrepreneurs who respect Intellectual property Rights
(IPRs) and who are willing to invest in technologies that could be easily copied.
Several grassroots innovators presented their innovations. This included Bhanjibhai
Mathukia (check dam with multiple semicircular arches – a design modification that has
never been attempted before, Vanraj tractor), Arvindbhai Patel (auto compression
sprayer, auto air kick pump- he has made 11 innovations), Ashok Dhiman (tea making
machine), Paresh Panchal (motorized charki for kites- he has received 15,000 orders in
Ahmedabad itself) and Yusuf Khan (Ground nut digging machine and threshing machinehe
has sold more than 20 units of each).
In the discussion during the presentations, various issues emerged. For instance, it was
mentioned that Bhanjibhai did not want a patent for the check dam. He wanted it to be an
open source technology. It was suggested that he should get a trademark registration for
Vanraj tractor. When asked if any market study had been done for the tea-making
machine, it was mentioned that a detailed discussion with representatives from industry,
academia and other experts resulted in suggestions, which were incorporated in the
product development process. Presentations regarding some other innovators including
Kanak Das (bicycle with rider induced and terrain induced forces for transmission) and
Mohammad Saidullah (amphibious cycle-runs on land as well as water) Remya Jose
(washing machine cum exercising machine developed by a Class X student), Sukhranjan
Mistry (tile making machine which makes low cost tiles) and Dhanjibhai Kerai (a
physically challenged person who has made modifications in a scooter which he can now
drive himself) were made.
Prof Pankaj Chandra highlighted some innovative models of co-operation from Japan
(TAMA model) and Italy (Third Italy) as part of his presentation on organizing small
producers for technological innovations. He also spoke about the engineering cluster in
Rajkot that collaborates on orders, processing and manpower.
He enumerated some of the challenges faced by small entrepreneurs. These included
identifying areas of innovations that have market value, dilemma of matching innovators
and customers, locating producers who will provide process/product support, seed
funding for innovations, R&D orientation and managing regulatory environment.
In the discussion that followed, it was suggested that universities could play an important
role in building clusters. Another worrying issue that was pointed out was that the
prevalent systems in India don’t sustain excellence be it in the industry or the academia.
Post lunch, presentations by innovators continued. The innovators who made
presentations included Amrutbhai Agrawat (innovative pulleys – there had been no
change in the design for the past 2000 years, Aaruni tilting bullock cart), Mansukhbhai
Patel (cotton stripper – has a US patent, latest model does the work of 1200 people in one
day), Bharat Srirang Kamble (motor protection device- offers complete protection from
motor burn outs and has fault specific indicators), Yagnesh Mehta (air curtain blower -
more cost effective and energy saving compared to existing aluminium blowers) and
Mansukhbhai Jagani (Bullet driven Santi - a motorcycle driven plough). Presentations
regarding some other innovators including Manoharan (dual purpose rotary huller -
hulling different items in small quantities simultaneously), Trilokya and Champak Bora
(technique to transmit music through electric circuits – can be used to hear music
simultaneously in all the rooms) were made.
Prakash Parkhi, a small entrepreneur who has been providing logistics and support to
Bharat Srirang Kamble, also spoke. It was highlighted that it had become difficult to
license Kamble’s technology as he was insisting on recovering his costs from a single
licensing agreement. It was pointed out that he could not expect the entire sum from one
deal and should opt for a number of non exclusive licenses. One suggestion was that the
Coimbatore Chamber of Commerce could be approached for commercialization.
The issue of existing standards impeding development of innovations was discussed. It
was mentioned that the Vanraj tractor did not get certified because the vehicle did not
conform to the enforced standards.
There were certain queries related to patents. Prof Gupta said that the renewal of patent
(by The Honey Bee Network) is based on the licensing enquiries generated on that
product within a period of three to four years. However, there are some exceptions. It was
also pointed out that maintaining patents is expensive.
One of the participants wanted to know whether innovations were copied. Prof Gupta
pointed out that artisan communities have their own ethics and that blatant copying rarely
happened. It was more common in the field of plant varieties and farm practices.
It was suggested that an innovators association could be formed and they could help each
other. Some efforts have been made in this direction.
Subsequently, the participants divided themselves into four discussion groups based on
their interest areas:
Group 1 – Blending informal and formal science
Group 2 – Valorising grassroots/ mass impact innovations
Group 3 – Managing Microventure Fund: Principles and Procedure
Group 4 – Taking innovations to market
The groups made presentations the following day.
September 25, 2004
The first group (Blending informal and formal science) focused on the following points:
1. Innovation-Inventor Support Mechanism
2. Knowledge – Skill - Resources
3. Link Agencies
4. Indigenous Technical Knowledge
5. Certification Agency
6. IPR Issues
7. Policy Issues of Formal Sector
8. Joint venture – Contractual Research
The suggestions regarding issuing of public notice two months prior to Research Council
Meetings inviting innovations from the informal sector, translating articles in technical
journals into regional languages, the need for the intermediaries to understand the
language of grassroots people as well as technical experts, minimizing test fees and
frequent revision of standards were found to be quite pertinent.
It was also added that the university systems should be flexible enough to allow faculty
members to contribute to work on informal science.
In the discussion that followed, various relevant issues like the need for sectoral group
discussions between formal and informal science at the regional level, making state
research councils proactive, using EDUSAT for talk back sessions on innovations,
building a network of incubators and listing scientists of various institutes and their
interest areas were raised. Regarding students taking up innovations as practical projects,
it was pointed out that they would probably prefer working on something that would
further their careers. It was felt that even the faculty might not be very keen on research
on grassroots innovations.
There were two speakers on the second topic( Valorising grassroots/ mass impact
innovations). The points mentioned by the first speaker were: identification of institutes
that can assist in value addition, categories of value addition, diversification of the use of
the innovation, participation of entrepreneurs in value addition and venture capital
support for value addition.
The second speaker mentioned that there was some confusion regarding the definition of
the grassroots innovator- whether it is an individual innovator without formal technical
knowledge and support? The group felt that value addition could be done in four ways –
rigorous evaluation, prototype development, customer feedback and raising capabilities
(increasing knowledge base and skills). Emphasis was placed on the need for market
pressure to enable effective functioning of product development centers and clusters.
Some of the points that were raised in the discussion were the need for incentives for
research experts and scientists to work on grassroots innovations, providing grassroots
innovators exposure to formal sector institutes and labs and also allowing scientists to
pursue ideas in this field. At this point, attention was drawn to the recent circular issued
by the Ministry of Human Resources Development stating that the IITs should focus only
on high tech products and not low-tech innovations.
An idea given by Yagnesh Mehta, one of the innovators, regarding building a portable
refrigerator for the army triggered several responses, the outcome of which was the
suggestion that a technology network focusing on alternative materials and alternate
sources of energy should be made.
A participant talking about the Chinese experience with innovation said that students
were actively involved with incubators and often wrote business plans, did market studies
etc. In this context, it was mentioned that NIF has set up SCAI clubs in 23 institutions.
SCAI organizes a competition for business plans on grassroots innovations.
The third group (Financing Grassroots Innovations –Managing Microventure Funds)
focused on the following points:
1. Nature of financial requirements vary
2. In a competitive environment, response time is crucial
3. Government support schemes are useful but have constraints
4. Microventure Innovation Fund status
5. Mentoring and monitoring costs are high compared to the kind of funding
6. Issues of scaling up and sustainability
The group’s recommendations included creating a network of angel investors, setting up
self help groups of innovators in an area, greater dissemination of information regarding
government and NIF support schemes.
The group ended their presentation with certain broader issues that need to be considered.
These were:
1. Is microventure fund a commercial or a developmental activity?
2. Will these remain government or NGO supported efforts?
3. Can GIAN be objective in assessing commercial potential?
4. Should commercialization of innovations be the objective or
motivation/diffusion?
5. How to avoid fund becoming “easy money”?
6. Have we contributed to raising the innovators’ expectations?
The ensuing discussion threw up some suggestions, which included CIIE building a
mentoring network, decentralization of government support mechanisms, involving
commercial banks that have money reserved for social services as well as using their
extensive network and the idea of a group of innovators starting an enterprise together.
One of the participants associated with Automotive Components Manufacturers
Association (ACMA) said that the association could be given information that can be
disseminated to their members.
Venture financing was suggested as the best option for investments in innovations. But it
was pointed out that the current trend in venture financing is looking at investing at a
later stage in the innovation development cycle.
The need to be flexible in formulating and negotiating license agreements was stressed.
The fourth group (Taking innovations to the market) highlighted the following points:
1. Classification of innovation
2. IPR Protection
3. Market readiness
4. Market strategy
5. Publicity and advertising
6. Media coverage
7. Government support – incentives and measures
8. Support to enterprise for working capital
9. User ministries/organizational support where required
10. Support interface market establishment/ mechanism co-ordinated by CIIE or NIF
as a society or a company under Section 25.
Knowledge Network for Incubating Innovations into Enterprises3
roadshow and celebrating an innovation week or day. The need for tax incentives for
user industries was stressed.
It was suggested that it was important to lobby with the big players and that
associations should be roped in. Certain participants offered to take the responsibility
for building linkages with various associations.
Mr Rawat – Automobile Manufacturing Association of India
Mr Yagnesh Mehta – Air Conditioners Engineers Association
Dr Gayatri Sabarwal – Association of Biotech Enterprises
Dr A Mukhopadhyay – Institute of Engineers
Dr Sharad Shah - Individual networking with medical fraternity
Mr Devendra Jain – Plastic related association
Dr A K Srivastava – Post harvest and farm tools related association
Dr Bhatnagar – Association of Physics teachers, Materials Science Society
Anil Passary offered to do regional networking in Chattisgarh and Orissa.
A suggestion was made for starting a company called 4MI- Make Money out of
Mighty Minds of India where all stakeholders will have a share and innovators will
have equity.
A participant pointed out that there should be clarity between technologies for
licensing and products for retailing and the possibility of developing catalogues for
retailing purposes and technology transfers.
The other issues that emerged included difficulty in getting grassroots innovators
access to facilities like tool rooms a number of which remained underutilized, using
regional newspapers and hiring stalls in major exhibitions for disseminating
information.
Subsequently, Chintan Bakshi and Vijaya Vittala of GIAN (West) and GIAN (North
East) respectively presented on “Incubating Innovations into Enterprises- Experiences of
GIAN”.
Responding to a query in the difference of approach between GIAN and a private
investor in the development of a tractor, the presenter pointed out that the private investor
had a huge personal stake and could focus on a single project. GIAN, on the other hand,
with a lean team has to handle 10-15 projects at a time. Another suggestion was that since
demand patterns for tractors had changed in the past few years, a new need assessment
exercise was probably required.
One way of overcoming staff constraint would be a team comprising mainly of
volunteers to augment GIAN’s efforts. A suggestion which came up in this regard was
involving students from technical institutions, especially in their last term, where they
could possibly have more time and could also continue their involvement once their
course is over. Such an engagement would give them a greater sense of ownership.
GIAN’s experience has also shown that entrepreneurs may also not take a product to the
market. An entrepreneur had taken the license for a technology, but did not launch the
product commercially. He had invested in the innovation out of a sense of social
commitment and had not really looked at the technology as a source of revenue.
GIANs could use the facilities available at Entrepreneurship Development Cell which are
being funded by the Department of Science and Technology.
Lt Colonel A D Sadana in his presentation on “Experiences of Indian Armed
Forces/Engineering Wing”, spoke about the strengths of the army and the specialized
environment to which army innovations have to cater such as meeting real time demands,
exacting quality standards and no incubation. He presented information about some of the
innovations including low cost simulator for the use of a radar, GPS holder and
Intelligent DC Adapter. He listed some other areas where the army requires innovative
products. These were:
Solar power supply
Embedded systems
Keypad manufacturers
Aeromodelling
Enclosures/cabinets fabricators
FRP, ABS structures
RF amplifiers
RF antennas
This was followed by presentations. The presenters included Dr K Natarajan (normal
cure composite type seal for cable joint – indigenous product used in BSNL sites in south
India), Prof S P Bhatnagar, Department of Physics, Bhavnagar Univerity (Stepper motor
damper and centrifugal switch - unique magnetic fluid), Dr A Mukhopadhyay, Tata Steel
(online property predictions system –OPPRESS- for rolled steel coils ), Dr V M
Mayande, Principal Scientist, Central Research Institute DA (developed and
commercialized 12 innovations related to mechanization of dryland agriculture), Dr
Nawab Singh, (small scale feed pelleting machines, spent goat meat products), Satish
Deb (treadle printing), Dr V N Pratape, CFTRI (mini dhal mill, versatile dhal mill –
licensed 17 licenses for mini dhal mills and 9 for versatile dhal mill), Dr G S Sodhi,
faculty in Delhi University (fingerprinting technology focusing on calcium component in
sweat), Dr Venkateswarlu, Central Research Institute for Dryland Agriculture(yellow dye
from kusum and use of sweet sorghum for ethanol. Other applications of the innovations
were discussed.
The issue of a patent revealing more than it hides was raised. In fact, this had prompted
the department of physics, Bhavnagar University to take a cautious approach towards
filing patents. The lack of manpower including decreasing number of research students
was mentioned.
Tata Steel has a different approach to patenting wherein it files patents and believes in
letting the competition “chase them, if they can”.
An interesting concept which came up in the CRIDA presentation was that of farm
machinery custom hiring center in which location specific needs are identified, the
equipment is bought by entrepreneurs and then hired out to farmers.
The CFTRI representative attributed their success in negotiating so many licenses to an
emphasis on continued R& D as well as demonstration, training and feedback.
Elaborating on the status of fingerprinting technology usage in India, the presenter
mentioned that only 3% of the cases are solved by application of forensic science and the
rest by third degree methods. With human rights organizations acquiring greater
influence, he drew attention to the frightening possibilities when criminal justice system
would have to depend solely on forensic science given our present lack of expertise in
this field.
Another innovation that was discussed was an injection vial rubber cap for taps which
reduces flow rate of water by 70-75%.
Post dinner, the participants met again for presentations. The presenters included
Lakshman Prasad (currency note fastener, EVM enclosure), Rama Anand (making
furniture from used and discarded tyres- has patents in 117 countries), Devendra Jain
(wood plastics composite – environment friendly and durable), Dr.Satish Verma, Central
Sericultural Research and Training Institute, (silkworm feed substitute, silkworm bed
disinfectant and other innovations – most of the technologies have been commercialized),
Dr Srinivas Rao , Project Directorate of Biological control, ICAR(protocols for mass
scale production of natural enemies for key crop pests), Deepankar (unique welding
machine – focus on energy efficient devices), Jasbir S.Ryait (industrialist) and R
Sudhakar, Central Tobacco Research Institute (banana fibre separator – enables
conversion of waste banana plant portions into fibre which has multiple uses).
An interesting aspect which came out during Lakshman Prasad’s presentation was his
desire to promote innovation, particularly among the youth. He has published seven
books on innovations and is also involved in bringing out a quarterly. Unfortunately,
though using the currency note fastener can result in saving Rs 600 crore per annum, he
has not been able to convince the RBI about the merits of his innovation.
Rama Anand sees that her innovations have a social impact by contributing part of her
income for the welfare of the handicapped. An interesting issue which came up from the
experience of Devendra Jain was – “The cost of being first is extremely high, especially
in business.”
The experience of CSRTI is am example of how a central institute has been able to
commercialize its innovations and earn considerable revenue on them.
A lively discussion took place regarding the safety and efficiency of the welding
machine. Deepankar said that a significant part of his work is focused on developing
devices to solve rural problems. He has also been involved in incubating enterprises
initiated by students.
Jasbir S.Ryait, industrialist, mentioned how he had supported a grassroots innovator who
had developed a truck that could run on six wheels when it is empty and 10 wheels when
full.
The banana fibre separator has high social utility value. Families now have an additional
source of income that could prove to be invaluable, particularly during natural calamities
when the entire crop gets destroyed. They would still be able to use/sell the stem,
peduncle and leaf stalks and earn money.
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