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India has embarked on a
journey towards creating
an enabling environment
by putting in place an
ecosystem that breeds
innovation. The Government
of India has launched several
significant initiatives for
propelling innovation, such
as the Start-up India initiative,
Accelerating Growth of New
India’s Innovations (AGNIi),
Atal Tinkering Labs, new intellectual property rights (IPR) policy,
Smart City Mission, Uchchatar Avishkaar Yojana, etc. All these
initiatives, coupled with phenomenal research and innovation from
the institutions, industry, and society, are cementing India’s position
as an innovation and knowledge hub. However, the financial
dimension plays a critical role in fructifying these innovation efforts.
Various fiscal incentives are offered by the Government of India’s
Department of Scientific and Industrial Research (DSIR) for R&D
activities performed by institutions, academia, and industry for
supporting, nurturing, and leading their innovations towards fruition.
Technology Development Board (TDB), an important stakeholder
in the Indian innovation ecosystem, provides soft loans and
promotes the equity of Indian industry through the development
and commercialization of indigenous technology and by adapting
imported technology for domestic applications. Biotechnology
Industry Research Assistance Council (BIRAC) supports high-risk,
early starters from academia, start-ups, or incubators that have
exciting ideas in the nascent or planning stage. In India, there has
been phenomenal growth of the private and foreign-owned private
equity/venture capital (PE/VC) industry. The government has also
played an important role in establishing and nurturing the industry
segment by various fiscal concessions.
Financial institutions such as the Industrial Development Bank of
India (IDBI) and the Small Industries Development Bank of India
(SIDBI) lend support for innovation and commercialization of
innovative technologies, in addition to entrepreneurship. SIDBI
manages the India Innovation Fund—a registered venture capital
fund that invests in innovation-led, early-stage Indian firms.
Despite the availability of several instruments, many brilliant ideas
from entrepreneurs—especially at the grassroots level—do not
come to fruition due to their inability to access the appropriate
level of funding. Therefore, it is imperative that all potential ideas,
even from the remotest corners of the world, have the opportunity
to be harnessed and fostered. This era of globalization calls for
developing a robust technology screening and funding mechanism
through which the top 5000 ideas across the globe could be
selected and nurtured from concept to commercialization. In
addition, there is an ardent need for a large-scale government
grant for supporting high-risk innovations with strong business
potential.
This year’s Global Innovation Index (GII) report provides valuable
insight into country innovation models and each country’s position
on various innovation indicators. The Global Innovation Index has
been instrumental to India in shaping its policies and designing an
actionable agenda for innovation excellence. Last year, it was both
a privilege and honor for the Confederation of Indian Industry (CII)
to host, for the first time, the historic global launch of the Global
Innovation Index in collaboration with the Department for Promotion
of Industry and Internal Trade, the Government of India, and the
World Intellectual Property Organization. The worldwide launch
of the GII in India was a significant milestone for the country and a
phenomenal recognition of our standing in innovation.
The coronavirus disease (COVID-19) pandemic has caused
widespread disruption by adversely impacting global businesses
and economies. As the world adjusts to its new normal, business
leaders need to harness the most innovative technologies to help
drive resilience and emerge from the crisis stronger. Governments
across the world are in overdrive, designing fiscal incentives by
slashing interest rates, tweaking taxes, and offering a moratorium
on credit periods. The Government of India is also busy devising
incentives for start-ups, entrepreneurs, and other high-risk
businesses to help ease the impact of the coronavirus outbreak. All
such initiatives will go a long way in assuaging the disruption of the
Indian innovation ecosystem.
The GII report could be India’s one-stop reference to plan and
accelerate our journey toward the future we imagine for our
people. I encourage you to refer to this report, discuss it with
others, and consider the ways we can improve as individual nations
and as a global community.
FOREWORD
FINANCING INNOVATION IN INDIA
Chandrajit Banerjee
Director General
Confederation of Indian Industry (CII) |