T Ramasami Secretary Department of Science and Technology, Government of India

1. Leveraging Knowledge Enterprise: A Reflection T Ramasami Secretary Department of Science and Technology, Government of India Bangalore

2. 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)

3. Leveraging KnowledgeIn National prosperity is to connect knowledge seekers with value creation Innovation is like Money in ATM Innovation Leadership in usable knowledge Competition driven Knowledge Seekers Creation of jobs Creation of knowledge Scholarship driven National prosperity Market driven Gainful and useful knowledge Advanced knowledge Science Technology Creation of value Like an Open Cheque Like a Promissory Note

4. 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

5. Balancing Manifestations of Science in Social Contexts Enterprises focus on high yielding solutions Solution priority of States and Enterprises High Solution Low Discovery High Solution High Discovery Discovery priority of Knowledge Seekers Challenge is to motivate scientists to discover solutions with a potential social or economic value Low Solution High Discovery Low Solution Low Discovery

6. 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 Bangalore

7. 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

8. Anatomy of Indian Knowledge Enterprise in Science sector Some what thinly spread but rooted in all dimensions of STI system

9. Status of mind to market Chain in Indian knowledge infrastructure Education Infrastructure Wide and developed Knowledge Backing untested knowledge with finance is risking capital. Innovation infrastructure calls for risk financing of knowledge Finance Research Infrastructure Developed and merits widening Innovation Infrastructure Technology Infrastructure Industrial Infrastructure Needs backing of innovation infrastructure

10. 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

11. 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 • Weakly-coupled Knowledge enterprise (academy-research-industry) • Designing an Innovation system (in risk averse social order) • Unleashing Indian Innovation (Challenges of Culture, Asymmetry and Pluralism)

12. 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.

13. 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.

14. 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.

15. 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

16. 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

17. 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

18. PQRof innovation funnel: Challenge of Scaling 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 Profiting ideas Industry Sector Profit generation through leveraging innovations Working ideas Research Sector Quality addition to ideas and innovations through risk reduction Workable ideas Academic Sector Risky and creative ideas, rock bed of disruptive innovations ideas

20. Internal Linkages within Knowledge Enterprise: Need of the Time Market R & D E N T I T y Industry (Soft Money) Financing (Hard Money) Social capital Research Academics STI landscape

21. 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 Interconnecting National Innovation System Innovation potential Creative mindset space Conditioning of mind set Education levels

22. Incubating Enterprises within Academic system Some lead examples Bangalore

23. Incubator and Science and Technology Park Network DST SUPPORTED 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 MANIT, Bhopal 30 KIIT University, Bhubaneshwar 31 Thapar University, Patiala 32 GNEC-STEP, Ludhiana 33 BITS, Pilani 34 KEC, Perundurai 35 VIT -TBI, Vellore 36 Anna University - TBI, Chennai 37 University of Madras, Chennai 38 IIT-RTBI, Chennai 39 BAIT, Sathyamangalam 40 Periyar - TBI, Thanjavur 41 SPEC-TBI, Chennai 42 TREC-STEP, Tiruchirapalli 43 PSG-STEP, Coimbatore 44 PSG-Nanotech TBI, Coimbatore 45 TNAU, Coimbatore 46 Vel Tech, Chennai 47 JSSATE - TBI, NOIDA 48 Amity - TBI, NOIDA 49 KIET, Ghaziabad 50 IIT, Kanpur 51 IT-BHU, Varanasi 52 HBTI, Kanpur 53 IIT, Roorkee 54 Ekta-TBI, Kolkata 55 IIT, Kharagpur

24. 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. 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

25. 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

26. 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

27. Some key products from TDB support Biocon REWA Eicher motors AV Alloys SARAS

28. 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

29. 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

30. 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

31. (PIE)2 in Innovation Ecosystem: Trust, Risk, Application, Venture, Enterprise, Leadership Trust based models Enterprise Mindset Institutions Entrepreneurship Policy People Risk management Application focus Ecosystem Investment climate Venture capital Leadership in Demand Management

32. 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

33. 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.

34. Thank you