Adviser to the Prime Minister on Public Information Infrastructure and Innovations

1. INDIA DECADE OF INNOVATIONS2010-2020 ROADMAP June 2011 Adviser to the Prime Minister on Public Information Infrastructure and Innovations

2. Innovation • Involves thinking differently, creatively and insightfully • Enables solutions/ inventions that have an impact on social and economic value • Fulfills unmet needs, not met by conventional products/processes/ institutional forms • Moving beyond R&D to mean new applications of old technologies, new processes & structures, organisational creativity & more…

3. Innovation • Products • Services • Processes • Organization • Governance • Social sector • Urban/Rural • Public • National • International • Private Sector/ NGO • Individual • Institution • Big/ Small Innovations redefine everything

4. Innovations • People, Culture, Diversity, Ecosystem & Opportunities drive Innovations • Innovations are required to develop new Products, Services, Markets, reduce Costs, improve Efficiency, Productivity, Performance, Quality, etc • Innovations are the key to Growth, Prosperity & Problem solving world over • Innovations are the key to Inclusive Growth/Society • Everything we do today is essentially obsolete • At times we have 19 c Mindset,20 c Processes & 21st c needs

5. Innovation Pillars

6. Web adds new dimension • Web/Internet offers unprecedented opportunities Related to openness, accessibility, networking connectivity, democratization, decentralization • Power of 1 billion connected people vs. 1 billion unconnected people • Wireless adds Mobility & Flexibility • Web provides Video presence & Virtual reality • Search engines, OSP, OCW, Vlabs, etc. are new tools to train & engage the young

7. Last 50 Years of Innovations • In the last 50 years Innovations have played a significant role in improving: Health, Education, Transport, Communication, Infrastructure, Energy, Governance, Wealth.. • At the same time there are serious global challenges related to: Poverty, Hunger, Environment, Violence, War, Security, etc.

8. The US Innovations • In the last 50 years several major scalable innovations originated in the US: Transistor, Laser, Fiber optics, Micro Processor, Windows, DNA, Genetics… • US provided the ecosystem to breed ideas: • Large talent pool, Young diverse talent, • Risk capital, Government Funding, Autonomy, Markets, • Flexibility, Rule of law, IP framework etc. • Silicon Valley - the source of Inspiration, Ideas & Innovations

9. Innovations for the Rich • Most breakthrough innovations have roots in defense • Best brains in the world are busy solving problems of the rich who do not have problems to solve • As a result complex problems of the poor do not get the right talent • It is time to change this • It is also an opportunity for creating an “Indian / Inclusive model of Development”

10. Innovations in India • Indian diversity has been a fertile ground for Innovations • India has a Long & Rich History & Heritage: • Invention of Zero and Decimal system, • Home to one of the three ancient civilisations (Indus Valley Civilisation) • Place of origin of Hinduism, Buddhism and Jainism • Pioneering Universities like Nalanda and Takshshila, • Architectural and Engineering Marvels such the Iron Pillar in Delhi • Temples, Taj Mahal, Qutab Minar, works such as Arthshastra, Rigveda, Upanishads • Traditional Knowledge Systems in Medicine, Mathematics, Astronomy, Dance, Music, etc…

11. Innovations in India • After independence in 1947 Indian innovations have facilitated Agriculture Revolution, Milk Revolution, Telecom growth, ICT Export, Space exploration, Atomic Energy, Defense, Pharma, Biotech, Economic liberalization,etc. • Indian Government has invested a great deal in building institutions & Infrastructures to facilitate innovations. • Simultaneously appropriate policies & programmes have been introduced to help foster innovations • TELECOM, TM,ECO LIBERALIZATION,NKC,NKN,NInC

12. Current Efforts • Many players on Multiple fronts: • National Innovation Foundation • Honey Bee Network • Society for Research and Initiatives for Sustainable Technologies and Institutions (SRISTI) • Council for Scientific & Industrial Research • Tata Institute of Fundamental Research • Education Institutions like IISc, IITs, IIMs, etc • Technology and Business Incubators • New Millennium Indian Technology Leadership Initiative • Department of Science and Technology (DST) and more ….

13. Current Efforts • Techno Entrepreneurs Promotion Program • Technology Development Board (TDB) • Home Grown Technology Program (HGT) • AYUSH: Ayurveda Yoga Naturopathy Unani Siddha and Homeopathy • GIAN: Grassroots Innovation Augmentation Network • FRLHT: Foundation for Revitalization of Local Health Traditions • TERI: The Energy and Research Institute • CII,FICCI, AIMA and others And many more at national & state levels in Government & private sector

14. Some Opportunities • Organizational flexibility • Increased collaborations • Patent protection • Young talent pool • Diaspora talent pool • Traditional knowledge based Products & Services • Low cost robust Broadband ICT infrastructure • Grassroots/low cost innovations • Inclusive/BOP/Scalable innovations • Global markets

15. ICT • ICT has been a major success story for India • India leads the world in the Out sourcing business • IT-BPO industry revenue is around US $ 70 billion/Yr • India has around 750 million phones now & is adding10 -15 m more /month • India has only10 m broadband connections & needs 100 million • The next ICT benefits will come from Broadband and democratization of Information, applications & public delivery systems

16. Inclusive Innovation: The Indian Model • Innovation paradigm to focus on inclusive innovation for/of & by the people at the BoP • Focus on ‘frugal innovation’ that produces products and services that are affordable by more people at low levels of income, without compromising quality • Need innovation processes that are ‘frugal’ in terms of the resources required & have a ‘frugal’ impact on the earth’s resources • Refrigrater, Medicine, Shampoo, Car, Housing, Education, etc

17. From ‘Jugaad’ to Frugal Engineering • Existing culture of improvisational innovation or ‘jugaad’ driven by scarce resources & customers’ needs • Informal improvisation needs to be scaled up to a system based on frugal engineering geared towards Indian needs • Would drive disruptive innovations in sectors such as health, education, housing etc. to meet the needs of many. For example the $2000 Tata Nano or the $2000 open-heart surgery at Narayana Hrudayalaya

18. Innovation Strategy

19. Strategy • Provide broader PLATFORM for Innovations everywhere to include: • Products • Services • Organizations & Institutions • Processes • Research and Development • Science & Technology • Governance • Social and Cultural • Mindset • National/ State/ Sectoral Councils

20. Strategy • Encourage Innovations for INCLUSION aimed at the Bottom Of the Pyramid: • Awareness • Access • Affordability • Availability • Scalability • Sustainability • Quality • Pervasive Growth • Innovations for/by the people • Innovations for the BOP

21. Strategy • Foster necessary ECO SYSTEM • Incentives & Awards • Innovation clusters at universities • Innovative business clusters • Innovation in MSMEs • Organizational Autonomy & Flexibility • Policies & Programmes • New Institutions • Risk/ Venture Capital • IPR/ Patents • Web & ICT as tools

22. Strategy • Focus on DRIVERS • Multidisciplinary • Collaborative • Disruptive • Generational Change vs. Incremental Change • Durable vs. Disposable • Need vs. Demand • Nature as Nurture • Locally Relevant • Globally Connected and Competitive • Focus at the Edge

23. Strategy • Expand Space for Discourse on Innovation in the country by: • Discussions • Debates • Seminars • Conferences • Best Practices • Subversive Dialogue • Irreverent Dialogue • New Ideas • Media • Innovation Portal

24. Strategy: Impact • The five-pronged focus will foster innovations by: • Democratizing Information • Identifying and empowering domain experts at National, State & District levels • Ensuring institutional autonomy, freedom, flexibility, accountability and transparency • Increasing community and public participation at all levels • Improving Governance & Planning

25. Demography - 550 million below 25 years - Health, Nutrition - Education, Jobs Disparity - Rich & Poor - Urban & rural - Educated & Uneducated Development - Expedite the process & create new methods & new models

26. Multiple demands • Female literacy • Infant mortality • Water & Sanitation • Food & Nutrition • Health for all • Education for all • Alternate energy • Droughts & Floods • Security & Safety

27. Multiple demands • Scientific Temper • Implementation • Improved services • Better Governance • District level Development • Maintenance • Dignity of Labor • Process Re-engineering… • And More…..

28. Role of Technology Technology as a tool for problem solving Technology an entry point to increase-----

29. Role of Government • Government can: • Drive innovation through education policy and skill development • Improve governance and re-engineer public service delivery by innovating within its own structures • Create a roadmap for Inclusive Innovation • Facilitate connections between universities, manufacturers, users and regulators • Drive high quality research, basic research & Business Innovations • Bring appropriate Defense research to consumer market • Promote Innovative Policies & Places • Provide appropriate infrastructures • Facilitate exchange of innovations between public and private sectors • Initiate Nation wide innovation movement

30. Some Innovative Initiatives by Government Need improved processes, coordination, collaboration, communication & implementation

31. New Initiatives • National Knowledge Network • Education • Health • Panchayats • Judiciary • E-Office • Railways • E-Governance • National Advisory Council • Others

32. National Knowledge Network • Government building IP Network with gigabit capabilities to connect 1500 plus nodes across the country for Education and Research to expand, excel & collaborate • All universities will be included in this • First phase of NKN is operational with 2.5 gigabits for 57 institutions, 43 virtual classrooms, 95 crores allocated • In Final phase 550 institutions to be connected by March 2011 • NKN to consolidate multiple networks in the country • NKN to provide new virtual network facilities • NKN to be the backbone for the Education, health, Research and multiple applications for the future

33. Education • Expansion, Excellence, Equity & Access - $ 70 B • Higher Education Council for Regulatory Reforms • National Mission on Vocational Education • More IITs, IIMs, Colleges, Schools & investments • 16 New National Universities & Multidisciplinary Ed • 14 New Innovation Universities • More students in Maths ,Science &PhD • Distance learning & Technology in Education • Open course ware , Corse wise credit, New models • Private & Foreign partnerships • Budget – 25% HE,40% SE ,VE.....

34. Panchayats • Connect 250,000 Panchayats to National Broadband Infrastructure • Create Information Infrastructure at Panchayat level for capacity building, productivity, efficiency, transparency, training, social audit, etc • Improve processes and procedures to reflect local needs & decentralization

35. E-Legal • Use ICT to reduce time to justice from 15 years to 3 • Create National Arrears Grid/ database • Identify & solve current lags & bottlenecks • Reengineer legal/ Judiciary processes • Define new policies and procedures • Focus on Human Resource development • Develop Infrastructure to enhance efficiency • Leverage ICT technology & tools

36. G-Office • Under the aegis of the Department of IT, the National Informatics Centre has designed a e-office software to replace paper files in the Government of India with a virtual filing system. • For smooth transition the software has been created with a user friendly design interface • This innovative system will create paperless government, efficiency and transparency in the system • The project is currently at the pilot stage in certain Government departments

37. E-Governance • Enhance Access & Quality of Public services • Reduce Transaction time & cost • Increase Transparency • Reengineer Government processes • Standardize Platforms for service delivery • Use Web to scale, secure & minimize data centers • Link UID to public services • Implement e-office for paperless files & documentation • Empower all citizens

38. UK Innovations • Central organization to coordinate innovation strategy • HigherEducation Innovation Fund for knowledge transfer from HE to business and public sector • National Skills Academy in crucial sectors of the economy • Regional Development Agencies (RDAs) to deliver tailored business support products at a regional level • UK Government’s Venture Capital Fund of 150 million pounds ($246 million) to kick start British technology investment and the ailing business sector • The Public Service Innovation Laboratory -NESTA to form the centre of an open and collaborative approach to develop the radical innovations that will transform public services

39. Lessons from UK • Strategy driven by the Department of Innovation, Universities and Skills (DIUS) • Other strategic organisations driving innovation and coordinating government effort • Technology Strategy Board (TSB) • Regional Development Agencies (RDA) • Devolved Administrations (DAs) • UK Intellectual Property Office (UK-IPO) • Energy Technologies Institute (ETI) • National Endowment for Science, Technology and the Arts (NESTA)

40. US Innovations • Bayh Dole Act 1980 allowed universities to patent innovations that grew out of government-funded basic research • Small Business Innovation Development Act in 1982—established the rule for federal agencies to commit 2.5 percent of their extramural research budgets to the Small Business Innovation Research program • Defense Advanced Research Projects Agency (DARPA) is tasked with maintaining U.S. technological superiority, and has a history of creating new industries in information technology and advanced manufacturing • Three key science agencies coordinate S&T and innovation: the National Science Foundation, the Department of Energy's Office of Science, and the National Institutes of Standards and Technology • New Innovation Strategy underlined in the American Recovery and Reinvestment Act (ARRA) • In the Recovery Act the President has committed over $100 billion to support groundbreaking innovation with investments in energy, basic research, education and training, infrastructure, advanced vehicle technology, innovative programs, health IT and health research, high speed rail, smart grid, and information technology .

41. Lessons from US • Patent Reform and Legal Framework • R&D Funding: Government aims to invest 18.3 billion in research funding, the largest annual increase in research and development in America’s history • Education and Skills: • Investment of $200 billion over the next decade for scholarships and tax credits to help students complete college • Using the $4 billion Race to the Top in America’s Schools fund to encourage states to put STEM at the center of their reform efforts • Proposed investment of up to $500 million over the next 10 years to create world-class online courses available at community colleges • Creation of Regional innovation Clusters • White House Office of Social Innovation and Civic Participation to grow the marketplace for community innovations • First Social Innovation Fund to identify results-oriented non-profit programs and provide the capital needed to replicate their success in communities • The Recovery Act provides over $19 billion in investments to modernize health information technology • Support for SMEs & Defense innovations

42. China Innovations • China’s National Medium- and Long-Term Science and Development Plan (MLP) 2006-2020 aims to make it an innovation nation and create a National Innovation System • The Plan aims to raise the ratio of R&D to GDP to 2% by 2010 and to 2.5% or more by 2020 • The plan calls for China’s overall reliance on foreign technology to “decline below 30 percent” from an estimated 60 percent in 2006. • The MLP also directs that the number of patents and leading academic papers from Chinese nationals will rank among the top five in the world by 2020 • Innovation Drivers: Ministry of Science and Technology, Ministry of Education, State Council and NDRC (National Development and Reform Commission) departments, National Natural Science Foundation of China (NSFC), Chinese Academy of Sciences • Key Players: • Government Research Institutes • Higher Education • Business Sector

43. Lessons from China • R&D spending has increased at a stunning annual rate of almost 19% since 1995 and reached USD 30 billion in 2005, the sixth largest worldwide • Government funding for government research institutes and the higher education sector to support basic and applied research has driven innovation • Role of Higher Education sector in establishing academia-industry linkages • Role of Business sector as largest R&D performer in terms of inputs, outputs and patent applications • Government to focus on building up innovation capability and creating more IPR on the basis of extensive utilization of resources worldwide • Technological support and tax incentives to small and medium-sized enterprises (SMEs) • Move towards Indigenous Innovation • Technology Markets to facilitate Industry-Science relationship. These are physical entities set up to facilitate technology transactions between sellers and buyers of technology and technological services

44. China Indigenous Innovation • MLP defined indigenous innovation as ‘enhancing original innovation through co-innovation and re-innovation based on the assimilation of imported technologies’ • Focus on replacing foreign technology in such “core infrastructure” as banking and telecommunications systems. That means products like integrated circuits, operating software, switches and routers, database management and encryption systems. • Patent rules now make it easier for domestic retaliation by Chinese companies which face overseas Intellectual Property Rights (IPR) lawsuits from foreign competitors; incentivise filing of patents by Chinese companies • Product testing and approval regimes are geared to delay the introduction of foreign imports into China, and to study foreign designs and production processes before the products cross the border • A refocus on state-industry monopolies and controlled competition privileges accompanied the enactment of an anti-monopoly law that aims to protect domestic companies • Preferential Government procurement policies and industrial and technology standards serve to promote products designed and produced in China

45. China Indigenous Innovation • MLP detailed preferences for domestic goods and service providers. • A September 2006 tax bureau “Circular on Preferential Tax Policies for Innovation Enterprises” offered two year exemption of enterprise income tax. • The December 2006 “Administrative Measures on the Accreditation of National Indigenous Innovation Products” outlined the plans for creating national indigenous innovation product catalogues • The May 2007 “Measures for Administration of Government Procurement Budgets for Indigenous Innovation Products” warned government at all levels to develop specific indigenous innovation procurement plans or they would lose procurement funds. • In May 2007, “Measures for Assessment of Government Procurement of Indigenous Innovation Products” lowered government procurement supplier qualification standards for companies doing indigenous innovation.

46. China Indigenous Innovation • In December 2007, MOF issued “Measures for the Administration of Government Procurement of Imported Products” which directed that approval by a board of experts is necessary for government entities to purchase imported goods. It called for favouring foreign suppliers that provide the domestic industry with technology transfers and training services. • A January 2008 “Enterprise Income Tax Law” offered a preferential rate of 15 percent to high-tech enterprises designated by the government as indigenous innovation companies because they developed and owned their intellectual property. • On November 15, 2009 with the release of the public draft of the “Circular on Carrying Out the Work on Accreditation of National Indigenous Innovation Products,” known as Circular 618, MOST, the NDRC and MOF issued the joint circular announcing the creation of a new national-level catalogue of products that will receive preferential treatment in government procurement.

47. Lessons from Israel • Eco-system for innovation created through government policies, private initiative & start up culture • Government push for developing the domestic venture capital industry through schemes such as Yozma • High level of investment in R&D • Room for failure

48. Other countries

49. Global Lessons – US,China,EU,Brz,..... • In 2003, the world’s largest companies spent $70.6 billion in R&D outside their home countries, up from $33.9 billion in 1995 • Around 2.5 million students were studying outside their home country in 2004, up from 1.75 million in 1999 • Global Exchanges develop “Absorptive capacities” which help places channel global flows into their local economies and become even more connected to the global economy in return • New hotspots of innovation being created beyond the US and Europe: Sao Paolo in Brazil, Shanghai in China and Bangalore in India • Global research and faculty linkages: UK-India Science and Innovation Council; UK-India Education and Research Initiative (UKIERI), US-India Business Council, proposed US-India Education Council • Global Research and Innovation Forum for coordination • Global Grassroots Innovation Platforms

50. National Innovation Council International Collaborations State/ Sectoral Innovation Councils India Innovation Portal Outreach Action Plan Eco System Multiple Roadmaps US $1 Billion Inclusive Innovation Fund Collaboration, Training & Support 20 University Innovation Centers 20 InnovationClusters