Role of Business Incubation systems for facilitating Technology

Role of Business Incubation systems for facilitating Technology Transfer and Development A. Balachandran Manager www. vittbi. com VIT -Technology Business Incubator VIT University Vellore vittbi@vit. ac. in www. knowledgebiz. org

1. Introduction Technology Transfer issues and impact of ecosystems Business Incubation systems in India and their networks Facilitation by Business Incubation systems for SME Technology Transfer

2. Technology Transfer: Issues and Challenges 2. 1. Strong Industry-Academia Linkage US Example: beneficiaries are inventors, Universities and Industry Bayh-Dole Act: 1980 provided greater momentum Royalty incomes(2004) : New York Univ(1 st) – USD 109 million and California Institute of Technology (20)- USD 9. 86 million National Knowledge commission advocates (in 2007) for a Bayh-Dole like act in India resulting in The Public funded R & D bill in 2007 Will this alone be sufficient? -

2. Technology Transfer: Issues and Challenges 2. 2. Nascent Stage of Patenting Culture Number of patents filed- an indicator of Technology potential 2005 statistics Japan: 3, 50, 000 patents (1 st) USA: 2, 000 patents (2 nd) China: 1, 000 patents (3 rd) India: 20, 000 patents (11 th) Researchers / million of population Scandinavian countries: 7000 USA: 4000 India: 156 2007: China: 2, 45, 000 and India: 35, 000

2. Technology Transfer: Issues and Challenges 2. 3 Lack of Government funding to harness R & D spending in % of GDP India: 0. 8% China: 1. 23% Developed Countries: 3% Israel and Sweden: 4% + Private Sector Spending:

2. Technology Transfer: Issues and Challenges 2. 4. Lack of awareness Widespread Lack of awareness about emerging technologies and derived opportunities SMEs in need of Information on IPR protection, tech. transfer issues SMEs in need of education and training in technology adaptation / Technology provider networks ICT as an enabler in bridging gaps

2. Technology Transfer: Issues and Challenges 2. 5. After effect of globalization Lack of competitiveness / use of run of the mill technologies /inadequacy in quality & packaging requirements/ entry of foreign players in the domestic market 2. 6. Cultural and regional factors First generation entrepreneurs / Self employment • Growth is restricted to the individual’s ability even if there is a potential to become big • Perceived losses due to delegation, lack of skills / trust etc. .

3. Role of Business Incubators 3. 1. Business Incubators NBIA, USA defines Business Incubation in the following manner: “Business incubation is a business support process that accelerates the successful development of start-up and fledgling companies by providing entrepreneurs with an array of targeted resources and services. These services are usually developed or orchestrated by incubator management and offered both in the business incubator and through its network of contacts. A business incubator’s main goal is to produce successful firms that will leave the program financially viable and freestanding. These incubator graduates have the potential to create jobs, revitalize neighborhoods, commercialize new technologies, and strengthen local and national economies. ”

3. Role of Business Incubators 3. 2. Status of Business Incubation in India NSTEDB: STEP / TBI STPI Private initiatives 3. 3. Number of Business Incubation environment in India NSTEDB: 40+ STPI: 40 National Knowledge Commission’s recommendation on Quantity and Quality / PPP models / necessity to move beyond metros and elite institutions

3. Role of Business Incubators 3. 4 Business Incubator Networks Indian Science and Technology Parks and Business Incubators Network (ISBA) Asian Association Business Incubators info. Dev network- VIT-Technology Business Incubator Incubation Asia Pacific Network Project EU-India project to promote Cross Cultural Ventures Healthier fast-food- A Sweden Company- Mic. Vac Electronic Nose by a UK Company - Scensive technologies

4. Some Technology Transfer Facilitation Activities in India 4. 1. Department of Science and Technology NSTEDB / TDB : Seed Fund TDB: Technology Development Fuunding TIFAC 4. 2. DSIR : TDDP / Te. PP Council of Scientific and Industrial Research labs 4. 3. Other initiatives IITs /IISc /APCTT / FICCI-Lockheed Martin / TEDO

5. Suggested framework (enabling Business Incubators as facilitating agencies for Technology Transfer ) 5. 1. Linking SMEs (Industry and Academia) • Majority of the business incubators in India have strong connections with academia • bridging institutions and needy SMEs will happen in a more effective manner 5. 2. Enabling Technology development & IPR support Leveraging incubator networks for enabling SMEs

5. Suggested framework (enabling Business Incubators as facilitating agencies for Technology Transfer ) 5. 3. Facilitating access to funding (for technology development) • 10 Incubators were supported by TDB seed fund grant • 7 Incubators were supported by DST’s incubation fund • Every year 5 incubators will be supported by DST’s seed fund grant • MSME ministry scheme to include 100 incubators in 5 years • Linkage with District Industries centers and Lead Banks • Local, regional and International donor / fund raising opportunities

5. Suggested framework (enabling Business Incubators as facilitating agencies for Technology Transfer ) 5. 4. Increasing the awareness business incubators can also play a vital role News letters, Innovation funding programs, advertisements in the media and also through exhibitions. What is needed is a more dedicated approach targeting SMEs and consistency in the approach. 5. 5. After Effect of Globalization and Cultural & Regional Issues a case to case analysis of individual short comings and appropriate actions to overcome these deficiencies is possible.

6. Conclusions The current core activity of Business Incubators is creation of successful start up ventures. To enable them to undertake this additional responsibility, a nationwide Business Incubator capacity building program is essential. A joint activity by DST and MSME will help business incubators to provide this technology transfer support in addition to their core program. The arrangement shall result in Technology Transfer facilitation cells in the business incubators. After creation of these cells, a nationwide promotion of this new initiative to reach out to SMEs either directly or through their associations has to be carried out.

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