Creativity and Innovations as the Key Differentiator for Future Growth
MICRO, SMALL AND MEDIUM ENTERPRISE
NEXT GENERATION ENGINE OF GROWTH
A TWELFTH PLAN PERSPECTIVE
TRACK: CREATIVITY AND INOVATION AS THE KEY DIFFERENTIATOR FOR FUTURE GROWTH OF MSME SECTOR.
AUTHOR: Prof. GULBASH DUGGAL, (Academic Head)
ORGANISATION: INTERNATIONAL COLLEGE OF FASHION
ADDRESS: M-39, LAJPAT NAGAR- 2 NEW DELHI – 110024
MOBILE: 9811111303, 9711440003
EMAIL: gulbash@hotmail.com , gulbashduggal@icf.edu.in
ABSTRACT
Many MSMEs in India face challenges such as sub-optimal scale of operation, technological obsolescence, lack of work space, supply chain inefficiencies, increasing domestic and global competition, fund shortages, change in manufacturing strategies and turbulent and uncertain market scenario. Therefore, there is an urgent need for enabling a conducive policy environment which would help enhance competitiveness of Indian MSMEs. This research study aims to debate on the effectiveness of existing schemes and suggest innovative policies from the learning of the best practices being followed globally that could be adopted in the policy framework of 12th Five Year Plan for the development of MSMEs.
Josef Schumpeter pointed out in the early 20th century that innovation rates increase more than proportionally with firm size and market concentration; he thus established that large firms were the engines of innovation in capitalist economies. But things have changed over the last decades. Small companies have proved to be as innovative and efficient as their larger counterparts. Nonetheless, innovation ability still tends to vary with firm size.
Innovation has traditionally been regarded as the development and introduction of new production technologies. However, innovation is rather the innate entrepreneurial drive that impels some individuals to upgrade their business.
There are more than 8 million SMEs in India today – small companies that churn out electronic parts, garments, etc. – making
NEXT GENERATION ENGINE OF GROWTH
A TWELFTH PLAN PERSPECTIVE
TRACK: CREATIVITY AND INOVATION AS THE KEY DIFFERENTIATOR FOR FUTURE GROWTH OF MSME SECTOR.
AUTHOR: Prof. GULBASH DUGGAL, (Academic Head)
ORGANISATION: INTERNATIONAL COLLEGE OF FASHION
ADDRESS: M-39, LAJPAT NAGAR- 2 NEW DELHI – 110024
MOBILE: 9811111303, 9711440003
EMAIL: gulbash@hotmail.com , gulbashduggal@icf.edu.in
ABSTRACT
Many MSMEs in India face challenges such as sub-optimal scale of operation, technological obsolescence, lack of work space, supply chain inefficiencies, increasing domestic and global competition, fund shortages, change in manufacturing strategies and turbulent and uncertain market scenario. Therefore, there is an urgent need for enabling a conducive policy environment which would help enhance competitiveness of Indian MSMEs. This research study aims to debate on the effectiveness of existing schemes and suggest innovative policies from the learning of the best practices being followed globally that could be adopted in the policy framework of 12th Five Year Plan for the development of MSMEs.
Josef Schumpeter pointed out in the early 20th century that innovation rates increase more than proportionally with firm size and market concentration; he thus established that large firms were the engines of innovation in capitalist economies. But things have changed over the last decades. Small companies have proved to be as innovative and efficient as their larger counterparts. Nonetheless, innovation ability still tends to vary with firm size.
Innovation has traditionally been regarded as the development and introduction of new production technologies. However, innovation is rather the innate entrepreneurial drive that impels some individuals to upgrade their business.
There are more than 8 million SMEs in India today – small companies that churn out electronic parts, garments, etc. – making
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