Role of Government in Encouraging Innovation

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ROLE OF GOVERNMENT IN ENCOURAGING INNOVATION

12/4/2011

Strategic Innovation Management

Authored by Nandini Kapur (D326) Kanika Katyal (D325)

ROLE OF GOVERNMENT IN ENCOURAGING INNOVATION

ROLE OF GOVERNMENT IN ENCOURAGING INNOVATION
S T R AT E G I C I N N O VAT I O N M A N A G E M E N T

Contents
EXECUTIVE SUMMARY ........................................................................................................ 2 INTRODUCTION................................................................................................................... 3 SCIENCE AND TECHNOLOGY POLICY ................................................................................. 4 STATE INDUCED INCENTIVES FOR INNOVATION ............................................................... 4 TECHNOLOGY INCUBATION AND DEVELOPMENT OF ENTREPRENEURS ........................... 5 SUPPORT INTERNATIONAL PATENT PROTECTION IN ELECTRONICS & IT (SIP-EIT)……….6 MULTIPLIER GRANTS SCHEME ............................................................................................. 6 NATIONAL INNOVATION FOUNDATION ........................................................................... 6 TECHNOLOGY PROMOTION, DEVELOPMENT AND UTILIZATION (TDPU) .......................... 7 Technology Development and Demonstration Program (TDDP) ...................................................... 7 Technopreneur Promotion Programme (TePP) ..................................................................................... 8 'INNOVATION OF SCIENCE PURSUIT FOR INSPIRE RESEARCH (INSPIRE)' ......................... 8 CONCLUSION ...................................................................................................................... 9

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ROLE OF GOVERNMENT IN ENCOURAGING INNOVATION

EXECUTIVE SUMMARY
Government plays a vital role in any national innovation system, in that it formulates policies that may or may not be conducive to business environment and may or may not reward entrepreneurial quest for innovative products. It further creates an institutional framework which may in varying degree support basic and advanced research in universities, industrial R&D, and grass-root innovations including in small and medium-sized enterprises (SMEs). The Government also determines whether, in which industry sectors, and to which degree it welcomes foreign participation, e.g. in form of foreign direct investments (FDI) and whether or not it would like foreign firms to engage in R&D activities on domestic soil. This paper describes the Government of India’s activities that influence, directly or indirectly – intentionally or unintentionally, India’s innovation system. It then moves on to how innovation can be encouraged in the country, and how the entire process can be expedited by Government’s role in policy making.

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ROLE OF GOVERNMENT IN ENCOURAGING INNOVATION

INTRODUCTION
The inability of India to adequately provide for its own population no longer reflects a failure of implementation, but rather of a failure of innovation. In India, innovation is emerging as one of the most important rubrics in the discourse on how to bring about greater and more consistent economic and social development. One observes steadily growing investments in R&D across the country, the setting up of national and state innovation bodies, as well as the introduction of government-sponsored innovation funds. Despite widespread agreement on the importance of innovation in India, there are wide gulfs between different conceptions of innovation and the path India that should take towards securing benefits through investments in innovation. India needs more frugal innovation that produces more frugal cost products and services that are affordable by people at low levels of incomes without compromising the safety, efficiency, and utility of the products. The country also needs processes of innovation that are frugal in the resources required to produce the...
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