innovation-ashwani & dheeraj

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Sri Sharada Institute Of Indian Management - Research

Approved by AICTE

Plot No. 7, Phase-II, Institutional Area,

Behind the Grand Hotel, Vasant Kunj,

New Delhi110070 Website: www.srisiim.org

Project Report

On

Management of Technology

Submitted To: - Submitted By:-

Prof: N. Venkatesan Dheeraj Kumar Das

Ashwani Sharma


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The innovations open innovation and closed innovations generally tells us about

that ideas should be taken from internal as well as external which means from the

employees working inside the organization and from the external factors which

could be any of it depending upon the type of work for the project. It also tells us

about the procedures and the ways the government involves to promote technology

in the society and how it puts its efforts to help the society as a whole.

Open innovation

O i ti i di th t th t fi d h ld t l


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firms look to advance their technology.Alternatively, it is "innovating with partners

by sharing risk and sharing reward." The boundaries between a firm and its

environment have become more permeable; innovations can easily transfer inward

and outward.

The central idea behind open innovation is that, in a world of widely distributed

knowledge, companies cannot afford to rely entirely on their own research, but

should instead buy or license processes or inventions (i.e. patents) from other

companies. In addition, internal inventions not being used in a firm's business

should be taken outside the company. The open innovation paradigm can be

interpreted to go beyond just using external sources of innovation such as

customers, rival companies, and academic institutions, and can be as much achange in the use, management, and employment ofintellectual property as it is in

the technical and research driven generation of intellectual property. In this sense, it

is understood as the systematic encouragement and exploration of a wide range of

internal and external sources for innovative opportunities, the integration of this

exploration with firm capabilities and resources, and the exploitation of these

opportunities through multiple channels, open innovation is something when the

company uses ideas from its own employee as well as the ideas from the outsiders

which benefits the company .open innovation broadly means to use the knowledge

an ideas from different sources no matter it is from within the company or from the

outside of the company.

Advantages of open innovation

It reduces the cost of conducting research and development in the

organization. It is potential for improvement in development and improves the productivity.

Incorporation of customers early in the development process

Increase in accuracy for market research and customer targeting

Potential for synergism between internal and external innovations

Potential for viral marketing

Disadvantages of open innovation

It has the Possibility of revealing information not intended for sharing.

It has the potential for the hosting organization to lose their competitive
http://en.wikipedia.org/wiki/Intellectual_propertyhttp://en.wikipedia.org/wiki/Competitive_advantagehttp://en.wikipedia.org/wiki/Competitive_advantagehttp://en.wikipedia.org/wiki/Intellectual_property


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Increased complexity of controlling innovation and regulatinghow contributors

affect a project.

Devising a means to properly identify and incorporate external innovation.

Realigning innovation strategies to extend beyond the firm in order to maximize

the return from external innovation.

Models of open innovation

Product platform

Idea competitions

Customer immersion

Innovation networks

Closed innovationsThe closed innovation paradigm, the process leading to innovation is completely

controlled; all the intellectual property is developed internally and kept within the

company frontiers until the new product is released on the market.

Comparison between Open and Closed Innovation

Closed Innovation Principles Open Innovation Principles

The smart people in the field work

for us.

Not all the smart people in the field work for us.

We need to work with smart people inside and

outside the company.

To profit from R&D, we must

discover it, develop it, and ship it

ourselves.

External R&D can create significant value: internal

R&D is needed to claim some portion of that

value.

If we discover it ourselves, we will

get it to the market first.

We don't have to originate the research to profit

from it.


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ideas in the industry, we will win. ideas, we will win.

We should control our IP, so that

our competitors don't profit from our

ideas.

We should profit from others' use of our IP, and we

should buy others' IP whenever it advances our

business model.

Technology and Innovation by the GovernmentScience has played a key role in enhancing the growth and development of society

and generating access to new and improved goods and services. Science

underpins most breakthrough initiatives, but beyond the domain of science,

innovations play a critical role in enhancing delivery of services and enabling

access to improved goods. In view of this, India needs to stimulate and strengthen

its entire eco-systemthe formal scientific and industrial system, as well as the

innovation eco-systemto develop solutions for the countrys agenda of faster,

sustainable and more inclusive growth.

Innovation can fulfill needs, which are not met by conventional means and this is

critical in view of the numerous challenges the country is facing in delivering

services to the people, especially at the bottom of the pyramid. In this context India

needs more frugal, distributed, affordable 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 innovation processes that are frugal in terms of resources required and

these products and services must also have a frugal impact on the earths

resources and must be designed to be environmentally sustainable. Innovations

India hence need to cast a wider net to benefit more and more people who are

currently marginalized by the system.

A holistic view of the science, technology, and innovation eco-system can ensure

best points for intervention in the system. Stimulating this eco-system requires

enablers in the form of policies, strategies, novel ideas, and catalysts to effectively


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to be addressed for strengthening the eco-system and the proposed approaches for

the way forward:

Enrichment of Knowledge base

Basic research in India has generally followed global models during the last three

decades. Indian systems for supporting basic research has so far not adopted

adequate measures for promoting joint research with active schools in the global

scene in frontier areas of science. The challenge however is how to spot, attract,

nurture, and encourage sparks and talent in scientific research and identify areas of

national interest and gaps for promotion of basic research and improving the quality

of science education.

Incentivizing R&D in Public and Private Sector

A strong R&D sector is important not only for competitive growth but more

importantly for addressing key strategic issues. While public funded institutions aregenerating technology leads, their levels of utilization by commercial enterprises

have been limited. The present models of research funding in the country do not

facilitate the funding of projects in the private sector, whereas several global models

do so. Current fiscal incentives for attraction of investments into R&D by way of tax

benefits have led only to marginal results and the linkages between academia-

research and industry remain under developed and weak. The challenge is how to

create a vibrant landscape of Public-Private Partnership and an enabling framework

for attracting investment from the industrial sector into R&D system and incentivize

the same for linking development with deployment in the innovation and technology

sector.

Improving Governance in S&T Institutions

Optimum utilization of appropriate institutional framework created to enhance

Indias R&D capability need to undergo critical review to ensure that the much

needed resources both financial and human are deployed in an optimal fashion It


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appropriate institutional framework and organizational mechanisms cutting across

departments to derive maximum benefits of the investments. The challenge

therefore is to bring in radical but participative transformation, which is multifaceted

and multidirectional for structural changes in rebuilding and transforming existing

institutions.

University, industry, and Scientific Establishment Collaboration

India has the third largest education system in the world. A conducive research

sector requires cutting edge research universities, industrial R&D Centres and a

network of Government Laboratories with well-maintained infrastructure and liberal

funding, working together towards defined objectives. Further, effectivemechanisms of collaboration need to be created for universities and industry bodies

so that research output and innovations can effectively be commercialized and

transformed into marketable products and services for last mile benefits. A cluster-

based approach to spur innovations at universities could be adopted wherein a

minimum critical mass of universities is identified and efforts are made to create or

strengthen the innovation eco-system around them. The innovation universities

could also provide a platform for experimenting with new models of universities

where the above mentioned integration could be realized.

Promoting Collaborations through Clusters

Collaborations can play a crucial role in stimulating innovations and fostering

knowledge transfers which would foster interconnections that link intellectual,

financial, human, and creative capital as well as unleash underutilized capital. Such

enterprises could take the shape of physical or virtual clusters, which bring together

research, business, risk capital, and creativity to turn ideas into products,

processes, and services. In the Open Innovation Model, by using an open source


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and collaborative approach, organizations could expect to develop affordable

products for the world which otherwise would not be a cost effective option for many

organizations. Many clusters and collaborative initiatives to foster innovation have

begun to operate in the country. These include SIENthe Science and

Entrepreneurship initiative hosted in IIT Powai; an automotive cluster in Pune; an

initiative at the CMTI with involvement of ISRO to develop technologies for flexible

manufacturing, and many others.

Government needs to take appropriate steps to promote the growth of such

collaborative initiatives, both in the physical and virtual domains. The National

Innovation Council (NInC) is in the process of facilitating the setting up of industry

and university based clusters to spur innovations.

Supportive Financial SystemInnovation requires a financial system which is supportive and inclusive and which

provides the necessary risk capital to spur innovations and enterprises. Venture

Funds are recognized globally as the most suitable form of providing risk capital for

the growth of innovative technology and breakthrough ideas. While India is amongst

the top recipients in Asia for Venture Funds and Private Equity Funds so far, these

investments need to be focused on small early stage start-ups and not only into

relatively large and safer investments. To have a greater impact existing funding

options, especially made available by the Government need to be increased. Indias

dependency on foreign VC/PE funds and almost no domestic venture capital needs

to be addressed. Despite the growth in the VC industry in India and the

complementary increase in government schemes, the seed funding stage continuesto be severely hampered. Also, it is especially crucial to provide funding for

stimulating innovations that will produce socially useful outcomes for poorer people

and enterprises which are focused on delivering this. In light of this, the Indian

innovation eco-system requires early stage funds acting as angel investors. A

dedicated fund, seeded by the Government, and targeted at promoting.

Platform for Best Practices and Innovationsbenefits to citizens and meeting the challenges of inclusion in areas such as health,


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education energy, low-cost housing, sanitation, and more through innovative

solutions. Often these go beyond the formal confines of R&D labs to include

innovations in public service delivery or organisational innovations in local

communities aimed at inclusion. However, there is no aggregated platform or single

repository to collate and disseminate these best practices and ideas. Also, while

some such innovations manage to garner attention on a national scale, most of

these workable solutions remain confined to their local contexts and dont achieve

economies of scale because of the lack of a single platform for sharing these best

practices among multiple stakeholders. Strengthening the innovation eco-system

requires a platform for information sharing and dissemination to ensure: (1)

improved access to knowledge and (2) Support in the form of resources, linkages,

mentoring and outreach. Greater knowledge of innovations can stimulate their

adoptions and adaptations on a large scale. This decentralized, open, and

networked model would enable information sharing on innovations and

collaboration among stakeholders on an unprecedented scale.

Improving the Flow of Technology

India is in a unique position to mount a strong initiative for affordable innovations for

technologies for social and public good by taking advantages of a) low expertise

costs, b) vast talent base and c) the residual idealism in the society. However,

engagement of multiple stakeholders and creating Public-Private-Partnership for

promoting people-centric research is a challenge to address national goals with

specific targets in a time bound manner. While technologies for public, strategic,

and social goods would require collaborative excellence, competitive excellence

models for private good would come from industrial sector, as is the case in most

developed countries. Food security of India is closely related to development of

technologies for increasing the agriculture outputs through process innovations for

land saving and water use. The question is how to develop and deploy new agro

biotechnology tools and precision agriculture for increasing the output of agriculture

sector in the country by synergizing the strengths of institutions both under public

and private sector and adopting a new approach for agriculture research and

extension. To achieve optimal health for its people, India has unique challenges due

to its large population, demographic


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transition and vulnerability to all epidemics. Biomedical devices and instrumentation

forms an area of serious gap in the country. Breakthrough innovations, with

appropriate stress on translational research for affordable health care, are the need

of the hour and would call for new models and mechanisms for evaluating

technologies for improving healthcare at individual and public health level, fostering

academia-industry linkage; and linking technology developers with industry for

translation of lead products and processes. Water challenge is a major national

issue in the country both in terms of quality and availability. Sustainability of

research led solutions depends on interface of technology with policy and societal

behavior. Water related technologies form an ideal theme for building state-centre

partnerships. The challenge therefore is to convert research outputs from the

laboratories into revenue models based solutions in a coordinated manner among

the relevant departments in both states and centre for innovative deployment under

real field conditions. India is critically dependent upon import of energy supply

sources. Energy security demands integrated approaches and planning. Decoupling

energy demand from GDP growth is also essential for complying with

responsibilities towards National Action Plan on Climate Change. Therefore, the

challenge is to increase the share of clean energy options in the total energy basket

of India. MSME sector in India, which is a strong pillar of economic growth is

characterized by low technology levels with some exceptions. This acts as a major

handicap in the growth of MSME sector in the emerging global market and is

therefore, seen as the next frontier for infusion of technology, by increasing

penetration in the MSMEs. It is thus a challenge as to how the MSMEs embrace the

new technologies to leap frog and contribute significantly in the inclusive growth

process.

Intellectual Property Rights: Intellectual property rights (IPR) have become

extremely important in the new knowledge economy due to global competition, high

innovation risks, short product cycle, need for rapid changes in technology, high

investments in research and development (R&D), production and marketing and

need for highly skilled human resources. Relative ranking of India as source of IPR

has improved considerably over the years.


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While the focus should be on global leadership in S&T both at organizational and

individual levels, we also need to follow Open Source Innovation Policy and

promote IP acquisition by the government for non-exclusive licensing for public and

social good sectors of research and development to achieve the objective of faster,

sustainable and more inclusive growth and ensure that benefits must reach the

poorer people thus utilizing Indias advantageous place to leverage not only its

economic strength but also its Scientific and Technological capability by employing

desired policy intervention and providing necessary resources. The country thus

has to emerge as a technology driven super economic power in globalized

knowledge economy.


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