Unleashing India’s Innovation and Entrepreneurship Potential

Unleashing Indias construct and Entrepreneurship Potential India has been one of the best performers in the world sparing in recent years. Indian economy has been one of the stars of international scotchs increment 9. 6% in 2006 and 9. 2% in 2007. Growth had been supported by market place reforms, capital inflows of FDI, rising opposed exchange reserves, both an IT and objective estate boom, and a flourishing capital market. Like rest of the world, however, India is bidwise facing testing economical times (economic recessesion) with inflation running at 11%, the highest level seen in a decade .The Indian rakehell market has fallen to a greater extent(prenominal) than 40% in six months from its January 2008 high. $6 billion of foreign broths wee flowed issue of the country in that period, reacting both to slowdown in economic harvest-home and perceptions that the market was over-valued. Its high time we recognize the growing signifi fundamentce and visible concussion of Entrepreneurship and innovation on wealth-creation and takement-generation in India. INNOVATON Innovation is a process to strain measurable value enhancement in any commercial activity, by dint of introduction of new or improved goods, services, operational and organizational processes.It is a meaningful factor in fostering militantness, improvement in market share and quality. It reduces costs . Innovation is a key driver of economic maturement. It is both creation, commercialization of new knowledge and diffusion and absorption of lively knowledge in new locations. Growth, accompanied by innovations, has been associated with rising life sentence standards and a reduced number of poor people people. India is incr easemently becoming a top global innovator for high-tech products and services.Still, the country is to a lower place playing compared to its innovation potential which has direct implications for long-term industrial competitiveness and economic growth. About 90 % of Indian work shove is employed in the easy sector. This sector is often characterized by underemployment, low-productivity and low-skill activities. Although India has the benefit of a dynamic youth population , with more than half of the countrys population under 25 years old, lonesome(prenominal) 17 part of people in their id-20s and older have a secondary education. To uphold rapid growth and athletic supporter alleviate poverty, India necessitate to aggressively tap its innovation potential, relying on innovation-led, rapid and inclusive growth to turn over economic & social rendering . According to one of the conclusions the output of economy could increase more than atomic number 23 folds if each enterprise could absorb knowledge alert in India and achieve the level of productivity of top enterprises in their sector.By applying knowledge in new ways to production processes, better and new products can be produced with the same or fewer inputs to meet the i nescapably of all sections of Indian society. The very popular Dabbawala remains is an innovative business process which allows 4,5005,000 educated Dabbawalas to deliver almost 200,000 lunches to workers every day in Mumbai. The Dabbawalas reportedly derive one mis meditate per 6 million deliveries. So remarkable is this speech network that inter bailiwick business schools have studied the work flows of the Dabbawala system to understand the key to its stellar performance rating.To unleash its innovation potential, India needs to develop following st measuregies Increasing level of competition to improve the enthronisation climate, supported by stronger skills, better information infrastructure and more globe and semi confidential finance. Recommended actions to raise competition involve removing regulations which are not necessity and applying essential ones more transparently in product, land, labor, capital, and infrastructure services marketsfor ex ample, easing limi ts on small industries, restrictions on foreign direct investment (FDI) etc.Limited skills and training are a major bottleneck. Only 16 percent of Indian manufacturing firms offer in-service training, compared with 92 percent in chinaware . The Indian firms that provide in-service training are 2328 percent more productive than those that do not. This bottleneck could be overcome (i) by providing commonplace matching funds for firms to invest in training and (ii) change magnitude the fiscal and practiserial autonomy of universities and colleges, and increasing private participation in higher education. Better information flows are needed high-speed national research and education networks accelerate the pace of new discoveries and the expansion of knowledge. Information-related actions could imply expediting the allocation of radio and wireless broadband spectrums, increasing targeted subsidies for rolling out homespun mobile and broadband, and agreeing on an organizational st ructure to deploy and manage a national research and education network. gt India can benefit from bread and butter efforts to create and commercialize knowledge, swear out in diffusing existing global and local knowledge and by increasing the capacity of smaller enterprises to rivet it. Private enterprises need to increase R&D spending. Between 1998 and 2003, multinational corporations spent $1. 3 billion on R&D in Indiashowing that its valuable assets could be exploited more effectively. Measures to spur private R&D could include consolidating and expanding early- play technology development programs as wholesome as developing a policy and action plan to wasting disease public procurement to promote innovation.New domestic knowledge needs to be converted to commercial use. Of the top50 applicants for patents in India between 1995 and 2005, 44 were foreign firms. Only six were Indian. Actions to promote commercialization and strengthen links among industry, universities and pu blic laboratories could include providing support to technology transfer offices, creating a patent steering corporation, developing technology parks and incubators and improving Indias regime for keen station rights.India should also consider enhancing support for higher-risk technology R&D and commercialization by strengthening its New Millennium Indian engineering science Leadership Initiative and by opening the program to international quislingism and giving grants to both research institutions and private enterprises, with sharing of any resulting royalties. The Diaspora needs to be tapped more effectively. About 20 million people i. e. 2 percent Indias population earn the equivalent of two-third of Indias GDP. travel to tap more efficiently tap Indias overseas talents could include supporting a larger Diaspora network, building on existing groups that aggregate this populations (NRIs) talent and capital for use in India. India would benefit from fostering more inclusiv e innovationby promoting more positive R&D efforts for poor people and more notional proletariat efforts by them, by improving the ability of informal enterprises to exploit existing knowledge. Inclusive innovation can play a particular role in lowering the costs of goods and services and in creating income-earning opportunities for poor people.The Council of Scientific and Industrial Research has developed technology applications for rural India, university and formal private initiatives e. g. e-Choupal. To leverage traditional knowledge into revenue, a policy-oriented intellectual keeping rights think tank could propose how to implement a cheaper intellectual property regime. Finally, successful technology upgrading programs could be extended to help informal and rural enterprises make better use of existing knowledge. ENTREPRENEURSHIP Entrepreneurship represents a mindset.It is the skill of finding creative, innovative and profitable solutions to hassles and to be paradigm pliant. An entrepreneur is someone who assumes the pecuniary risk of the initiation, operation and management of a business. They arent generally high-risk takers when they cant mend the outcome of the situation. They tend to set realistic and achievable goals, and when they do take risks, theyre usually calculated ones based on facts and experience, rather than instincts. Entrepreneurs are participants not observers, players not fans.And to be an entrepreneur is to be an optimist, to believe that with the right totality of time and resources, you can do anything. Why is the US more successful than India? Is it because we Indians are less smart than Americans? No, Indians are universally known for their intelligence. Is it because they have greater resources? No, India is as much if not more rich in natural resources. Then, why is the US more prosperous than India? The US is more prosperous simply because they have more entrepreneurs. Entrepreneurs have a salient role to play i n driving Indias growth.With a slow-moving economy, it is vital that government academic world and regulatory bodies create a favourable environment for entrepreneurs to flourish. Entrepreneurship is a critical element of a growth economy and India is poised to unlock a Silicon Valley like entrepreneurial boom through the next 10 years. If India needs to get rid of poverty, we have to grow. To grow, we have to employ the unemployed. NASSCOM and CII have estimated that if India wants to be a developed country by 2020, it needs to create 10 million jobs.The million-dollar promontory is how these jobs are going to be created. Neither the Army nor the police force can soak up such a large number, nor can the Railways or the government. They can only be engrossed by the private sector. The industrial set-up is expanding, but not at the rate that can employ such large numbers. Is there any solution to this grave problem? Fortunately, YES, the answer is entrepreneurship. As per TiE (The IndUS Entrepreneurs- a non-profit organization, promoting entrepreneurship) each entrepreneur creates 30 jobs.An entrepreneur creates jobs, setting stage for a flourishing economy. Over 30% of Microsoft employees are Indians. The NASA relies on Indian brains for its various missions. IIT graduates are considered the worlds brightest. Why do these people flock to the US, simply because the US has more opportunities? What can we do to stop this self-ruining brain drain? The answer lies in promoting entrepreneurship. The beginnings are already in place, steps have been taken in the right direction. thither is an overall shortage of start-up entrepreneurs in India compared to the rest of the world.One of the most significant deficiencies an Indian entrepreneur may face revolves around capital. Although there is ample willingness to invest capital in a well-established enterprise, there is little willingness to fund start-ups. The quality and quantity of venture capital in India is low. The benefits of entrepreneurship to the society and the economy as a whole are enormous. Entrepreneurship helps in avoidance of monopolies and cartels and help in checking large corporations and MNCs.Entrepreneurs realize the tremendous demand for goods abroad and help to market the purposeless. This will make the Indian market export competitive and at the same time, the MADE IN INIDIA brand more acceptable. The surplus footstock which would have been otherwise rotting in the government storehouse, can be exported, thus earning foreign exchange. The government gets rid of the excess stock succession the exporter earns revenue, leading to a win-win situation. An important factor influencing FDI, from developed nations to developing nations is the concentration of entrepreneurship.FDI is directly proportional to entrepreneurship. The highest contributor of FDI is the US. The US readily welcomes Indian exports and also lists Indian companies on American exchanges. No wonder NASDAQ rocks on the overcome of Infosys Chairman, NR Narayan Murthy. So, the message is clear we need more entrepreneurs. It is high time, the government realizes that only and only ntrepreneurship can help it grow at the high rate and rethinks its policies. To unleash its entrepreneurship potential, India needs to develop the following strategiesNurture early stage entrepreneurial ventures based on technology and innovation. Create physical infrastructure and support systems necessary for business incubation activities. Facilitate networking with professional resources that include mentors, experts, consultants and advisors for the incubated companies. Identify technologies/ innovations which have potential for commercial ventures. Promote and foster the tactile property of entrepreneurship. Carry out activities that facilitate knowledge creation, innovation and entrepreneurship activities.