DST Policy Research

This study attempted to underscore the dynamics of formation, survival and growth of S&T entrepreneurs, and the impact of policy on their business/strategies. The Department of Science and Technology, Govt. of India, has taken several initiatives over the last three decades to foster the emergence and growth of hi-tech innovations in India. A review of prevailing literature leaves much to be desired in the sphere of policy frame and impact of policies on emergence, operations and growth of hi-tech enterprises. It is important to understand the needs of hi-tech entrepreneurs and the issues they face in setting up and managing their ventures. Also, it was felt that one needs to understand the growth pains faced by hi-tech entrepreneurs and the measures they adopt to manage growth. To probe these unexplored areas, EDI undertook this study. The study covers DST supported hi-tech entrepreneurs having emerged with support of STEPs, TBIs, TDB and iEDCs. The ventures in operation for at least 3 years, have been covered in the study. This being a national study, attempt was made to cover all the regions of the country, viz. North, South, East and West. 130 DST supported and 35 non-DST supported hi-tech entrepreneurs, besides 25 other stakeholders from support system feature in the study.

The study covers DST supported hi-tech entrepreneurs having emerged with support of STEPs, TBIs, TDB and iEDCs. The ventures in operation for at least 3 years, have been covered in the study. This being a national study, attempt was made to cover all the regions of the country, viz. North, South, East and West.

130 DST supported and 35 non-DST supported hi-tech entrepreneurs, besides 25 other stakeholders from support system feature in the study.

Under this DST supported initiative, the Institute documented the travails and triumphs of S&T driven entrepreneurs for wider dissemination among youth in various engineering, technology and management institutions, besides R&D laboratories.

This documentation highlights some of the finest innovations done by Indian science and technology entrepreneurs. It showcases how they undertook all this despite many constraints and against all odds. These stories highlight a culture of innovation and spirit of creating things that has changed India; and has potential to change the world. The stories included in this book would motivate the coming generations of students in general, and technology students in specific, to consider entrepreneurship as a career. It would act as a great motivation tool.

The young readers can visualize the process of entrepreneurship. The readers would be able to understand the rhythms of startups: identifying a need, recognizing an opportunity, creating a vision for the enterprise, developing a plan for launching the enterprise, building a support network, taking actions, mitigating risk, adapting to challenges, evaluating progress, making adjustments, and repeating this process.

In addition, to fill the gap of paucity of information and to measure the level of entrepreneurial activities by geographies, products, etc. an integrated online database has also been developed. This initiative will help promote insights into the trends in S&T enterprise creation in the country.

Innovation and entrepreneurship are critical drivers of social and economic development. With increasing awareness about the need to promote Innovation and Entrepreneurship around the world, especially in developing economies, policymakers and other stakeholders have increasingly been viewing business incubation as an important tool to unleash human ingenuity, enable competitive enterprises and create sustainable jobs. Major objectives of setting up TBIs are:

• Creation of technology based new enterprises
• Creating value added jobs & services
• Facilitating transfer of technology
• Fostering entrepreneurial spirit
• Speedy commercialisation of R&D output
• Specialised services to existing SMEs.

Currently, there are about 180 STEPs, TBIs and Business Incubators working in the country. The overall objective of the study was to assess the effectiveness, efficacy and sustainability of the Incubators in India and major issues faced by them to evolve a comprehensive strategy for sustenance and growth of incubation movement, keeping in view the global best practices in incubation space.

In addition to privately owned incubators, the study covered all incubators sponsored by DST and DC (MSME). Further, privately owned incubators too were included in the study.

The findings of the study revealed the following:

• As of now, about 70% to 80% of the incubator space is occupied.
• By and large, the dropout rate of tenants is about 20 to 25% of the total number of graduates mainly due to unviable business idea and debt burden.
• The turnover growth rates (approximate) that tenant companies have typically achieved in recent years is about 10% to 20%.
• During the tenancy, the incubatees have had about 1 to 10 employees by and large. By the time the incubatees exited, the number went up by three to five times.
• In some cases of DST funded incubators several years ago, the equipments installed at the time of commencement of the incubator are now outdated. It is difficult for such incubators to upgrade the same.
• Inadequate and irregular cash flows in most case lead to issues in cash management
• Further, it leads inability to provide marketing support to the tenants.
• Many incubators face challenges in identifying capable tenants as also in technology sourcing

The key objectives of the study were:

• to identify critical challenges related to various Science and Technology dimensions
• to suggest interventions for overcoming these challenges for achieving the vision of “Make in India”

Data were collected from 7 industry sectors viz. Automobiles and Auto-components, Chemicals and Petrochemicals, Construction (equipment, tools and materials), Electronics, Industrial Equipment & Machinery, Pharmaceuticals and Textiles & Apparels for this study.

Broad Methodology of the Study: Four different components included in the study for gaining multifarious insights were:

Country Case Analysis: Based on secondary information from economic plans and strategic initiatives of China, South Korea and Thailand, Country case analysis was conducted to gain insights on drivers of their success in manufacturing and exports.

Analysis Based on Interaction with Industry Associations: Keeping in view the objectives of the study, a schedule was canvassed to office bearers of industry associations to capture first-hand and experience based perspective of industrialists. In all, responses from 54 industry association executives from 8 states were collected.

Analysis based on Primary Sample Survey of Firms : In order to gauge the technology adoption, intensity, skill usage, shortages of technical manpower, efforts and commitment to R & D and their views on various facets related to “Make in India” primary sample survey of 154 firms spread across 9 states was conducted. The sample included small, medium and large scale firms in proportion of 10:7:4.

Analysis based on the Inputs from Skill Creators: We also solicited views on some STI related challenges faced by industry and requirements for success of ”Make in India” from institutions like IITs, Universities, ITIs, TBIs and STEPs. Responses from 10 academicians/CEOs/scientists were obtained.
Descriptive statistics viz. percentages have been used for analysis of primary data.

Key Challenges: In all, 24 distinct challenges for intervention were identified through our approach. The top 10 challenges that need to be addressed for improving on various facets related to Science, Technology and Innovation (STI) for success of “Make in India” are as listed in table below:

In the present context when Government of India is determined to promote “Make in India” as a strategy for economic development of the country, manufacturing sector have to shoulder a major responsibility in making the strategy successful by enhancing their manufacturing capabilities. This can be achieved by developing and implementing advanced manufacturing technologies. Globally the manufacturing industry is undergoing substantial changes and witnessing new performance parameters such as mass customization, ability to personalize their products and deliver better quality at lower price. In addition to the above, globalization and technological innovations have not only lowered the product life cycles across various categories but has also raised the customer expectations significantly. Therefore, for manufacturing industries to survive and remain competitive in this volatile, uncertain, complex and ambiguous (VUCA) world, require to adopt new manufacturing strategies.

Adopting ‘Advanced Manufacturing Technologies’ (AMT’s) has been recommended as a promising solution for manufacturing sector to remain competitive in the current environment (Beatty, 1992; Thomas, Barton & John, 2008). If implemented effectively AMT’s may help these firms to become flexible and responsive to the innovation challenges in this globally competitive world (Boyer et al., 1997). AMT has emerged as a major manufacturing strategy globally as it can help the industry not only to lower their costs but can also help them to significantly improve the quality of output and ensure that customer requirements of timely delivery and customization needs are effectively met (Narain, Yadav & Antony, 2004; Zammuto & O’Connor, 1992). Department of Science and Technology (DST), Government of India under the Technology Systems Development Programme (TSDP) has a mandate to promote application of advanced technology for improving the performance, value addition and exportability of various products produced by Indian manufacturers.

‘Make in India’ is not only a welcome move for the Multinational Corporations (MNCs) to invest into setting up their manufacturing facilities in India but also aims to encourage the Indian manufacturing companies to enhance their manufacturing capabilities, thereby improving their global competitiveness. Indian manufacturing industry is undergoing major changes. Pressures from mass customization, globalization, and overseas sourcing on one hand and on the other side ensuring quality, cost and delivery targets continue to be the major hurdles that a company must address to remain competitive in the current context.

Objectives of the Study

This study aims to capture data relating to identifying the current technological platform of the manufacturing sector in India as well as defining their aspirations towards developing their operations, infrastructure, technical skills etc. The study intends to measure the attitude of industry towards technology and implementing AMT. The study also intends to measure the attitude of Indian Manufacturers towards business development through implementation of AMTs. The detailed objectives are as follows:

• To identify what extent have AMTs been used currently by manufacturing units in India?
• To identify, are there any sequences or patterns of using AMTs?
• To measure the intention of manufacturing sectors to implement AMT within the next three years?
• To identify what will be the main configuration of manufacturing systems in the near future?
• To understand how manufacturing sector perceive and measure the payoffs of AMT?
• To understand if there is any relation between the AMT and performance improvement?
• To understand, how and in what way management style, structure and approach needs to be changed in order to facilitate and leverage AMT?
• To measure how effective were the new manufacturing operations using AMT?
• To understand the nature and type of problems faced by industry after adopting AMT.
• To understand how and in what way had the business principles, organizational rule and practices were modified post implementation of AMT?
• To measure the effectiveness of new business systems employed.

Introduction

Start-ups or new businesses are considered by policymakers and policy studies as a measure of overall entrepreneurial activity and potential within economies (Department of Trade and Industry, 2001). Initiatives and programmes to stimulate higher levels of business formation have generated an extensive array of organisations providing funding, services and assistance to starters of new businesses via a broad portfolio of subsidised and state-supported initiatives and institutions, albeit with noticeable variation by location (Austrian Institute for Small Business Research, 2002).

Deliberate efforts to promote research lab/institutions/university linked start-ups can be seen as the most important and recent in a series of institutions through which universities and colleges still comes primarily from providing trained students who offer knowledge and capabilities and through on going streams of papers, reports, conferences and presentations. Their impact ranges from sustaining the existence to a civil society and human understanding. More focussed programs have included licensing these inventions and the creation of research consortia and science parks. In past few decades, universities have also created policies to permit and promote creation of university start-ups (Miner et al, 2012).

India is a big country with so many problems; these problems can be solved either by innovative solutions through technological uses or cultural solutions. India cannot build its true strength in the technology sector without servicing its own domestic needs. By taking the challenges and building the community of entrepreneurs, the country can boost its efficiency and competitiveness globally (Todd & Javalgi, 2007).

There are number of patents being registered with the government every week with diverse technologies, Indian universities/institutions/research labs have come up with notable viable patents, the main need is conversion of these patents to viable business plans (Source: http://www.ipindia.nic.in/).

The study led to:

• identification of available technologies available in the research institutions;
• creation of prototype;
• development of model for commercialization;
• process for licensing and technology transfer;
• conversion into viable business plan.

A major dimension of women in India, which largely affects their professional career, is their social responsibilities. In India, women carry out a lot of social responsibilities. A majority of the women quit their jobs to raise children, look after their elderly parents, and meet other personal demands. Though 91% of these women want to return to work within a year, only a few are able to secure full-time jobs again. Their opportunities get limited, and it is a huge waste of talent and investment in education and training of women, if they are not pursuing careers; especially when only 5% of these women are able to make it to top level. As per NASSCOM 2015 report, the number of women initiating their startups is also not very impressive.

Realizing the criticality of the issue, some of the initiatives have been taken by the community. For example P. Inc – Women Power@Work, an initiative supported by ‘The Times of India’ aims at bringing women who have taken a break from work, back into the workforce. The initiative, through seminars, training workshops and access to employers provide career resources and a service support system to mid-career professional women enabling them to overcome challenges and return to working life. Similarly, SHEROES assist women professionals across levels, stages and sectors to pro-actively access the largest Opportunity Scope for women. Another community network working in this area is Reboot. It is a network of and for women professionals. It is a platform for women professionals and Corporate India, to come together. Some other community initiatives in this regard are – First Mom’s Club Rebooted, Vapasi – a programme by Thoughtworks and Womens Web.

Corporate India has also taken a call on this front and several national and multinational companies have introduced various schemes to bring women back to work force.

The objective of this study is to identify gaps in bringing technically qualified women, who have taken a career break and wish to re-enter the workforce, back into the mainstream technopreneurial activity, by suggesting a comprehensive policy framework.

The study helped achieve the following objectives:

• To understand the professional challenges faced by women with technical background, who have taken a career break, to re-enter the workforce.
• To get a global overview of the strategies adopted by other countries to bring back such women to the mainstream economic activities.
• To assess the possibility of orienting such women to become technopreneurs by finding out their entrepreneurial intentions.
• To find out specific barriers faced by such women in becoming technopreneurs and comprehensively study them to bring about a clear picture.
• Based on the study, suggest a policy framework for promoting technopreneurship among women with technical back ground, who have taken a career break and wish to re-enter the workforce.