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Inclusive Innovation: A Game Changer For National Development & Growth R A Mashelkar President Global Research Alliance

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Inclusive Innovation:

A Game Changer

For

National Development & Growth

R A Mashelkar

President

Global Research Alliance

What is Innovation?

‘Innovation is the

successful exploitation

of a new idea’

Through Innovation

we achieve

More from Less

for More

Industrial Enterprises aim at

Getting

More( Performance)

From Less (Cost)

For More (Profit, value to the shareholder)

Inclusive Innovation

Getting More

from Less

for More and More People

More and More People

4 billion people with income less than $2

per day!

Need not ‘low cost’ but ‘ultra low cost

solutions’.

Need not ‘affordability’ but ‘extreme

affordability’

Ultra Low Cost AIDS Triple-Combination

(stavudine (d4T) + lamivudine (3TC) + nevirapine)

CSIR India Contribution

10 fold lower

not 10% lower

INDOVATION

Disruption at Ultra Low Cost

Products To __________________________________________________________

__________________________________________________________

__________________________________________________________

__________________________________________________________

__________________________________________________________

From

Psoriasis Treatment $20000 $100

Artificial Foot $12000 $28

Cataract Surgery $3000 $30

Laptop $2000 $100

Hepatitis B Vaccine $18 $0.4

Price Low High

High

Haves

Have - Nots

P E R F O R M A N C E

Price Low High

High

Haves

Have - Nots

P E R F O R M A N C E

Price Low High

High

Haves Have - Nots

P E R F O R M A N C E

EXPERIENCE

TATA NANO

Model T $19,700 Ford

Beetle $11,333 Volkswagen

Mini $11,777 Volkswagen

Nano $2,000 Tata Motors

Transformational

Innovation

“Very soon, your chauffeur will

drive to your house in a

Nano.

You will need to make space

in your driveway for your

chauffeur's car, but more

importantly, you will need to

make space in your minds for

this transformation.”

- R A Mashelkar

• CSIRO, Australia

• CSIR, India

• CSIR, South Africa

• FhG, Germany

• TNO, Netherlands

• VTT, Finland

• SIRIM, Malaysia

• DTI, Denmark

• Battelle, USA

The Power of GRA

• 60000 scientists from 5 continents

• Scientific credibility

• Members driven by:

– Innovation, Compassion, Passion

• Collective Mandate:

– Global Good through Global Knowledge

19

First commercial Xerox copier (Battelle)

Dry copying process developed into the first office copier machine in 1944

MP3 (Fraunhofer)

Development of high quality, low bit-rate audio coding for quality transfer of music

Wi-Fi(CSIRO)

Development of wireless LAN technology

Power of GRA- High Tech Pioneers

20

But GRA believes in

Inclusive Innovation

A breakthrough in TB after the first new molecule Rifampycin in 1963. Clears TB in two months rather than 6-8 months (CSIR India)

Orbital implant (CSIR SA)

A low cost eye replacement with unique advantages

Bioactive paper for diagnostics (VTT)

Includes functionalities based on the selective reactions of biomolecules

Global Knowledge for Global Good

www.research-alliance.net

GRA Dyadic Relationships

CSIR

South Africa

DTI

Battelle

Fraunhofer

CSIR India

CSIRO

TNO

SIRIM

VTT

Global Knowledge for Global Good

Network of Networks

• Regional networking

with partners from

Oulu in electronics

and tele-

communications

programmes

Lappeenranta University of Technology (Lappeenranta)

Salcomp Oy (Kemijärvi)

CCC (Oulu)

Sonera (Helsinki)

Nokia Mobile Phones (Oulu) National Semiconductor Finland Oy, former Fincitec Oy (Kemi)

University of Oulu (Oulu)

Efore Oy (Helsinki)

Projekti-Insinöörit Oy (Helsinki)

Cybelius Software Oy (Oulu)

Teleste (Turku)

Tampere University of Technology (Tampere)

Nokia Networks (Oulu)

ADC Telecommunications Oy (Oulu)

VTT, Technical Research Centre of Finland (Helsinki)

Helsinki University of Technology (Espoo)

JOT Automation Oy (Oulu)

Nokia Research Center (Helsinki)

VTT, Technical Research Centre of Finland (Oulu)

Extrabit Oy (Oulu)

ABB (Helsinki)

NetHawk Oy (Oulu)

Elektrobit Oy (Oulu)

Vaisala Oyj (Helsinki)

Polar Electro Oy (Oulu)

Filtronic LK Oy (Oulu)

Aspocomp Oy (Helsinki)

Elcoteq Network Oyj (Lohja)

Planar Systems Oy (Helsinki) Ultraprint Oy (Oulu)

Suunto Oy (Helsinki)

Picopak (Lohja) Nokia Mobile Phones (Salo)

23

Power of Network of Networks

n(n-1)

2

G =

Design

Develop

Deploy

Local

Organizations

Local Capacity Building

GRA spans end-to-end

The Power of partnering 10,000 Development Practitioners with 60,000 Scientists

Potential for inclusive innovation

Innovative

Solutions for

accelerated Sustainable

Development

The World Bank

Global Knowledge

Repository

Development

Finance

Project Funding

Harnessing Inclusive Innovation

• Development Banks (World Bank, ADB,…)

• Foundations (BMGF, Rockefeller,…)

• National Initiatives

• Private Sector- ‘Doing Well By Doing

Good’

• Innovation By The People- Grassroot

Innovators

World Bank

(India, 1990-92)

Industrial Technology Development Programme

(ITDP)

Sponsored Research and Development (SPREAD)

International

$18 per dose

40 Cents per dose!!

SPREAD funding creates

India’s Hepatitis B Vaccine

GRA leadership helps WB to shape agenda of the future for STI- World Bank Forum –Dec 2009

From ITDP to IIDP

SME Development

Human Development

Creation of Venture Capital

Creation of Social Capital

Transforming public institutions

Transforming poor lives through innovation

Industrial Technology

Development Programme (WB)

Inclusive Innovation

Development Programme (WB)

Ecosystem for Industrial Research and Technology Development

Ecosystem for Inclusive Innovation

Country specific

MDG specific (STI driven)

Soft loan to countries

Committed to innovation challenges

Consortia of intra-country organizations

Consortia of global funding organizations

“Inclusion should not only create opportunities for all within a society but also be globally inclusive.

You cannot leave behind the people that I saw in Rajasthan in India for instance…”

- Robert Zoellick

December 2009

New Delhi, India

Harnessing Inclusive Innovation

• Development Banks (World Bank, ADB,…)

• Foundations (BMGF, Rockefeller,…)

• National Initiatives

• Private Sector- ‘Doing Well By Doing

Good’

• Innovation By The People- Grassroot

Innovators

5 Continents

22 Countries

7 Rounds

4000 applications

104 Grants

Bill and Melinda Gates Foundation

Round 6 Winners- Just Announced!

Low Cost, Low Power, Mobile Diagnostic Ultrasound Scanner

A Non-invasive Cell Phone Imaging Probe for Diagnosing Malaria

Low Cost Pulse Oximetry Probes for Newborns in Low Resource Settings

Low Cost Sustainable Solution for Rural Ultrasound

Low Cost Decentralized Sanitary System

Inclusive Innovation

at Harvard

supported by BMGF

Paper Based Low Cost Diagnostics

George Whitesides

Highest Cited Scientist in the World

Harnessing Inclusive Innovation

• Development Banks (World Bank, ADB,…)

• Foundations (BMGF, Rockefeller,…)

• National Initiatives

• Private Sector- ‘Doing Well By Doing

Good’

• Innovation By The People- Grassroot

Innovators

$ 2000!

How did the journey

from $2000 to $200 begin?

Inclusive Innovation Journey is unending….

• Real Ultra Low-cost computing-cum-access device

• 5/7/9 inch touch-screen gadget packed with internet browsers, PDF reader, video conferencing facilities, open office, media player, remote device management capability, etc.

•From $2000 to $200 to $35 ……..

$35 Laptop

23 July 2010

Harnessing Inclusive Innovation

• Development Banks (World Bank, ADB,…)

• Foundations (BMGF, Rockefeller,…)

• National Initiatives

• Private Sector- ‘Doing Well By Doing

Good’

• Innovation By The People- Grassroot

Innovators

Old Model:

Doing Well AND Doing Good

New Model:

Doing Well BY Doing Good

$ 5000 $ 70

Refrigerators

Chotu Kool- World’s Cheapest Refrigerator

Creating a New Refrigeration Category!

•World’s lowest cost refrigerator (~ $70)

•Co-created by corporate and rural consumers

• Advanced solid state technology to cool instead of traditional compressors.

•Unconventional top opening ensures cold air settles down in the cabinet to minimize heat loss and power consumption.

Less than $20

Innovation’s Holy Grail

C.K. Prahalad R.A. Mashelkar

Harvard Business Review- July, August 2010

Harnessing Inclusive Innovation

• Development Banks (World Bank, ADB,…)

• Foundations (BMGF, Rockefeller,…)

• National Initiatives

• Private Sector- ‘Doing Well By Doing

Good’

• Innovation By The People- Grassroot

Innovators

Power of

the self

Most Modern Energy

Storage Device- Ultra-

Capacitors!

Most Modern and

Efficient Lighting

Devices- LED!

75 watt

Generator

Ashish Gawade

Remya Jose- Grassroot Innovator

National Innovation Foundation

National Development Challenge

Health

Inclusive Innovation- Diseases of the poor

More than 2 billion people are affected with TB- most of them poor

2 deaths every 3 mins in India

The Challenges:

1. Finding new molecules, since bacterium becomes drug resistant

2. Cheaper ways of drug discovery

3. Shorter times of treatment

4. Patient Non-Compliance

CSIR, India

Open Source Drug Discovery (OSDD) Initiative

-A global web-based platform for scientists and

students to share research and collaborate on

neglected diseases

-4500 partners, 60 institutions from 130 countries!

CSIR India- Lupin meet the challenge of reduced time for

TB treatment

Discovery of a new drug molecule, first in last 40 years

Reduces treatment to 2 months

In phase II clinical trial

Slide 65 of 17

Nano encapsulated drug delivery system- CSIR South Africa

TB treatment – The Challenge of Non-Compliance

• Treatment period of 1-2 years

• 50% mortality in patients

• Logistical challenges

• TB treatment cost at 250-300m USD

Mono-dispersed nanocarriers for better absorption in the body

Once a Week Pill

Slide 66 of 17

The Challenge:

• Reducing medical costs

• Medical services in rural areas

• Distributed healthcare

• Medical diagnostic devices on mobile platforms

Medical Devices – Mobile Health Applications- CSIR, South Africa

National Development Challenge

Water

LifeStraw – water for the world

Problem

6,000 people die each

day of water borne

diseases; 1 billion people

lack access to safe

drinking water

Innovation

Portable water purifier;

2 litres consumption per

capita per day & lasts for

a year

Affordable at $3 ?

Source: www.lifestraw.com

Ultra Filtration Technology For Rural Areas

CSIR India

Water On Wheels!

National Development Challenge

Information and Communication

Life Line Radio for Remote Rural Areas

GRA’s Network of Networks powering low cost internet access to rural Africa…….. FhG, CSIR SA, CSIRO, VTT

• ‘Connecting the unconnected’ with next-gen technology

• Pilot through Macha community in Zambia

National Development Challenge

Energy

Family Based Electrification, TNO

Affordable energy for poor rural families to

provide light or charging of small appliances

through a ‘heat battery’ transforming biogas or

solar cooker to electrical sockets

National Development Challenge

Agriculture

Agrotechnology for

Inclusion and Competitiveness

CSIR, India

• Menthol Mint- Superior Variety Kosi by CSIR India

• Early maturing, inter cropable, higher oil yield

• 40 million mandays of jobs generated

• 80% of global menthol mint market captured

• Displaced China to second position in exports

So, Inclusion & Global Competitiveness can go together!

Slide 77 of 17 © CSIR 2006 www.csir.co.za Slide 77

Hydroponics- CSIR South Africa

Slide 78 of 17 © CSIR 2006 www.csir.co.za Slide 78

Harvesting Decortication

Fleece production Moulding

Sisal Value Addition- CSIR South Africa

Mercedes Benz Car Components

Aquaculture Sustainable Aquaculture, CSIRO Australia

Socially Economically and Environmentally

Sustainable aquaculture breeds, feeds and

production technologies to improve coastal

livelihoods

Conducive Govt Policies

New Performance Measures for Firms

Inclusive Innovation Mindsets- Policy makers, STI community, business sector, citizens

Inclusive Innovation Leaders with a Difference

What do we need for Inclusive Innovation?

Conducive Public Policy

Policy on mandating institutions to drive the inclusive innovation agenda.

Incentivizing public and private sector to undertake R&D leading to inclusive innovations

Targeted funding for inclusive innovation

National and global recognition for game changing inclusive innovation

Target Funding At:

Grand challenges : Setting ambitious targets in diverse areas and invite competitive bids from across the nation

Early stage financing: Creating special instruments to provide early stage financing to support innovative breakthroughs in `inclusive innovation’

Promoting diffusion: Prototyping, scaling up and wide scale deployment of proven technologies (including grass root innovations), belonging to the `inclusive innovation’ class.

Fiscal Incentives

Small subsidy (~20%) for production costs to offset risks

Public procurement, guaranteed off-takes,

Price subsidy for inclusive innovation products and services

Low-cost Loans

Matching Grants

Venture Capital (Patient)

How Can GRA Support Vietnam?

Inclusive Innovation in Vietnam

• Dr. Nguyen Thi Ngoc Tram’s herbal based

product Crila provides a remarkable cure for

uterine fibroid tumors.

•Dr. Tram sold her three houses to develop this

medicine just to serve a social cause dear to her

heart!

•Crila does it at less than 2% of the cost of its

competitor from a multinational company.

•Cured around 300,000 patients so far- but in

Vietnam only

•Can we help Crila become a global product? Can

GRA help?

Current Drug Development

Today 10years

ago

Cost of development $1.5 b $250 m

Time 15yrs 10yrs

Potential new drugs (NCE) ~30 ~40

Cost of Treatment: $20000! Time for Development: 10 yrs Cost of Development: Few hundred million dollars

X $100?

X 5 yrs?

X <$10 mn?

CSIR India, NMITLI Challenge

“When you wish to achieve results that have not been achieved before, it is an unwise fancy to think that they can be achieved by using methods that have

not been used before.”

- Sir Francis Bacon

Traditional Medicine

Modern Medicine

Modern Science

Standard Drug Delivery Process

Molecule Mice Men

Reverse Pharmacology Process Reverse Pharmacology Process

Men Mice Men

Indian Psoriasis Breakthrough

• Dr Tram visited CSIR India’s Central Drug

Research Institute, Central Institute of

Medicinal & Aromatic Plants and National

Botanical Research Institute

• IIP Vietnam can facilitate further

partnerships

GRA can help Crila become

a global product!

Launch Inclusive Innovation Agenda

Strengthen STI Capacity of Vietnam

Leverage STI capacity to alleviate poverty and meet MDG

Give access to and deploy GRA inclusive technology portfolio in partnership with WB as part of IIP, Vietnam

Facilitate inclusive technology creation, diffusion and absorption through global networks

Contribute to significant acceleration of sustainable inclusive growth in Vietnam

GRA – A Committed Inclusive Innovation Partner for Vietnam

Inclusive Innovation: A Win-Win

Inclusive

Innovation Industry

Competitiveness

Increased

Quality of

Life of Poor

Deputy PM Nhan