role of business incubation systems for facilitating technology transfer and development...

Role of Business Incubation systems for facilitating Technology Transfer

and Development

A.Balachandran

Manager

VIT -Technology Business Incubator

VIT University

Vellore

[email protected]

www.vittbi.com

www.knowledgebiz.org

1.Introduction

Technology Transfer issues and impact of ecosystems

Business Incubation systems in India and their networks

Facilitation by Business Incubation systems for SME Technology Transfer

2.Technology Transfer: Issues and Challenges

2.1. Strong Industry-Academia Linkage

US Example: beneficiaries are inventors, Universities and Industry

Bayh-Dole Act: 1980 provided greater momentum

Royalty incomes(2004) : New York Univ(1st) – USD 109 million and California Institute of Technology (20)- USD 9.86 million

National Knowledge commission advocates (in 2007) for a Bayh-Dole like act in India resulting in The Public funded R & D bill in 2007

Will this alone be sufficient? -


2.2.Nascent Stage of Patenting Culture

Number of patents filed- an indicator of Technology potential

2005 statistics

Japan: 3,50,000 patents (1st)

USA: 2,00,000 patents (2nd)

China:1,00,000 patents (3rd)

India: 20,000 patents (11th)

2007: China: 2,45,000 and India: 35,000

Researchers / million of population

Scandinavian countries: 7000USA: 4000India: 156


2.3 Lack of Government funding to harness R & D

R & D spending in % of GDP

India: 0.8%

China:1.23%

Developed Countries: 3%

Israel and Sweden: 4% +

Private Sector Spending:


2.4. Lack of awareness

Widespread Lack of awareness about emerging technologies and derived opportunities

SMEs in need of Information on IPR protection, tech.transfer issues

SMEs in need of education and training in technology adaptation / Technology provider networks

ICT as an enabler in bridging gaps


2.5. After effect of globalization

Lack of competitiveness / use of run of the mill technologies /inadequacy in quality & packaging requirements/ entry of foreign players in the domestic market

2.6.Cultural and regional factors

First generation entrepreneurs / Self employment

•Growth is restricted to the individual’s ability even if there is a potential to become big

•Perceived losses due to delegation,lack of skills / trust etc..

3.Role of Business Incubators

3.1. Business IncubatorsNBIA, USA defines Business Incubation in the following manner:

“Business incubation is a business support process that accelerates the successful development of start-up and fledgling companies by providing entrepreneurs with an array of targeted resources and services. These services are usually developed or orchestrated by incubator management and offered both in the business incubator and through its network of contacts. A business incubator’s main goal is to produce successful firms that will leave the program financially viable and freestanding. These incubator graduates have the potential to create jobs, revitalize neighborhoods, commercialize new technologies, and strengthen local and national economies.”

3.Role of Business Incubators3.2. Status of Business Incubation in India

NSTEDB:

STEP / TBI

STPI

Private initiatives

3.3.Number of Business Incubation environment in India

NSTEDB: 40+

STPI:40

National Knowledge Commission’s recommendation on Quantity and Quality / PPP models / necessity to move beyond metros and elite institutions

3.Role of Business Incubators

3.4 Business Incubator Networks

Indian Science and Technology Parks and Business Incubators Network (ISBA)

Asian Association Business Incubators

infoDev network- VIT-Technology Business Incubator

Incubation Asia Pacific Network Project

EU-India project to promote Cross Cultural Ventures

Healthier fast-food- A Sweden Company- MicVac

Electronic Nose by a UK Company

- Scensive technologies

4.Some Technology Transfer Facilitation Activities in India

4.1. Department of Science and Technology

NSTEDB / TDB : Seed Fund

TDB: Technology Development Fuunding

TIFAC

4.2. DSIR : TDDP / TePP

Council of Scientific and Industrial Research -labs

4.3.Other initiatives

IITs /IISc /APCTT / FICCI-Lockheed Martin / TEDO

5.Suggested framework(enabling Business Incubators as facilitating agencies for

Technology Transfer )

5.1. Linking SMEs (Industry and Academia)

•Majority of the business incubators in India have strong connections with academia •bridging institutions and needy SMEs will happen in a more effective manner

5.2. Enabling Technology development & IPR support

Leveraging incubator networks for enabling SMEs



5.3.Facilitating access to funding (for technology development)

•10 Incubators were supported by TDB seed fund grant

•7 Incubators were supported by DST’s incubation fund

•Every year 5 incubators will be supported by DST’s seed fund grant

•MSME ministry scheme to include 100 incubators in 5 years

•Linkage with District Industries centers and Lead Banks

•Local, regional and International donor / fund raising opportunities



5.4. Increasing the awareness

business incubators can also play a vital role

News letters, Innovation funding programs, advertisements in the media and also through exhibitions. What is needed is a more dedicated approach targeting SMEs and consistency in the approach.

5.5.After Effect of Globalization and Cultural & Regional Issues

a case to case analysis of individual short comings and appropriate actions to overcome these deficiencies is possible.

6. Conclusions

The current core activity of Business Incubators is creation of successful start up ventures.

To enable them to undertake this additional responsibility, a nationwide Business Incubator capacity building program is essential.

A joint activity by DST and MSME will help business incubators to provide this technology transfer support in addition to their core program.

The arrangement shall result in Technology Transfer facilitation cells in the business incubators.

After creation of these cells, a nationwide promotion of this new initiative to reach out to SMEs either directly or through their associations has to be carried out.

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VITTBI

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role of business incubation systems for facilitating technology transfer and development...

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