 Yeah friends as we all know that India is a very fast growth trajectory being the fourth largest economy in the purchasing power parity and there is a global market full towards India. We say seven eyes so India is a very happening place to be at this current moment. To be from the S&T department we have to have view on how India is fearing on various innovation related activities. If we just this is a recent report brought out by World Economic Forum we are very strong as far as our knowledge force S&T manpower goes. We rank fourth globally even the quality of S&T institutions is also fairly good. Funding on R&D which is close to 1% of the GDP this is a less as compared to global standards. Our capacity of innovation is also needs to be upgraded. University industry research collaborations as you are all coming from the academic background this also needs to be strengthened. Then the two areas grey areas I must say which needs boost up is the conversion of innovation into patents and the research commercialization. These two areas are a far cry from the global standards. These two areas the systems are to be devised which give impetus to innovation as well as entrepreneurship. These areas where we are focusing at the moment in the department. This is a broad overview of the Indian innovation system and in fact it is a network of both public and private funded institutions which starts from the initial stage of the innovation the survival phase and the growth phase. There are various formal as well as informal institutions involved in taking the innovation value chain forward. This is a complicated very difficult and most of the institutions you will find here what I am particularly looking is the steps TBI and which is a part of the DST wherein we promote incubators in most of the academic institutions of excellence. The innovation chain starts with the ideation and the next link is having proof of concept pilot plant stage, pre-commercialization price, validation then going in for formal commercial product process. Our mechanism falls in between the two links which is a proof of concept and pre-commercial price. Let me dwell upon what are the various features of Indian innovation system starting with the strengths. We have very good S&T infrastructure more than 400 R&D labs, 4000 engineering colleges, fast pool of S&T man pass, I am told about 3 labs. There is a turning of 3 labs students, engineering students every year and over a few years what we have seen is the lot of anorized come returning back to India who are very rich in the domain knowledge and have the right linkages, resources and networks. So, they are also actually becoming a role models in Indian academic mainly in technical institutions for entrepreneurial activities. Government has taken a very proactive stand in providing all the required support to nurture innovation as well as entrepreneurship and off late India has emerged as a hub for global R&D activities and there is a huge market for our technology related service and products as well. But there are some inherent weakness in our whole system, first is as we know we Indians are very traditionally our tourists taking abilities and fear of failures which is becoming a deterrent to entrepreneurial activities. We find there are research savvy academicians only in top rung institutes. If you talk about lower rung institutes in state level, they are only confined to take classes and then go back that is the only role which they are playing. And like contributing toward active research area then bringing it towards the market is not happening in most of the institutions. Barely very handful of institutions are very active in research, commercialization. Maybe there are some inherent problems which we will discuss later, but this is a major bottleneck in our Indian innovation system or obviously the linkages which are required between academics and industry are also not proper. There is a time lag between the research commercialization I think my friend from CSIR lab will appreciate that whatever pool of technologies they are having very few reach the marketplace and this is obvious in most of the areas. We need to sensitize people about the support avenues available from various sources. There is always lack of awareness about what kind of schemes, what kind of information which can be tapped for bringing the innovations to the market. Then we need to do a lot in creating awareness about the intellectual property. How to protect the innovation and how to manage the IPRs. This is also a very grey area in our whole system. Then we do not have right experts who can evaluate the, because all innovations cannot be converted into a commercialized product or service. We need a pool of people who can clearly and critically evaluate in terms of business potential of that particular innovation. Then in India we do not have an organized ecosystem which can take forward innovation through various stages and bring to the marketplace. So these are the various weaknesses where we have to strengthen so that being in the hub of economic activity, the opportunities are a multi-fold in India now. These are the sunrise sectors in biotech, wireless information, healthcare, textiles, components. We have a ability to create global companies and as I told because of our NRIs and there are some, even students in IMs are not, about 5-10% are not opting for campus placements. So there is a positive trend and shift towards taking entrepreneurship as a viable career option and even institutes have actually altered their placement policies. They are given free hand to work and on their ideas or the company for a while and suppose they do not succeed, they can come back for the campus placement. And this is, I think almost all the institutes should offer this policy so that they are given flexibility in actually testing their ideas. Actually, because of India being a global hub of R&D related activities, we are now having access to various technologies in multiple areas. The innovative financing mechanisms as my friend told, Sunita told about the Angel Network, VC, lot of VC funding, both from the public sector as well as the private investors are coming in a big way, but still this area also needs to be, people need to be exposed about this because VCs are having funds but they say they do not get right kind of ideas where they can invest and off-lit we have seen that India is moving beyond supplier of low cost services to higher value products. What are the challenges in our system, the biggest being the how can we transform the mindset of Indian academicians, our innovators and the society where they take entrepreneurship in a positive way. As you told about, Sunita was telling about the students experience, how the family is very apprehensive if someone embarks into the area of entrepreneurship because taking a secured job, vis-a-vis entering into entrepreneurship is very challenging. And I think there should be support systems which actually encourages and motivates persons. These are the obvious rapid changes in technology and shorter product life cycle. We have to be very, actually India is not bringing good products in the market. So, we have to adapt ourselves to the changing global market dynamics. We should we have to have organized ecosystem for innovation and most important is we have to build up the right capacities to take the innovation forward. See as far as our growth and progress contains a clear distinction between the urban and rural. Until unless we focus also on the rural growth and development prospects, we are not able to bridge the urban rural divide. So, that is also very much required that innovation value change should percolate down to the bottom of the pyramid and it should also reach the masses. There are couple of institutions like Gyan and Srishti who are doing a lot to bring the local you can say knowledge pool to the market like in the traditional sector. This is a brief organization of our DST and there are four areas which our department focuses. First is science and research development. This is a CRC. Second is technology development. Third is international division and fourth where we interface with the society and this is any B is the division which I represent within the DST and this is I am talking about the scientific groups within the DST. Then there are about 17 autonomous institutions prominent being Bose Institute in Calcutta, then TIFEC in Delhi, then we have Iqrisat in Hyderabad and Shri Chitrath Terminal Institute of Medical Sciences in Trivandrum. We also have an autonomous institution like Technology Development Board which provides soft loan to various companies for importing technologies, adaptation, etc. We have a scientific services division like Survey of India which is in fact more than 300 years old institution one of the oldest and this is a national Atlas mapping organization. This our board was constructed way back in 1982 where entrepreneurship was not much in scene. So you can say that we were slightly ahead of our time. We had then clear objective of promoting and developing entrepreneurs to use of S&T. These are some of the schemes which we operate starting with the institutional mechanisms like EDC. EDC is mainly to inculcate the spirit of entrepreneurship among the students and the faculty within an academic institute funding of about 20 lakhs or so. Is it so? It varies but like on an average it is about 80 to 100 lakhs for a period of 5 years or so. Then we have S&T entrepreneurship development projects. These are targeted in revitalizing the rural based micro enterprises and this works in close collaboration with NGOs at rural level. Then we have S&T entrepreneurship path. This scheme was initiated also in 1984. At that time our target was to convert job seekers to job generators which has not changed to convert knowledge into wealth through technology business incubators. Then we have structure training programs as we know the mindset, the sensitization plays a very important role in the entrepreneurship area. We have camps, we have entrepreneurship development programs where different modules are conducted. Faculty development programs and skill development programs are a part. Skill is for like 10th class students where they are given structured about 1 or 2, 3 months duration training in various vocational areas. Now from this year all these programs are not directly done by us. We have outsources to S&T entrepreneurship development institute of India, Ahmedabad. So actually they will be coordinating all these applications, they will invite applications, they will screen the applications and we will be having a role in type of selecting the institutions. Earlier this was done at our level only. We have this website www.techno-priner.net which is a very comprehensive one covering various aspects of entrepreneurship and I think I will invite everyone to go through and visit it. We have an e-magazine science tech entrepreneur and our website is www.nsttp.com Now as I told most of our mechanisms are institutional based so we target how to integrate entrepreneurship within the academic community. As we know the profile of academic and entrepreneurs, academician and entrepreneurs are entirely different. We need a completely different skill set for both of them. Now here we are combining both of them. So there is a sometimes conflict of interest also. Because academic system as such places more emphasis on publication, academic stage but often there is a change in the perception within the academic community. Say about a decade ago people were very uncomfortable with students, faculty, working utilizing institutes facility starting their own company because it is directly going to benefit a particular set of people who are involved. So there was a professional jealousy within the institute if someone was willing to start their own using the institutes facility. But couple of institutes were very dynamic, very proactive like IIT, Kharagpur was the first one where they allowed, they made a policy change and they allowed spin off companies out of faculty. And faculty were allowed to take classes and be a part of a company on the board of directors. So such kind of you can say changes are required in academic community. And it is changing but slowly. Why do we need technology business incubation? Because innovation and entrepreneurship are always buzzwords. But now after incubation in most of the academic community and that this is also being integrated in the academic community we feel that most of if we are targeting academic institution academic institutions are the seed beds of new knowledge and technology as well as main resource for the raw new talent. Now when these students who do not have any formal background about starting a company they are not coming from the family-owned concerns. They need to be hand-holded, mentored and provide a hassle-free environment particularly when they are in a technology or knowledge-related company because from the very nature it is presumed to be high-risk area. One of the other factor is we want to have reduce the time-length between the commercialization of the R&D outputs. Then since because mentoring and lot of services oriented packages provided within the incubator to start-ups hand-holding is done the prospects are improved for the start-ups it has according to some studies. Any company within the incubator vis-a-vis the outside the chances of survival are about 30% in a within the incubator otherwise rest is about 30% outside the incubator. Then there is emphasis on quality, environment standards, IPA and other issues which can be more packaged within an incubator. These are the actually benefits of technology business incubators from the government's perspective it is the economic development, there are new jobs, new taxes there are social benefits because it actually revitalizes the local economy there are new enterprises coming up R&D community it is obvious technology commercialization is much faster they have more interaction there is a source of additional income for tenant companies it is access to resources reduce risk time to market they get they have improved business skills for corporate sector it is a technology acquisition they can have investment choices and in most of the good companies a part of their corporate social responsibility wherein they are investing into incubators. What we have done we have actually partnered with institution of excellence who are generators of new ideas and technologies through the mechanisms of steps TBI wherein we have applied high end support network and this has led to business incubators and successful start-ups. See it depends upon the type of sponsor which is the lead sponsor and what are the desired goals out of it. If we have incubator within our technical university the goals will be to promote innovation encourage and motivate faculty for starting their companies if it is a research institute like couple of our incubators R&D CSIR labs then the goal will be for speeding up the research commercialization. If it is a then it depends upon the private sector obviously they are not for the profit but they will be making a profit more patents they will be having equity in clients so their motive will be slightly different. If it is a VC based they want a winning enterprise and high portfolio returns. So actually when we are estimation incubator it is a sort of solving a jigsaw puzzle the different you can say components are the team innovative finance, idea, policy mentors and the package of services which are a central tool of the incubator results when an ideal incubator is established is a where we combine all these pieces comes an ideal incubator. So these are the essential elements of a business incubator. When you talk about the ecosystem how to develop the right ecosystem for the business incubator it is a public policy that facilitates venture creation we have to provide the right business infrastructure finance is also very important and knowledge is obvious because our target group is academic institutions and medical institutions then as I told about the mindset the community involvement should be higher promote entrepreneurship and networking both nationally and internationally will give you both platforms to share and experience what is being done by the other countries. When we start up an incubator what we are actually wondering is that when you selected an in company ability of entrepreneurs is usually not known potential of the idea technologies also fairly not established demand of the market is also available availability of finance is not clear and what strength confidence and motivation within the team of the startup is also not known. So if we are what is the formula of success is combination of A plus which is success but is it is a big unknown. So it is a very challenging task when you set up an incubator this slide tells you about how we have progressed and what had been our journey in the Indian incubation program we started off in year 2000 after 15 years of running the step program we began with an international workshop to sensitize our Indian academics then we subsequently we conducted four regional workshop first was in IIT department of management then we also sensitized about 60 universities through collaborating with UGC we also organized workshop to sensitize CSIR scientists to take into techno entrepreneurship this was in collaboration with Harvard and MIT scientists we had two global forums on business incubation with infodev program of the world bank this infodev is particularly targeting ICTs at tool for development of regional development in the developing countries we have about 45 plus incubators as of now spread all over the country we focus on IT, biotechnology, design, business, new materials and as I told our primary target remains the academic and technical institutions as well as R and D institutions and we are trying out different models in terms of locations vary from urban to semi urban rural area even the models are different when you have the different thrust areas this is a geographical distribution as I told most many of our institutes are located in the southern part we started in 1980s we had four in number now we have reached a 45 in 2008 this I had already discussed most many of incubators are focusing on ICT related technologies this is a typical profile of our Indian incubator the cost varies from 4 to 5 crores our contribution is also to the tune of 50 to 70% at any point of time within incubator there are about 6 tenants tenancy period is close to 18 months to 3 years but average is 2 successful enterprises is 4 that means the survival rate is close to 70% what we are advocating of late is that in order to have a better accountability the TBI should be registered as a not-for-profit society or section 25 company and should enjoy a separate legal status from the institution it should not be run as another department within the academic institution because see the goals are different the ways of function is are different you should have a separate legal structure there are about 150 new products and innovations have come out through these incubators and 1100 new enterprises yielding about 7000 new jobs there was a report by planning commission titled as Technology Innovation Adventure Capital which clearly recommended the country should emphasize more on integrating entrepreneurship within the academic institutions and more TBI should be set up and they should be offered fiscal incentives to incubators as well as startups so as a result in the union budget 2000 announcement this was the excerpt from the budget speech which the FM had announced that in order to encourage innovation he has proposed to exempt from service tax all services provided by technology business incubators and similar fiscal concession to its incubators so incubators that means who are physically resident within the incubator because sometimes incubators also support incubation on virtual mode so only this concessions are applicable to startups who are physically resident within the incubator and this is as a result of this announcement in the finance bill this notification was issued for exempting service tax on all services provided by incubators exemption of service tax for incubators for 3 years whose turnover does not exist 50 lakhs and in incubators though having not for profit status are allowed to hold equity in the promoted companies and actually this is applicable at the moment only to our recognized incubators not other incubators there are couple of initiatives taken to enhance the effectiveness of the whole incubator program this is our seed support system actually what we find that startups is a major constraint where in the high risk and high growth area they are unable to garner financial support from conventional route so we came out with the seed support system as I told we have an institution like technology development board they have given funding of about 100 lakhs to 10 steps in incubators but from this financial year the scheme has been given to us and now we are funding the incubators on the seed support front with an enhanced funding norms the 100 lakhs has been double to 200 lakhs and we have this time shortlisted 6 additional set of incubators who will be availing the seed support to be in turn given to the deserving incubators and lot of flexibility has been built into this system that the support can be in the form of grant also partly grant partly soft loan partly as a deferred payment they can hold equity so but it is still what we find that incubators are not geared and equipped enough to manage this kind of fund so lot of capacities are required to be built at ground level so that they can really optimize the use of this initiative we are doing a lot in terms of building the capacity of incubators managers because we won't find lot many like poiny buds in our incubators so a lot of networking is going on we are inviting experts from other countries and extending all possible support to our incubator network so that they get exposed to the requirements how to run how to upgrade the incubators and how to maximize the outputs of the incubators we have part of various platforms and we give networking opportunities both nationally and internationally we have collaborated with series of multilateral and bilateral agencies with UNDP we have ongoing project mainly in vocational training area infodev program which is focusing on actually strengthening the incubators in developing countries about 5 of our incubators have got additional support from infodev program we have been holding couple of global forums with that support and now we are a part of donor we have contributed to the infodev donor program so we are a donor out of 8 countries this program has started with major contribution from Japan with EU we have actively interacted with UK business incubation program Swedish incubation, German and France UNDP also we are interacting we are a actually active collaborator with Thai network Harvard MIT until we have this incubation pioneer which is a business plan competition Intel and UC Berkeley we actually sponsor incubator managers and policy makers for this technology entrepreneurship education program two weeks program this are the two recent initiatives we have joined hands with Lockheed Martin and University of Texas for technology commercialization from all areas in India it need not focus only on academic institutions but on white cross sections within India we have bilateral cooperation with countries like Mauritius Cambodia Vietnam Philippines where in we have extended our support in setting up of incubator program actually the incubator helps in upgrading the intellectual infrastructure physical cultural infrastructure and financial infrastructure these are the various elements where in we can judge the business incubator performance faculty through education faculties are exposed and they are actually they undergo trainers trainer program once they undergo their job is to spread the spirit of entrepreneurship within the colleges which are in proximity of the region they are then they become a part of a knowledge networks and they widen the horizon academic community through the help of incubator and entrepreneurship related mechanisms are able to have a wider reach within the community and within the region actually these are some of the benefits or we talk of what returns to the government or the country experts through investing in the business incubators see through the start-ups or the new company promotion government gets written in the form of taxes after this actually starts only after 5 to 7 years of its establishment we have new jobs and then actually whatever profits are generated in the start-ups or the companies are put back in form of new investment and then intern and the chain goes on so these all contributes to the overall impact within the region and within the nation now I will just be more specific about the institutions who are now willing to have an incubator in their campuses so this is a business I think was it covered in the last session so I may skip so these are the various actually we have within our website we have an application format as I told www.nstdb.com has a format which is developed by us so you can just go through but these are the some of the features which needs to be covered incubator business plan and I think I need not to go into detail in last 2 days while it is true that this administrative mission is important all of it is available on that website the complete details are available in fact you can find more details around this this is actually the way in which you apply for setting up an incubator apply for a grant from the you can set up an incubator independently but if you want DST to support it these are the processes these processes will just tell you what information is sought but the website will not tell you what you should write that is more important you have to convince DST that what you write actually gels well with the philosophy of the initiative and that you are indeed entitled for that support what I would suggest is that we have discussed the sign setup pointy you have shared all the documentation that sign has I will draw your attention to an earlier observation which I had made on day 1 because we had fortunately some lead on experimenting with the incubator the proposals that we had made originally turned out to be very likeable proposal by the department and in fact other institutions were requested to sort of redo their proposals on those lines now there are 2 things that you have to do one is to actually imbibe the philosophy and principle of doing that really you have to be willing to do that in real life and you have to actually do part of it ahead of time for example setting up of a section 25 company or setting up of a society is something you cannot say I will do after I get the grant that is nonsense it happened in the earlier years when there was no such structure known but now that you know this structure see you have to show not just your willingness on paper but on actual ground that you are committed to doing and let me specifically state you if you are setting the incubator because you are getting some grant there is the biggest nonsense and you are setting the incubator because you want to encourage entrepreneurship and business incubation incidentally then you are looking for some finance this is a generic statement I would like to make I want to introduce a new program academically I want to do something new I am not doing it because somebody is going to pay me money for doing it I am going to do it because I believe that it must be done I must be willing to start doing it at my own cost whatever little I can do only when I establish to the rest of the world that look I am going to do it any which way if you please help then if our direction of activity appears to be in sync with the direction that is sought not only this department everybody else will come forward to help I am sorry to give this dietary but I have seen this happening at many places I also endorse completely endorse your viewpoint because until less their mindset changes we cannot expect success because why we advocate that sign is the best model because they have taken streamlined the whole process so what I suggest is having seen the sign process take that documentation back home discuss with your own colleagues your own administrators see how you can extend that or modify that to be actually put in place in your own institution and get an endorsement from the management at the highest level from your institution that whether we get funding or not we are committed to follow this modified set of activities as learned most of those then can be put on paper describing this is what we plan to do this is what we have already done what happens in India many times is that once a funding proposal is there I fill up the form saying yes I will do this I will do this I will do this nowhere in the form you will see I have done it already I think that's a very very important discussion you yourself put yourself in the position of the people who evaluate your forms how would you like out of 20 proposals two proposals we say not we will do it we will do it but these three things we have done these two things we have tried to do these additional things we want to I think that is the best way of requesting I am sorry to button but I thought it was very valid and so all these details which are there on the form they will only tell you what information is sought for of course you must ensure that not a single piece of information is missing because if it is missing the setup cannot take cognizance of that application must be full into but what I would like you to do is take every aspect of this and say that like take for example land building utilities furnishing this is the job of the host institution now you cannot say that if you give me a grant I will figure out where to locate this your institution should be able to say this is the building this is the room where we will start will expand it over the period of time we will get some funding from somewhere else but we have already identified a location we have already identified a leader who will lead this mission champion is very important champion local champion we have already identified a group which will otherwise we have already identified from amongst the local entrepreneurs some people who will come and advise who will be able to set up a mentoring network we have done all that now we want to extend it further therefore we want you I would submit that that is a far better way of getting support than just filling up a form and expecting money when full money is good but generally its value is precious if that windfall is not backed up by our own local commitment and this is my submission. At a new institution who goes in for establishment of TBI lot of time and effort should go in actually building a sound proposal if we approve it right away within a period of 3 months they have lot of treating troubles and lot of time is wasted in mobilizing various resources convincing so it is better you invest your time in actually doing the background work then come up with a proposal so that you can start right away without wasting much of a time rather than you wait for the clearances from the government department the proposal is recommended you wait for the sanction then only things will be initiated but as rightly pointed by professor Fatak the institutionals have to be entrepreneur on their way so they have to start because until unless they are convinced about this is the need of our entrepreneurship is required within the to be within the community academic community and the management especially from the private there are some delays but the private can be fast in decision making and the person who actually initiates should be able to convince so these are the various these are the funding actually distribution as far as the TBI costing is concerned land building utilities and furnishing is to be borne by the host institution wherein we supplement and provide funds to equip themselves with the state of the art facilities in the chosen technological areas we also fund the expenditure for initial 5 years till they normally attain the operational self-sufficiency and these are the sources of revenue and our funding is only on deficit mode they have to start earning from the day one which will gradually increase so that they attain the self-sufficiency so equity is the model which actually if you have one mega company this will take care of about most of your expenditure so but lot of ground capabilities needs to be developed in this area what do we look in a proposal when we recommend it for a TBI this is a strong commitment willingness of the host institution we also liken to what is the branding of the host institution within the region in terms of facilities the faculty profile what is the level of R and D work being carried out what is the industrial potential what kind of linkages do they have with the industry what the technological area which they have identified what kind of market potential it has got and then we mainly focus on the business plan of the step TBI and how much how long do they need our support these are the steps proposal as I told it is available in our website which is considered by a national level expert committee then we have second committee which approves the budget we start processing final approval then is the execution of MOU but our experience shows between step number 1 to 4 usually takes about sometimes 6 months and longest has been 2 years because there were some say because of that legal thing because if it is you go over the university system even in the CSIR thing they had a lot of problems to get the approval from the headquarters so getting final not from the headquarters itself is a long drawn process then MOU then decision of HCI now we are advocating it has if it is done before hand before applying that it solves most of our problem and time delays are not there because this itself is an indication how committed the institution is we then issue of sanction order subsequent disbursement now if you talk the whole chain of events from 1 to 8 issue of sanction order as a rule was longest for 2 years and minimum has been 6 months we are not able to reduce that and we are actually strongly willing if we can bring it down to 3 months the incubator performance just based on the operational efficacy of the incubation process because the incubation process will partly vary if you are focusing on actually incubating the idea vis-a-vis incubating the technology in some of the labs who are doing because if you are incubating the technology you have to upscale the technology you have to match with the right kind of entrepreneur who can take up the technology so the process vary with the incubating an entrepreneur who is having his original idea testing it making a business plan raising funds so these are different processes involved what has been the profile of successful enterprises and impact created within the region and the financial health of TBI and TBI should not be aloof from the local community should be a visible and known entity in the region for stimulating new enterprises sometimes what we have done we have even seen incubator is existing within the campus and most of the faculties are not aware that such kind of mechanism exists so lot of I think incubation progress process must have been dealt in detail by the pointy so this should be devised very carefully and implemented also so what our experience shows that why incubators fail to form that sometimes they are not maybe in proper feasibility study business plan lack of proper governments there is a weak entrepreneurial culture within the institute or the region in appropriate infrastructure I will give a least importance then what we find that most of the case it is a one-man show in an incubator the incubator manager is good the moment he leaves sometimes it collapses so it should not be the case the linkages and ineducate government policies so building a successful incubator program is a as I saw a lot of effort has to be gone homework hard work smart work team work and network so it is not only some but some of all these which leads to a successful incubation program thanks