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Innovation Clusters
        Pilot Update & Scale Up Plan

                                  May 30th, 2012




Office of Adviser to the Prime Minister on Public Information Infrastructure and Innovations
Creating Innovation Ecosystems
• MSME Industry Clusters

• Innovation requires
  collaboration & partnering

• Getting Cluster to act as one
  entity to attract interest &
  economies of scale

• Facilitating growth of
  industry via new products,
  processes, common centres,
  startups creation
             Office of Adviser to the Prime Minister on Public Information Infrastructure and Innovations
6 Industry Pilots

    Cluster             Innovations in                                Cluster                   Innovations in
Krishnagiri             Agriculture                           Agartala                         Handicrafts
(Food Processing)                                             (Bamboo)


Thrissur                Health                                Ernakulam                        Forest-based
(Ayurveda)                                                    (Furniture)                      Products

Moradabad               Handicrafts                           Faridabad         Automobile
(Brassware)                                                   (Auto Components)


                              9 Lakh People Employed
                              83,000 MSME companies
                              11,000 Crore Turnover
                              Started pilots between Dec 2011-May 2012
              Office of Adviser to the Prime Minister on Public Information Infrastructure and Innovations
2 University Pilots

                   Cluster                                        Innovations in

     Delhi University                              Education
                                                   Mathematics and IT


     MS University Vadodara                        Microbiology and Biotechnology




                   4 Lakh Students
                   10,000 Teachers
                   80 Colleges, 110 Departments
                   Started Pilots between March 2012-May 2012



       Office of Adviser to the Prime Minister on Public Information Infrastructure and Innovations
Pilot Approach = CIC + Partnerships
• Cluster Innovation Centre: A
  small group of people                                 Total of 39 partners in Ecosystem
  developing the ecosystem as an
  arm of the cluster association
                                                                                                  17 partners
    o Connector: Networking
      and sharing hub

    o Innovator: Manage                         9 partners                        NInC                       7 partners
      innovation initiatives
      within/for the cluster

    o Channel: Facilitate in-                             2 partners                          4 partners
      bound and out-bound
      innovation activities

              Office of Adviser to the Prime Minister on Public Information Infrastructure and Innovations
Industry Pilot Results/Expected

    Cluster               Innovations                                 Cluster                     Innovations
Krishnagiri             4 Products                            Agartala                         1 Product
(Food Processing)       2 Processes                           (Bamboo)                         2 Processes


Thrissur                2 Processes                           Ernakulam                        1 Center
(Ayurveda)                                                    (Furniture)                      1 Process

Moradabad               2 Products                            Faridabad         2 Centers
(Brassware)             1 Process                             (Auto Components)


                                              7 new products
                                              8 new processes
                                               3 new centers

              Office of Adviser to the Prime Minister on Public Information Infrastructure and Innovations
Handling/Storage of fresh fruit
                                                                                           Food Processing Cluster




                                   BY AIR                      BY SEA
CSIR – CFTRI Process Innovation Technique testing show :
- 5x increase in storage life (7 days to 35 days)
- 5x reduction of freight charges
- Opens cluster to new export markets
- Benefits to 25,000 farmers & families


            Office of Adviser to the Prime Minister on Public Information Infrastructure and Innovations
New Lacquer for Brassware Polish
                                                                                                    Brassware Cluster
       Outdoor Exposure test                                   “Flower of Sulfur Test” (ASTM B 809)

                                                                        0 hours




                                                                                                    72 hours
                                                                                                               Uncoated
                                                                              Coated




CSIR – NML Product Innovation tests show:
- 2-4x less time to dry (reduced from 30-60min to 15min). No baking oven needed.
- 50x more storage time for lacquer formulation (1-2weeks to 2 years)
- Low gloss (natural metal) finish rather than high gloss finish (plastic-like)
- Can be applied as dip, brush and spray coating compared versus spray only

             Office of Adviser to the Prime Minister on Public Information Infrastructure and Innovations
End-to-End Entrepreneur Support
                                                                                          Auto Components Cluster




Entrepreneurship Facilitation Centre

-Broad support from information, CIC, networking, credit identification, common
design tools, lean manufacturing, material sourcing, mentoring and handholding
through hotline / email
-Tod-Fod-Jod center at Manav Rachna Univ. to encourage students to provide
innovative solutions to industry problems entrepreneurs trying to solve
-Access to design and rapid-prototyping facilities
             Office of Adviser to the Prime Minister on Public Information Infrastructure and Innovations
Innovation Ecosystem - Example

                                                                        Food Processing Cluster
                                                                        @ Krishnagiri

                                                                        11 partners




     Office of Adviser to the Prime Minister on Public Information Infrastructure and Innovations
University Pilot Results / Expected

                    Cluster                                      Innovations
      Delhi University                                1 Degree program
                                                      3 Industry collaborations

      MS University Vadodara                          1 Lab
                                                      1 Incubator


                               1 new degree program
                                      1 new lab
                              3 industry collaborations
                                   1 new incubator



      Office of Adviser to the Prime Minister on Public Information Infrastructure and Innovations
Pilot Challenges
   Cluster Organizational Readiness
       Representation readiness poles apart e.g. Moradabad vs. Faridabad
   Innovation Program Execution
       Funding disbursements & procedures make difficult to execute on-time
           Pilots will end Sept-Nov timeframe from July target
       Lack of Ministry support/interest
           No “innovation” schemes, field-level unable to grasp essence of program
       Our bandwidth to engage State-level participants is low
       Skills at striking & maintaining win-win partnerships is tough in field
   Business model and sustainability
       CIC model too early to assess viability
   University clusters
       Although small sample size … unable to ID a “pull” effect, requires significant
        financing and hand-holding reviews

                 Office of Adviser to the Prime Minister on Public Information Infrastructure and Innovations
Scale Up Plan
Roadmap Proposed
                                                                        2013-14

                                                                       300+
                                                                      Clusters
                                       2012-13
                                                                      (Scale Up II)

                                       100
                                     Clusters
                                     (Scale Up I)


      2011-12

       8
    Clusters
    (Pilot Phase)                    Focus




      Office of Adviser to the Prime Minister on Public Information Infrastructure and Innovations
Scale Up (Part 1) in 2012
Industry Clusters
 Expand existing pilot strategy given encouraging signs

       CSIR as lead partner to develop 60-70 innovation clusters
       Effort has begun, note established on approach (see handout), cluster
        engagement & funding gaps to be determined, agreed to hire 2 BD personnel
        for 6 month immersion program at NInC
       Post feedback the note will be sent for NInC approval via email
   Start another Ministry effort
       Min. of Textiles as lead partner has suggested 20-25 clusters collaboration
       However determined these clusters are largely unorganized (and tough to
        organize)
   Start Sector-driven lead partner via professional sector organizations
       Target 3-4 clusters


               Office of Adviser to the Prime Minister on Public Information Infrastructure and Innovations
Scale Up (Part 1) in 2012
Industry Clusters (cont’d)
 Start State-driven lead partner via State Innovation Councils

       Target 1-3 states
 NInC to complete program manual, case studies, best practices
  and act as expert/facilitator with each lead partner. Can this
  work? With existing staff BW @ NInC?
University Clusters
 Begin a sub-group at NInC to figure out next steps




              Office of Adviser to the Prime Minister on Public Information Infrastructure and Innovations
Scale Up (Part II)
   High level proposal on scale-up strategy being developed
    (initial draft – see handout)
   Synergize with Planning Commission, NInC learnings and other
    Government agencies
       National Innovation Cluster Policy and implementation through new or
        existing Agency
   Accept that “policy” should occur after “incubation in the field”
    to increase our success rates of programs
       Especially true for approaches that require cross-functional, cross-
        ministry effort (e.g. Backbone org for manufacturing)




              Office of Adviser to the Prime Minister on Public Information Infrastructure and Innovations

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Innovation Clusters - Pilot Update & Scale Up Plan

  • 1. Innovation Clusters Pilot Update & Scale Up Plan May 30th, 2012 Office of Adviser to the Prime Minister on Public Information Infrastructure and Innovations
  • 2. Creating Innovation Ecosystems • MSME Industry Clusters • Innovation requires collaboration & partnering • Getting Cluster to act as one entity to attract interest & economies of scale • Facilitating growth of industry via new products, processes, common centres, startups creation Office of Adviser to the Prime Minister on Public Information Infrastructure and Innovations
  • 3. 6 Industry Pilots Cluster Innovations in Cluster Innovations in Krishnagiri Agriculture Agartala Handicrafts (Food Processing) (Bamboo) Thrissur Health Ernakulam Forest-based (Ayurveda) (Furniture) Products Moradabad Handicrafts Faridabad Automobile (Brassware) (Auto Components) 9 Lakh People Employed 83,000 MSME companies 11,000 Crore Turnover Started pilots between Dec 2011-May 2012 Office of Adviser to the Prime Minister on Public Information Infrastructure and Innovations
  • 4. 2 University Pilots Cluster Innovations in Delhi University Education Mathematics and IT MS University Vadodara Microbiology and Biotechnology 4 Lakh Students 10,000 Teachers 80 Colleges, 110 Departments Started Pilots between March 2012-May 2012 Office of Adviser to the Prime Minister on Public Information Infrastructure and Innovations
  • 5. Pilot Approach = CIC + Partnerships • Cluster Innovation Centre: A small group of people Total of 39 partners in Ecosystem developing the ecosystem as an arm of the cluster association 17 partners o Connector: Networking and sharing hub o Innovator: Manage 9 partners NInC 7 partners innovation initiatives within/for the cluster o Channel: Facilitate in- 2 partners 4 partners bound and out-bound innovation activities Office of Adviser to the Prime Minister on Public Information Infrastructure and Innovations
  • 6. Industry Pilot Results/Expected Cluster Innovations Cluster Innovations Krishnagiri 4 Products Agartala 1 Product (Food Processing) 2 Processes (Bamboo) 2 Processes Thrissur 2 Processes Ernakulam 1 Center (Ayurveda) (Furniture) 1 Process Moradabad 2 Products Faridabad 2 Centers (Brassware) 1 Process (Auto Components) 7 new products 8 new processes 3 new centers Office of Adviser to the Prime Minister on Public Information Infrastructure and Innovations
  • 7. Handling/Storage of fresh fruit Food Processing Cluster BY AIR BY SEA CSIR – CFTRI Process Innovation Technique testing show : - 5x increase in storage life (7 days to 35 days) - 5x reduction of freight charges - Opens cluster to new export markets - Benefits to 25,000 farmers & families Office of Adviser to the Prime Minister on Public Information Infrastructure and Innovations
  • 8. New Lacquer for Brassware Polish Brassware Cluster Outdoor Exposure test “Flower of Sulfur Test” (ASTM B 809) 0 hours 72 hours Uncoated Coated CSIR – NML Product Innovation tests show: - 2-4x less time to dry (reduced from 30-60min to 15min). No baking oven needed. - 50x more storage time for lacquer formulation (1-2weeks to 2 years) - Low gloss (natural metal) finish rather than high gloss finish (plastic-like) - Can be applied as dip, brush and spray coating compared versus spray only Office of Adviser to the Prime Minister on Public Information Infrastructure and Innovations
  • 9. End-to-End Entrepreneur Support Auto Components Cluster Entrepreneurship Facilitation Centre -Broad support from information, CIC, networking, credit identification, common design tools, lean manufacturing, material sourcing, mentoring and handholding through hotline / email -Tod-Fod-Jod center at Manav Rachna Univ. to encourage students to provide innovative solutions to industry problems entrepreneurs trying to solve -Access to design and rapid-prototyping facilities Office of Adviser to the Prime Minister on Public Information Infrastructure and Innovations
  • 10. Innovation Ecosystem - Example Food Processing Cluster @ Krishnagiri 11 partners Office of Adviser to the Prime Minister on Public Information Infrastructure and Innovations
  • 11. University Pilot Results / Expected Cluster Innovations Delhi University 1 Degree program 3 Industry collaborations MS University Vadodara 1 Lab 1 Incubator 1 new degree program 1 new lab 3 industry collaborations 1 new incubator Office of Adviser to the Prime Minister on Public Information Infrastructure and Innovations
  • 12. Pilot Challenges  Cluster Organizational Readiness  Representation readiness poles apart e.g. Moradabad vs. Faridabad  Innovation Program Execution  Funding disbursements & procedures make difficult to execute on-time  Pilots will end Sept-Nov timeframe from July target  Lack of Ministry support/interest  No “innovation” schemes, field-level unable to grasp essence of program  Our bandwidth to engage State-level participants is low  Skills at striking & maintaining win-win partnerships is tough in field  Business model and sustainability  CIC model too early to assess viability  University clusters  Although small sample size … unable to ID a “pull” effect, requires significant financing and hand-holding reviews Office of Adviser to the Prime Minister on Public Information Infrastructure and Innovations
  • 14. Roadmap Proposed 2013-14 300+ Clusters 2012-13 (Scale Up II) 100 Clusters (Scale Up I) 2011-12 8 Clusters (Pilot Phase) Focus Office of Adviser to the Prime Minister on Public Information Infrastructure and Innovations
  • 15. Scale Up (Part 1) in 2012 Industry Clusters  Expand existing pilot strategy given encouraging signs  CSIR as lead partner to develop 60-70 innovation clusters  Effort has begun, note established on approach (see handout), cluster engagement & funding gaps to be determined, agreed to hire 2 BD personnel for 6 month immersion program at NInC  Post feedback the note will be sent for NInC approval via email  Start another Ministry effort  Min. of Textiles as lead partner has suggested 20-25 clusters collaboration  However determined these clusters are largely unorganized (and tough to organize)  Start Sector-driven lead partner via professional sector organizations  Target 3-4 clusters Office of Adviser to the Prime Minister on Public Information Infrastructure and Innovations
  • 16. Scale Up (Part 1) in 2012 Industry Clusters (cont’d)  Start State-driven lead partner via State Innovation Councils  Target 1-3 states  NInC to complete program manual, case studies, best practices and act as expert/facilitator with each lead partner. Can this work? With existing staff BW @ NInC? University Clusters  Begin a sub-group at NInC to figure out next steps Office of Adviser to the Prime Minister on Public Information Infrastructure and Innovations
  • 17. Scale Up (Part II)  High level proposal on scale-up strategy being developed (initial draft – see handout)  Synergize with Planning Commission, NInC learnings and other Government agencies  National Innovation Cluster Policy and implementation through new or existing Agency  Accept that “policy” should occur after “incubation in the field” to increase our success rates of programs  Especially true for approaches that require cross-functional, cross- ministry effort (e.g. Backbone org for manufacturing) Office of Adviser to the Prime Minister on Public Information Infrastructure and Innovations