The Ecosystem Imperative

Invention to Innovation Continuum

Invention Innovation

Basic Applied Proof of Early

Maturity Research Research Adoption Scalability
Concept
Stages

R R S F S F S F
Key
Constituents G F
G G A A V

R Research Lab G Government F Firm A Angel Fund S Start Up V Venture Fund

 Ecosystem Benchmarking
Ecosystem Influence of Key Constituents

Government Research Firms Risk Capital Industry/Standard

Institutions Agencies
Silicon Valley
Israel
Germany
Taiwan
Singapore
Cuba (Biotech)
India

Weak Influence Moderate Influence Strong Influence

Source: NASSCOM
 Ecosystem Benchmarking
• On one end of continuum are ecosystems dominated by one constituents, and are thus overly dependant on a
dominating stakeholder, e.g., principal stakeholder in Cuba bio-tech ecosystem is Cuban government.

• The other end of continuum represents a highly collaborative model in which all constituents play their roles
effectively e.g. Silicon Valley, Israel etc.

• Ecosystems can travel along this continuum e.g. both Israel and Taiwan started off as ecosystems with strong
governmental involvement and correspondingly weaker involvement of other constituents but have transitioned
into more mature ecosystem as other constituents have become more active and influence of the government
has relatively reduced to a more equal participation.

• A comparison of ecosystems based on impact of constituents highlights that Indian ecosystem is in a relatively
early stage. The Indian ecosystem is weakened by twin effects of insufficient participation (in terms of roles
being played) by different constituents and also weak or negligible interactions between them.
 Weaknesses of Indian Innovation Ecosystem
• Lack of frictionless movement along the ‘invention to innovation’ continuum

• While individual constituents have matured on several dimensions, they tend to operate in silos with minimal
interactions between constituents

• Insufficient mentoring and networking support for start-ups and entrepreneurs

• Lack of entrepreneurs / start-ups focused on IP development in emerging technologies

• Severe lack of funding at the seed / angel stage with Govt. grants being the mainstay source of angel funds.
Reduces risk appetite of entreprenurs

• Little appetite to adopt ‘Make in India’ technology innovations across firms and public sector

• No platforms for all ecosystem constituents to interact

• No market-place for innovation trading in India

• Lack of meaningful collaborations between user industry and research institutes