1. Deepak Maheshwari Director – Corporate Affairs Microsoft India

2. Roles of Government Industry Landscape: Era of Open Innovation Roles of Government Hot Issues Policy Issues – Enabling Choice Best Practice Examples

3. Government as Policy Maker: Encourage and enable innovation and competition Protect citizens & promote public welfare Develop local industry Maximize local economic benefits Address Market Failures Global citizen – respect for trade regs; key public welfare initiatives (child protection, digital inclusion) Government as Customer Maximize its buying power; do more with less Provide effective and efficient services Avoid vendor lock-in Backward compatibility, future expandability Security, reliability, interoperability Innovation, competition, CHOICE

4. Open Innovation: A Shift In Innovation Paradigms From Closed To Open (from Henry Chesbrough’s “Open Innovation: The New Imperative for Creating and Profiting From Technology”) No single company has the answers. Companies are working together to meet the needs of customers. The smart people in our field work for us If we discover it ourselves, we will get it to market first To profit from R&D, we must discover it, develop it, & ship it ourselves The company that gets an innovation to market first will win If we create the most & best ideas in the industry, we will win We should control our IP so that our competitors don’t profit from our ideas Open Innovation Not all the smart people work for us. We need to work with smart people inside & outside the company. We don’t have to originate the research to profit from it. External R&D can create significant value; internal R&D is needed to claim some portion of that value. Building a better business model is better than getting to market first. If we make the best use of internal & external ideas we will win. We should profit from others’ use of our IP & we should leverage others’ IP whenever it advances our own business model. Closed Innovation

5. Source: Ocean Tomo U.S. INTELLECTUAL PROPERTY is valued at $5.5 trillion, equal to 47% of its GDP and greater than the GDP of any other nation

6. Industry has historically relied on trade secrets and copyrights Increasing reliance on patents Today all commercial companies rely on these 3 forms of IP as incentives to innovate & enablers for business

7. Business Models Interoperability Proprietary & Open Source Standards Choice

8. Companies increasingly using government intervention as a way to compete procurement preferences for Open Source Software Technology mandates Standards as the only way to accomplish interop Exclusively selecting one standard Dilution of IP in the name of interoperability

9. Understand the technical landscape and market place State of the art Dynamic nature of hi-tech Business models Not an “either, or” but rather an “and” Focus on core competencies Identify key policy objectives Innovation, competition, choice Consumer protection Addressing market failure Respect rule of law

10. Technology-neutral policy framework do not artificially favor any particular business or licensing model over another Enabling Business Model Competition IPR : corner stone of open innovation Conducive Environment for Innovation Follow objective criteria rather than subjectively preferring one way over another Many Ways to Accomplish Interoperability Focus on enabling people interoperability: organizational, semantic, policy and addressing environmental issues (social, political, economic) People Interoperability is Critically Important

11. Unified Access Service License GSM CDMA as an additional choice Technology Neutral since 2003 No specific mandate for any standard for VoIP (earlier H.323 & SIP were the only choices, albeit duality) Proposed change from ‘Digital Signature’ to ‘Electronic Signature’ in IT Act amendments

12. UN: World Summit on the Information Society (WSIS) US Federal: Office of Management and Budget US States: Mass., CA, NY EU Directive on Public Procurement Law (Article 23) Asia-Pacific Economic Cooperation: Technology Choice Principles South Africa, Malaysia, Slovenia, Canada, New Zealand, Peru, UK International Chamber of Commerce Business Software Alliance (BSA)

13. “Innovation is the specific tool of entrepreneurs” - Peter Drucker Thank You! dmahesh@microsoft.com