1. Innovation Clusters National Innovation Council

2. Clusters in India MSMEs represent 45% of manufactured output and 40% of exports Engines for new job creation in both organized and unorganized sectors Need support to innovate, grow and stay relevant in globalization world today Estimated 6,000 MSME clusters in the country

3. Challenges facing MSMEs MSME’s Low Access to Credit Lack of Skilled Manpower Inadequate Infrastructure Low Access to national and global markets Low Levels of Innovation and little R&D High Cost of Raw Materials

4. Our Approach - Innovation Clusters Organize MSMEs in cluster to act as one – create association Link them to national resources like R&D labs Connect to local Universities Connect to banks & financiers Connect to Govt. programs & schemes Create local innovation ecosystem as a platform for development Established as a PPP model from Day-1 with contributions from all players Cluster Association R&D Tech Skills Mentors Industry Knowledge Government Programs Financing

5. Local Association Takes Responsibility Brings economies of scale and collective bargaining power into play Represents interests of all members of cluster Create the Cluster Innovation Center (CIC) CIC will spearhead collaborative / partnering initiatives CIC

6. Pilot - Industry Clusters Agartala, Tripura Bamboo Moradabad, Uttar Pradesh Brassware Faridabad, Haryana Auto Components Ernakulam, Kerala Furniture Krishnagiri, Tamilnadu Agriculture Thrissur, Kerala Ayurveda Ahmedabad, Gujarat Life Sciences 1,000,000 people employed 85,000 companies $4 Billion Revenue 4 corners of India Handicraft to High-Tech Low-skilled to skilled

7. Ecosystem Building Total of 39 partners joined hands Central and State Government bodies National and Regional R&D institutions National and Local Industry/Professional bodies Financial institutions Local educational institutions 9 partners 2 partners 4 partners 7 partners 17 partners

8. Innovations in the past 1 year 6-8 new products 10-12 new processes 2 new centers As examples National Innovation Council Confidential

9. Efficient Coal Furnace Brassware Cluster BeforeAfter ItemPre-innovationPost-innovation (a)Brass melt (in kgs)8096 (b)Coal consumption (in kgs)2520 (c)Gross Revenue (in Rs.): (a) * 252,0002,400 (d)Cost of coal (in Rs.): (b) * 28700560 (e)Estimated loss of brass during melting600 (f)Average daily income per furnace: (c) – (d) – (e)7001,240 Field Estimations by CSIR-NML

10. Improved Product Quality Brassware Cluster BeforeAfter 50x more storage time (1/2 weeks to 2years) 25-30% reduction in cost of lacquer Enhanced product quality and better market acceptability Were possible because of the After 3months Uncoated Coated

11. Moradabad Ecosystem Created Cluster Association R&D Tech Skills Mentors Industry Knowledge Government Programs Financing CIC MCIDS CSIR-NML CSIR-CECRI CSIR ILFS FICCIMHSC NInC DSIR MCIDS CIC Local Innovation Ecosystem Plan Actual Ecosystem created at Brassware Cluster

12. Our Process Innovation Needs AssessmentPartner EngagementPrototype Co-developmentMarket ValidationCommercialization Step 1 Step 2 Step 4 Step 3 Step 5

13. Innovation-Needs Assessment Cluster identifies – Market demand, known gaps, market opportunities and market trends Cluster prioritizes – Areas with potential for max impact – Low hanging fruit – Willingness of cluster to invest – Needs cluster to partner – Inclusive in nature: M -> S -> M Es 4-6 weeks

14. Partner Engagement Talk to multiple potential partners Agree on activities and deliverables Create action plans Scope out resources needed Enter into formal PPP partnerships for collaboration 4-8 weeks

15. Prototype Co-development Partner visits cluster, gathers specs and creates prototype Cluster members visit partner facility if needed, validate, provide feedback and help refine the prototype Partner refines prototype Cluster members validate the prototype at their locations and provide feedback Partner creates final version Partner and cluster co-invest resources needed 12-24 weeks

16. Market Validation Final prototype embedded in the cluster for a few months Cluster conducts demonstrations, road shows, etc. Feedback from potential customers Confirm acceptability Cluster invests in the validation 8-12 weeks

17. Commercialization Open invitation to cluster members Interested parties create business proposals and vetted by partner, cluster Best party recommended by cluster Transfer from or formal collaboration with partner established Innovation made commercially available to the cluster 8-12 weeks

18. Value from Mango Waste Agriculture Cluster Before After ItemCalorific Value Cost per tonne ConsumptionExpenditure/day Selling price per tonne Firewood2400 kcalRs 5,00010 tonnesRs 50,000- Briquettes3800-4400 kcalRs 1,000*6 tonnesRs 6,000Rs 4,000-5,000 Savings Rs 4,000 Rs 44,000 Estimated by Cluster

19. Storage & Export of Fresh Fruit Agriculture Cluster Before After Increase shelf life of fresh fruit from 7 days to 35 days Open new markets : EU, North America and Japan Estimated by CSIR-CFTRI

20. Product Diversification Agriculture Cluster Before After Additional income of around Rs. 150/- per day for women at SHGs Potential reduction of 50% in processed pulp inventory Estimated by Cluster

21. Improved Wood Seasoning Furniture Cluster BeforeAfter ItemCost at Micro Unit in RsCost at CFC in Rs Raw material910805 Seasoning (optional)155115.5 Labour351145 Electricity Manual cutting40* Polishing Materials**198.75265*** Packing32.3426.60 Total Cost of Production with seasoning1,647.491,397.10 Selling Price2,000.002,280.00 Estimated by Cluster

22. Contemporary & New Designs Furniture Cluster BeforeAfter Expand Domestic and Export Market

23. Semi-mechanization Bamboo Cluster Before After Estimated 70% reduction in wastage Estimated increase of artisan income from Rs. 150 to Rs. 250 Estimated 50% increase in yield from same resources Estimated by TBM

24. Mechanization of Stick Making Bamboo Cluster Before Under Development Low-cost automation of Agarbatti manufacturing Potential 2-3x increase in artisan income Estimated by NIT-A

25. Industry-University Linkages Apply academic expertise to industry (SME) problems Industry focused projects and innovation Auto Component Cluster

26. Standardized Production Processes Ayurveda Cluster Quality control (Anti-Diabetes formulation) and requisite certifications Potential access to export market Before After

27. Commercialization of R&D for Entrepreneurs Biotech & Pharma Cluster Transfer of technology from public R&D labs Handholding and incubation of entrepreneurs

28. How can you engage Central Ministries and State Governments being asked to replicate and adapt the model in more clusters NInC will work with interested parties and provide – Knowledge, training and handholding support – Manuals and workbooks Visit: www.innovationcluster.gov.inwww.innovationcluster.gov.in National Innovation Council Confidential