1. Office of Adviser to the Prime Minister on Public Information Infrastructure and Innovations Innovation Clusters Pilot Update & Scale Up Plan May 30 th, 2012

2. 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

3. Office of Adviser to the Prime Minister on Public Information Infrastructure and Innovations 6 Industry Pilots ClusterInnovations in Krishnagiri (Food Processing) Agriculture Thrissur (Ayurveda) Health Moradabad (Brassware) Handicrafts ClusterInnovations in Agartala (Bamboo) Handicrafts Ernakulam (Furniture) Forest-based Products Faridabad (Auto Components) Automobile 9 Lakh People Employed 83,000 MSME companies 11,000 Crore Turnover Started pilots between Dec 2011-May 2012

4. Office of Adviser to the Prime Minister on Public Information Infrastructure and Innovations 2 University Pilots ClusterInnovations in Delhi UniversityEducation Mathematics and IT MS University VadodaraMicrobiology and Biotechnology 4 Lakh Students 10,000 Teachers 80 Colleges, 110 Departments Started Pilots between March 2012-May 2012

5. 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 developing the ecosystem as an arm of the cluster association o Connector: Networking and sharing hub o Innovator: Manage innovation initiatives within/for the cluster o Channel: Facilitate in- bound and out-bound innovation activities Total of 39 partners in Ecosystem 7 partners 17 partners 4 partners 9 partners 2 partners NInC

6. Office of Adviser to the Prime Minister on Public Information Infrastructure and Innovations Industry Pilot Results/Expected ClusterInnovations Krishnagiri (Food Processing) 4 Products 2 Processes Thrissur (Ayurveda) 2 Processes Moradabad (Brassware) 2 Products 1 Process ClusterInnovations Agartala (Bamboo) 1 Product 2 Processes Ernakulam (Furniture) 1 Center 1 Process Faridabad (Auto Components) 2 Centers 7 new products 8 new processes 3 new centers

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

8. Office of Adviser to the Prime Minister on Public Information Infrastructure and Innovations New Lacquer for Brassware Polish 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 Outdoor Exposure test “Flower of Sulfur Test” (ASTM B 809) 0 hours 72 hours Uncoated Coated Brassware Cluster

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

10. Office of Adviser to the Prime Minister on Public Information Infrastructure and Innovations Innovation Ecosystem - Example Food Processing Cluster @ Krishnagiri 11 partners

11. Office of Adviser to the Prime Minister on Public Information Infrastructure and Innovations University Pilot Results / Expected ClusterInnovations Delhi University1 Degree program 3 Industry collaborations MS University Vadodara1 Lab 1 Incubator 1 new degree program 1 new lab 3 industry collaborations 1 new incubator

12. 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

13. Scale Up Plan

14. Office of Adviser to the Prime Minister on Public Information Infrastructure and Innovations Roadmap Proposed 2012-13 100 Clusters (Scale Up I) 100 Clusters (Scale Up I) 2013-14 300+ Clusters (Scale Up II) 300+ Clusters (Scale Up II) 2011-12 8 Clusters (Pilot Phase) 8 Clusters (Pilot Phase) Focus

15. 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

16. 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

17. 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)