India recently ranked 66th in ‘The Global Innovation Index 2013’. India was behind economies like Brazil. The apparent reason for this seems to be a lack of resources devoted to Research and Development. Indian companies are risk averse by their nature and believe in traditional models of business rather than adopting new ones. When an Indian employee represents his idea to the management, leaders display a passive response. Companies in the other countries show a warm welcome to ideas of employees and in return, reward them. This makes employee loyal to the firm and he keeps practicing ideas in hope to get more perks in the nearby future. Following are some more reasons for Indian companies missing innovation link in their product launches.
4. Indian Economy still lacks Knowledge Drive
Most developed countries stick to the concept of ‘knowledge-driven economy’. Patent wars between Samsung and Apple were fought on the basis of ‘ideas’, which they claim to be patented themselves first. Fast jury proceedings helps to get due award/benefit for real innovators and punish violators under the patent infringement cases i.e. by imposing huge fines on offenders. Laws are very strict and updated. All these steps boost innovative and entrepreneurial spirits of an individual. The sense of protectionism against any unlawful activity helps to spur business ideas and economic growth of country.
3. Presence of Innovation Ecosystem Outside India
In order to propel ideas, an individual needs a special environment suited to his needs. This problem is addressed by establishing Innovation Ecosystems specifically focused on certain key areas and some stock markets closely designed for listing techno-driven companies. An entrepreneurial avalanche is properly unleashed only when it gets right mentoring in the early/nuance stages. Silicon Valley in California and Bengaluru in India are best examples of innovation capsules in a country.
2. Accelerator Funding Model Outside India
1. Lack of Government Support in India
Indian laws and regulations are strict, but their implementation is not. It can take from months, several years to some decades to solve an issue in judiciary. Most companies due to this reason don’t want to indulge in ‘Patent Wars’ and thus happy in staying away from innovation. Policies in India hold an anti business sentiment, placing more and more hurdles in a company’s growth. Be it the case of Vodafone, the MoEF in project clearances recently or an initiative of opening a startup.
Thinking of starting a new business in India? Think again! It can take up to 64 days and completing 13 procedures in total to have a startup, here. Government is providing too little financial support for assisting and accelerating growth of small companies in its annual budget.