This document discusses innovation in the Indian context. It provides examples of grassroots innovations in India like Sulabh International, Sixth Sense technology, Sarvajal water ATMs, and the Jaipur foot. It discusses the need for innovation in India to drive growth and development. Key aspects of Indian innovation discussed include its bottom-up approach, focus on frugality and addressing local needs, and trends like reverse innovation. Government initiatives to promote innovation through bodies like the National Innovation Council are also summarized.

1. Innovation in Indian Context
Instructor : Dr. Sumati Varma Prepared by :
Paper : Economics for Managers, Sunaina Kain
Master of International Business, Suvdeep Bagui
Dept. of Commerce,
Delhi School of Economics, Trapti Singh
Delhi University. Utsav Agarwal

2. Index
• Introduction – Innovation
– Product & Process Innovations
– Degree of Innovation
– Global Innovation Index, India’s Rank
– Need for Innovation in India
• Examples of Innovations (India)
– Sulabh International
– Sixth Sense by Pranav Mistry
– Sarvajal
– Jaipur foot
– Chotukool
– Rural Jugaad and solutions to local problems
– GE India – ECG Machine
• Prof. Anil Gupta’s Journey (search for rural innovation)
• Role of Govt. in promoting Innovation
– National Innovation Council
– Govt. Acts
– Innovation Councils

3. Index Contd.
• Understanding “Indianness “of our Innovations
– Global Innovation Efficiency Index, India Rank 2, Foreign Leaders
– Bottom up Approach
– Contrast with Foreign Innovations
– Jugaad Innovation
– Frugal Innovation
– Innovations in Corporate India
– Trend : Reverse Innovation
• Key Observations
• Suggestions

4. INNOVATION
• Innovation-Development of new customer value through
solutions that meet new needs, unarticulated needs, or old
customer and market needs in new ways.
• Accomplished through different or more effective products,
processes, services, technologies, or ideas.

5. Product and Process Innovation
Process Innovation
• Moderate alteration of an existing good or service.
• Includes an improvement in the good itself or how the good is produced.
• E.g.- Increasing the processing speed and memory capacity of a personal
computer.
Product Innovation
• Process of developing and making available a new product that is substantially
different from, and an improvement over, what currently exists.
• E.g.-Tata Nano
Sometimes an existing product can experience so many process innovations that it
actually becomes a new product.
E.g.-Television-Its been subject to so many process innovations that it effectively
becomes a new product.

6. Degree Of Innovation
Incremental Innovation
• Builds upon existing knowledge and resources within a certain
company.
• Involves modest technological changes and the existing
products in the market will remain competitive.
Radical Innovation
• Requires completely new knowledge and/or resources.
• Involves large technological advancements, rendering the
existing products non-competitive and obsolete.

7. Global Innovation Index
(by INSEAD and WIPO*)
GII recognizes the key role of innovation as a driver of economic growth and
prosperity and acknowledges the need for a broad horizontal vision of innovation that
is applicable to both developed and emerging economies
Pillars Of GII
• Institutions
• Human capital and research
• Infrastructure
• Market sophistication
• Business sophistication
India witnessed a drop in the global innovation index (GII) ranking of 2012 to 64th
position from 62nd last year.
* World Intellectual Property Organization

8. Need For Innovation in India
• To improve its factors of competitiveness.
• To improve productivity and various efficiencies.
• To accelerate its growth.
• To innovation to make growth more inclusive as well as environmentally
sustainable.
• To generate income to meet backlog of needs in
education, health, water, urbanization, and in the provision of other public
services.
• To develop high value industries.

9. Examples of Innovation

10. SULABH INTERNATIONAL
• Although ancient Indian civilization had world’s
most advanced sanitation and sewage system,
out of 4500 cities only 232 cities of modern
India have sewage sanitation availability.
• In India, as many as 50 diseases are caused by
lack of proper sanitation , affecting over 80% of
the population.
• According to Mr. R.S Jha who is a Senior
Innovator at Sulabh International , women have
to go for defecation before dawn or after dusk.
The school drop-out of female child is also very
high, as toilet facility in schools is barely
available.
• Sulabh is the brain-child of Dr. Bindeshwar
Pathak who started ‘Sulabh Svachchh
Shauchalaya Prashikshan Sansthaan’ (Sulabh
Clean Toilet Training Institute) in 1970.

11. SULABH INTERNATIONAL
• Sulabh has a workforce of over 50,000
volunteers in 25 states and 4 union territories,
in 436 districts and 1247 towns in India.
• It has set upto 11 lakhs household toilets and
7500 community toilet blocks.
• Over 190 human excreta based biogas plants
and made 640 towns scavenging free.
• The Santitation facilities created by Sulabh are
used by over 10 Million people everyday.

12. Innovations at Sulabh International
One of the major achievements of
Sulabh Technologies is ‘Twin-Pit Pour
Flush Toilet’, which provides an on-site
human excreta disposal mechanism and
is an easy and cheap alternative to the
dry toilets. It is not only easy to build and
maintain but also requires much smaller
space and financial resources. One pit is
used at a time while the other one
remains blocked. When the first pit gets
filled up it is blocked and excreta is
diverted to the other pit which then is
put to use. By the time the second pit is
filled up the excreta in the first pit dries
and becomes free of foul smell and can
be use as a rich fertilizer for plants.

13. Biogas plants
• This design is known as the ‘Sulabh
Model’.
• This model does not require
manual handling of excreta and
ensures complete resource
recovery.
• The biogas generated can be
carried through pipelines and can
be used for cooking, lighting,
electricity generation, and body-
warming.
• Sulabh presently runs 160 biogas
plants all over the nation. These
plants run on human excreta. This
is an innovation by Sulabh and
provides three-pronged benefits of
hygienic sanitation, renewable bio-
energy source, and mineral-rich
manure.

14. SIXTH SENSE – Pranav Mistry
• Sixth Sense device augments the
physical world around us into digital
information and lets us use natural hand
gestures to interact with that
information.
• The hardware that makes Sixth Sense
work is very simple: a pendant or any
other wearable interface that has a
camera, a mirror and a projector and is
connected to a smart phone. It can be
easily sourced and customised, and
costs a modest Rs 15,000.
• Pranav Mistry, Research assistant and
PhD candidate at MIT ,has developed
the device.
Video link :
http://www.ted.com/talks/pranav_mistry_the_thrilling_potential_of_sixthsense_techn
ology.html

15. SARVAJAL-WATER ATM
• Sarvajal, which is run by Piramal Water
Private, was started back in 2008 with the
mission of providing affordable, accessible
and pure water for all. Based in
Ahmedabad, Sarvajal recruits local
entrepreneurs to run water service
franchises.
• Sarvajal, which means 'water for all', is
providing clean water for almost 70,000
people with their solar powered water
ATMs. Powered through a franchise
business model, Sarvajal provides the
water filtration equipment and the
maintenance while a member of the local
community runs the business and sells the
water.

16. • Their water filtration devices, which
utilize reverse osmosis and ultraviolet
rays to clean the water, are equipped
with real time monitors to alert the
company of their status
• If a filtration unit begins to not operate
correctly and water quality drops, the
unit notifies Sarvajal immediately and
the company sends someone to
maintain it.
• Customers get 24-7 access to clean
water and pay using their pre-pay cards
(or coins), which they can recharge just
like mobile phone minutes
• Now there are 127 rural franchises
serving almost 70,000 people and
families pay around Rs100 month for
clean water.

17. JAIPUR FOOT
• The Jaipur foot is the unpatented innovation of Mr.
Ram Chander Sharma that has made a normal life
possible for lakhs of amputees around the world.
• In 1975, the society began with a very modest fitment
of 59 artificial limbs but is now fitting about 20,000
artificial limbs and about 30,000 Polio Callipers, and
other Aids and Appliances every year in India and
abroad.
• The Jaipur foot costs less than $30 compared to $8,000
for a comparable prosthesis in the United States. In
fact, the Jaipur foot is given free to all by
BMVSS(Bhagwan Mahaveer Viklang Sahayata Samiti )

18. Godrej Chotukool
• In India more than 80% of the households lack basic appliances such as
refrigerators.
• Electricity is unavailable or unreliable in many rural parts of India, where
families earning under Rs200 per day can't afford major appliances.
• People needed an affordable way to keep milk, vegetables and leftovers
cool for a day or two—both at home or away.
• Innovation
• Instead of traditional compressors, ChotuKool is based on a thermoelectric
chip that maintains a cool temperature on a 12-volt DC current or an
external battery. The unconventional opening ensures cold air settles
down in the cabinet to minimize heat loss and power consumption. The
unit is highly portable, with 45 litres of volume inside a fully plastic body
weighing less than 10 pounds.
• Priced between Rs 3000- 3500, about half of an entry level refrigerator.

19. Features of Chotukool

20. GE MAC 400 – ECG Machine
• Innovated by GE India
• Portable, original US product
wasn’t.
• Sturdier
• Battery Powered, US product
didn’t work in rural India.
• Reason for innovating – power
outages.
• GE India innovation at 20% of cost
of GE US’ innovation.
• US Medical Industry dumped GE
US product and adopted GE India
Innovation.

21. Innovation – Solving Local Problems
Africa India United States
Substituting : Footwear Waterproof Enclosure for Cables --
Cost Substitution :1$ by nil 2-4 $ by nil #/240 $
Innovation result = Substitution of a Innovation result = Substitution of Innovation result = Introduction of a new
product product product (more in developed economies)

22. The Great Indian-JUGAAD
Newly Defined Rural Mobility

23. Because powerful ideas for fighting poverty and hardship
won't come from corporate research labs, but from our needs
-Prof Anil Gupta
• Pomegranate de-seeder by Uddhab Bharali (Left) and
• Coconut tree climber, Water-Walking Shoes and Peddle-Powered washing Machine(Right)

24. Nano-Ganesh
• Video link : http://www.youtube.com/watch?v=Q5gfWt30Pjk

25. Professor Anil Gupta
• Documented 25,000 rural innovations
• SRISTI (1993)- Society for Research and
Initiatives for Sustainable Technologies and
Institutions
• Grassroots Innovation Augmentation
Network (1997)
• Honey Bee Network
• Innovation Inc.
• Shodh Yatra – 12+ years

26. Governmental Innovation
• Mr. Sam Pitroda is an internationally respected development thinker, policy
maker, telecom inventor and entrepreneur who has spent over four
decades in Information and Communications Technology and related
human and national developments initiatives thereby Increasing Skills,
Productivity and Competitiveness of Industry and also promoting SME’s.
• The India Inclusive Innovation Fund
• Tod Fod Jod - Supporting Childhood Innovation
• Innovation Clusters - Pilot Update & Scale Up Plan
• Innovation Challenge to reduce worker drudgery

27. INNOVATION COUNCILS
• To help implement National Strategy & Prepare Roadmap for the
Decade 2010-2020:
National State Sectorial
Innovation Innovation Innovation
Council Councils Councils
27

28. Indian Context

29. Disparity Demography
- Rich & Poor - 550 million below 25
- Urban & rural years
- Educated & - Health, Nutrition
Uneducated - Education, Jobs
Development
-Expedite the process
-Create new methods
& new models

30. Global Innovation Efficiency Index
• Index measures Input to Output Ratio.
• Second Best in the World.
• Hong Kong 4/66 Singapore 3/94 US – 7/26
Canada – 8/54 UK 10/50. (GII/GIEI Ranks)
• Lower efficiency rank of above countries can
be attributed to the profit seeking nature of
their innovations.
• Doing more with less.

31. Bottom Up Approach
Sulabh Intl. Chotukool Sarvajal Jaipur Foot
Increasing
Affluence
Target Customer # Sample consists only amputees
Population Coverage
Population unaffected by the innovation
Population affected by the innovation
*not to scale

32. Non- Indigenous
Apple IPhone Sixth Sense Facebook
Increasing
Affluence
Population unaffected by the innovation
Population affected by the innovation
*not to scale

33. Indian Innovation - Pyramid
Corporate
Innovation
(more visible)
Non- Corporate
Innovation
(Jugaad, Rural
Innovation)

34. Jugaad Innovation
• Opportunity in adversity.
• No R&D.
• No huge budgets.
• No Ph.D. holders.
• Totally opposite to conventional wisdom.
• Diametrically opposite to management
practices employed globally to encourage
innovation.

35. Jugaad Innovation
• Following the heart.
• Little or no monetary incentives.
• Best incentive to them is the knowledge that
their idea matters.
• Above points experienced in the interactions
we had with various relevant people we
interviewed.

36. Frugal Innovation
• Addressing real needs of common poor people with the right
product at the right price. Exploring innovations in segments
neglected by developed countries.
• Frugality = Cheaper Substitute ?
• Does it mean people in India innovate only cheaper products?
• Or Frugality = Greater Price-Value Substitute ?
• Frugality resulting in greater social welfare – is frugal innovation
the better kind of innovation ?
• Is Frugal innovation the best competitive cost cutting exercise ? – a
way to avoid wage suppression, subsequent exploitation and social
unrest.
• Case : in absence of Jaipur foot innovation, an average Indian
earning 2$/per day would have to spend earnings of 15 years to get
an artificial leg from US.

37. Corporate India Innovation (Labour)
• Case of Expats :
– Pranav Mistry
– Dr. Ramachandran (Phantom Limb)
• Case of Indians based in India :
– Trend : Shifting R&D centers from parent countries to India.
– 750 R&D Centers (Setup by MNCs in India, Each Indian
innovator working on Global Projects).
– Indian innovation masked by the MNC brands.
– Are Indian based in India, creative enough ? – LBS study utilizing
“Forward Citation Criteria” concluded Indian R&D subsidiaries
file equally innovative patents than its US subsidiaries.
– Why no Google/ Facebook from India?

38. Corporate India Innovation (Capital)
• Underdeveloped Investment Ecosystem (Far
lower ratio of Investor per Entrepreneur as
compared to GII leaders. (VCs, Angel Investors)
• Low risk appetite of investors.
• Dominant funding Ex-CEOs, Ex-COOs etc. and not
on the merit of innovators.
• Dominant funding for adaptation of western
ideas. e.g. flipkart.com a spinoff of amazon.com.
• Govt. funds limited yet handled inefficiently. E.g.
NIF funds frozen for 9 years in 12 years since its
inception.

39. Trend : Reverse Innovation
• Innovating in poor countries and moving it to
developed countries.
• Defying Raymond Vernon’s Product Life Cycle
theory which states Innovations will happen in
advanced countries and then later adoption by
developing countries will follow.
• Counter Intuitive. Almost everyone in a
developing country desires apple iPhone but Why
would a rich man buy a poor man’s innovation ?
• Example : GE Healthcare India, Tata Nano, REVA

40. Key Observations
• Innovating for masses is a recurrent theme in
non-corporate Indian innovations.
• Frugality is inherent in most of Indian
innovations.
• Evidence of brain drain at play in Corporate India
- Innovations.
• Availability of very able innovative human
capital.
• Scarcity of funds to promote and utilize human
capital and their innovations.

41. Suggestions
• Joining hands of rural innovators and
corporates.
• Incentivizing innovation.
• Reverse Innovation trend be encouraged by
identifying scope of innovations in areas
neglected by developed economies.

42. Thank You