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Sanctuary of Innovations |
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| Abstract |
The incubation model for linking innovations, investment and enterprise has often relied on the local adaptation of the western model. A few decades ago, phone, fax, internet and copying facilities were not affordable by individual innovators. It is in such a context that the concept of common facilities for work and office evolved in western countries. The idea of shared space is a good one for early stage entrepreneurs. However, conventional incubators may have norms that are restrictive on creativity, and a sanctuary model may be more appropriate for in situ incubation. The norms in a sanctuary model promote a culture of collaboration, communication and participatory processes, which support creativity and the resolution of the tough challenges start-up entrepreneurs face. |
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Giving wings to our grassroots innovators Grassroots Innovation Augmentation Network (GIAN) GIAN is helping the unaided, unqualified, untrained individual innovator from the informal sector who has conceptualised or developed a technological innovation and/or outstanding traditional knowledge practices. GIAN is India’s first technology business incubator focused on incubating and commercialising grassroots innovations. Grassroots innovations are essentially solutions generated by people at the grassroots levels to tide over persistent problems, the solutions to which are either not available or not affordable by a large section of the consumer masses in developing countries like India. These innovations, therefore, capture an unmet need of a large section of the population, and building a value chain around these innovations to take them to market holds the potential of wealth creation in a truly sustainable and equitable manner. The objective of GIAN is to build the value chain around these innovations with the end objective of making these available to the masses through the market mechanism or otherwise. www.gian.org Micro Venture Innovation Fund (MVIF) While innovations have propelled entrepreneurship, the risk taking abilities in under-represented segments of technologies or new technologies have not witnessed an increase. However, with the Government declaring this decade as the decade of innovation and taking bold steps to support the innovation movement in the country, things seem to be improving. The innovators from the informal sectors generally do not have a sound financial background. They mostly come up with frugal innovations to fill a technological gap between need and supply. Mostly, they are not capable of scaling up the production and/or marketing of their innovation because of fund constraints. Loans as an option are also not available due to the lack of a guarantor or collateral for mortgage generally required by banks and other financial institutions. Whatever little resources they may have, may not be sufficient for mortgaging, or they may not like to take a risk with it as their livelihood depends on it. They may have been successful in converting their ideas into prototypes but then the story almost ends there. Venture capital firms do not consider supporting them due to their limited fund requirements of a few thousand rupees to maximum 25 lakh while banks may not be ready to take a risk without proper documentation or without collateral or a guarantor. Realising the need of extending risk capital to grassroots innovators, NIF established in October 2003, a dedicated risk fund for such innovators called the Micro Venture and Innovation Fund (MVIF) of Rs 4 crore for ten years with the support of SIDBI, which was operationalised in January 2004. Under the scheme, support from the MVIF is made available to innovators and entrepreneurs who are associated with NIF for technology commercialisation. The uniqueness of the MVIF of NIF is that it is the first and only its kind micro venture risk fund in the world, which extends financial support to grassroots innovators under a single signature on a simple agreement of understanding without any collateral or a guarantor. Unlike micro finance or conventional venture funds, MVIF invests in risk areas with a high probability of failure, investing in those technologies and products for which either a market does not exist or may be very limited. Apart from financial returns, one of the key criteria for the selection of a technology for MVIF support is social return or social value created for the benefit of society at large. NIF extends MVIF support to the innovators directly as well as through their regional incubators i.e. GIAN and GIAN/NIF Cells. The team at the Business Development (BD) department of NIF conducts an initial market assessment and develops the investment plan and the proposal, which is presented to the Fund Management Committee (FMC). The FMC evaluates and gives recommendations on the proposals submitted by BD Team. The MVIF, on a case to case basis, offers funds with a reasonable moratorium period with monthly and also seasonal repayments with a consideration of about 12.5 per cent interest. The approval procedure is unique, fast and hassle free for the innovator as we are not demanding innovators to submit anything except a simple request about their requirement. The NIF team does all documentation and provides mentoring and all kinds of handholding support to the innovator. The FMC also advises the BD team about project monitoring, commercialisation strategy and suggests mid-term corrections if any. A local mentoring team also facilitates proper utilisation of funds and guides the innovator from time to time. From the four crore fund, till date, we have supported a total of 192 projects and the total sanctioned amount is Rs.3,87,66,637 (three crores eighty seven lakhs sixty six thousand six hundred and thirty seven only), the disbursed amount is Rs. 3,40,97,637 and the total repayment amount is Rs. 2,16,37,496. Grassroots Technological Innovation Acquisition Fund (GTIAF): Expanding the public domain Many technologies may take a long time to blossom into products or services. In some cases, they may not have much future impact, except in the specific context in which they originated, unless they are blended with other technologies from the formal or informal sectors. Some technologies may not have much commercial potential at all, but be open to social diffusion. The GTIAF addresses such needs. NIF acquires the rights to such technologies, which are then licensed at low or no cost to small entrepreneurs. Some of these technologies enter the public domain and are transmitted to communities whose members make use of them. The idea here is that the state and not innovators should subsidise society. Though NIF acquires the rights to a given technology, innovators still retain their right to use their innovations in any way they want at their level. If the NIF is able to license it to a third party for a higher sum or generate more revenue, these funds are shared with the innovators even though they have licensed the rights. Volunteers can contribute to pooling technologies to generate value-added products, use social media to create wider awareness and translate non-monetary practices into local languages. NIF organised two GTIAF meetings in February and March 2012 inviting different innovators and farmers to explain to them the purpose of the fund, rights, and the duties and obligations of both NIF and the innovators. Subsequently, the innovators willing to hand over the rights of their technologies to NIF signed agreements with it. In total, NIF has acquired rights of seventy eight technologies of fifty eight innovators from fourteen states at the cost of Rs Thirty five lakh fifty thousand. 36 engineering technologies and 23 farmer varieties were acquired by GTIAF. Plans are being chalked out for social diffusion/dissemination of these technologies in relevant pockets of the country. Social Innovation Fund (SIF) The recent economic downturn further squeezed entrepreneurial opportunities for young and old innovators. Even earlier, there were hardly any funds to invest in the creative ideas of young students, self-employed people or even professionals who had ideas and sometimes even the proof of concept which could make a difference. Despite his best efforts, Prof Anil Gupta could not convince members of the National Innovation Council to invest funds available under the India Inclusive Innovation Fund in early stage ideas to unleash the power of inclusive social innovations, instead of investing in regular private companies. The majority of the so-called angel funds have very seldom invested in hard conceptual technologies or other such initiatives. 140 Young Technological Innovation Awards given by SRISTI in the last four years at the hands of Dr RA Mashelkar, hardly few ideas have gained traction so far. It is a pity that in the land of entrepreneurship and major social movements, the socially relevant ideas of open and inclusive innovation should find it so difficult to take off. It is obvious therefore that well-meaning and socially committed individuals will have to come together to create such a fund. No good idea should remain unexplored. All those who believe that pooling small amounts, whether Rs. 500/- or five lakhs, can help in creating a fund to promote social innovations. No good idea in education, health, art, culture, technology, energy or any other sector contributing to social development should remain unexplored if a group of knowledgeable colleagues believe in that idea. This support system helps the innovators at a very early stage to take their idea to proof of concept stage. While no funding support is available in the country for this gap, the need of such intervention was a long standing need. Through this programme of SIF, SRISTI wishes to support innovations in technology, education, culture, institutions, etc. By now ten socially relevant projects have been supported by SIF at a very early stage. Innovations like single button cell phone for people, cell phone based microscope for malaria detection, broom making machine for road side workers for productivity increase, shoes for blind people etc have been supported by SIF in the past. Each team is given support once the SIF committee finds it worth supporting, and extends support for mentoring, fabrication, design and other needs. While supporting projects like cell phone based microscope, the SIF team at SRISTI scouted potential innovators through various events and processes across universities in India. Once they apply for SIF support, the SIF team evaluates its merit and possible social impact and connects with the right kind of mentors. In the case of the cell phone based microscope project, SIF introduced the team to experts in IISC Bangalore and arranged a three month working facility with experts to build the prototypes. Right after the proof of concept is built it is linked to suitable fabricators and design experts through mentoring networks at SIF. In the case of the project on hydro operated jute bag making machine, the SIF team brought the proof of concept to design labs and gave productisation support so that the innovation could reach the mass market. In the case of the broom making machine, the idea itself was scouted during the summer innovation school program at SRISTI. Based on its need and relevance the team was given support to do market search, for fabrication support and prototyping through SIF. When the innovation was given to users, they found it quite efficient and productive. The process of the SIF support system is thoroughly transparent and every progress by the supported teams is put on the web for reference of others so that better supports can be further pulled together. Support for up to Rs 10,000 for any SIF project can be authorised by the project management team at SRISTI. If the need is between Rs 10,000 to Rs 25,000 the secretary of SRISTI takes a call immediately. If the support required by any innovation team is higher, then the Program Advisory Board scrutinises each application and makes a suitable decision. All contributors toward this fund are updated periodically after each project support and suggestions and inputs are gathered so that the respective innovation gets the best possible support via SIF and via the Honey Bee Network. www.sif.sristi.org Shodh Sankal: A Local Network of Grassroots Innovators The concept of Shodh Sankal (a chain of experimenting farmers) to generate a lateral learning environment among grassroots innovators was started by SRISTI in 1996. The idea was to bring together experimenting farmers and discuss the results of trials that they have taken up on their own to solve various local problems. The discussion also enhances the esteem for local knowledge systems apart from speeding up the process of technological change in regions where the formal technology generation system has not been very successful-such as dry regions, mountainous regions and other disadvantaged areas. We conducted a meeting with SEWA and women where we understood there was a problem with collecting gum from the babool tree. A stick is needed to remove the gum which is often at a height, and often the gum falls to the ground where it is contaminated by the soil. So the women asked us whether there is any innovation with which they can easily collect gum and be also safe from the thorns of the babool tree. After discussion with our innovator, Khimjibhai Kanadia, a solution was proposed for the problem. In Deodar, Banaskantha we conducted a Shodh Sankal meeting to discuss various problems with animals causing loss to farmers such as by Nilgai. One farmer asked for a solution for a problem of pigs, since we did not have any solution, Sonaji, who does organic farming gave the solution; pigs have a sensitive nose hence if we sprayed some chilli powder on their usual routes, the pigs won’t come. Also if some hairs are sprayed on the route, it irritates the pigs and they avoid coming to the farm. Benefit Sharing Many products have been launched in the market through SRISTI Innovations. SRISTI Innovation is the first organisation to give recognition to the knowledge provider. SRISTI organises tie-ups with various organisations and the royalty is distributed with the knowledge provider. In 2006, a formulation for skin infection was made using various types of traditional knowledge collected from villages and tested in the SRISTI Lab using the chromatographic method. An agreement was made with Troikaa Pharmaceuticals to launch the product in the market and it was decided that the royalty of the product to be given to the innovator. Other examples of benefit sharing include Dharambir Kambhoj, the food processor innovator, who in 2007 was rickshaw puller and in 2014 is a taxpayer to the Government of India. Various products made by innovators are being used by many Self Help Groups in the country and are also exported to other countries. Karimbhai Sumra is a herbal healer in Banaskantha, he comes from a tribal area. He had talent and knowledge but was financially poor. After the introduction to the Honey Bee Network he gained recognition and the knowledge he possesses spread all over world, BBC has documented his work and knowledge. Seetaben Gaikwad was nominated for SRISTI Samman, she was from a tribal area and had never seen a huge crowd in front of her, when she came on the stage for receiving the award she became so mentally stressed so she was hospitalised and treated for six months. Community workshops NIF has supported 37 community workshops all over the country. The main objective is to support grassroots innovators so that they do not need to visit cities for minor problems with their innovations. The workshops also help other local innovators to learn. They facilitate local innovators to solve problem at the local level and help new innovators to learn things from other innovators by discussion, this in turn helps in establishing a local network of innovators.Indigenous use of modern technology: SONAR traps for fishes If your telephone handset disappears one day, what will you imagine? Someone has played a prank on you or that it might be sold by a petty thief in a local flea market. Would you ever imagine these handsets being used as fish traps? We came across a news item to this effect in a local newspaper (Mid Day, June, 1996). It is not unusual for crazy people to try out new things and improve their livelihood prospects. Some of these trials become the harbinger of new ideas and products. It is true that many of these innovations may not be sustainable. For example when fishermen use dynamite to kill fish, not only the young fish die, but the coral reefs are also damaged. However, fishermen in a Malaysian village were very imaginative and perhaps not so insensitive to the sustainability of their practice. The telephone department in Malaysia was very worried when the handsets from public telephones started disappearing one after another. On investigation, they came across a mind boggling innovation. Fishermen in a coastal village took these handsets and attached the same to two long wires. These handsets were lowered in the water and the lose ends were attached to a battery with a switch. When the connection was made to pass the current, a shrieking sound came out of the handsets. This sound attracted the fish which were caught easily. Vol 20(4) Oct -Dec 2009 &21(1)Jan -Mar 2010Benefit sharing model 1 Innovator ...............................30%2  Nature.....................................5%3  Community......... ...................5%4  Innovation Fund....................20% 5  Research and Development.15% 6  Institutional Expenses...........15% 7  Contingency..............................5% 8  Women Empowerment...........5% |
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| Volume No. |
Honey Bee 25(4) & 26(1) 122-127, 2014-2015 (25 years celebration) |
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