Incubation and development: an overview of technology incubation innovation system of India
| Pages | 226-244 |
| Published date | 09 July 2018 |
| Date | 09 July 2018 |
| DOI | https://doi.org/10.1108/WJSTSD-01-2018-0001 |
| Author | Kanchan Lala,Kunal Sinha |
| Subject Matter | Public policy & environmental management,Environmental technology & innovation |
Incubation and development: an
overview of technology incubation
innovation system of India
Kanchan Lala and Kunal Sinha
Center for Studies in Science, Technology and Innovation Policy,
Central University of Gujarat, Gandhinagar, India
Abstract
Purpose –The purpose of this paper is to analyze and summarize growth and development of technology
business incubation system in India. The study in this route tries to explore factors which include various
actors and agencies influencing the process of incubation and innovation.
Design/methodology/approach –The paper in route to access the role of different actors and
agencies situated aro und the incubation pro cess is being executed t hrough the systems of inn ovation
framework. Data have be en collected from the seco ndary sources includin g government departmen t,
ministries and other sources.
Findings –The study besides providing an in-depth analysis of the incubation process in India finds that the
process is relatively new in the Indian context and lacks a profound policy for escalating the process of
technological incubation. The study also finds that over the years India’s innovation potential has escalated
significantly which in a way can be seen as an optimistic result in the growth and development of technology
business incubation.
Originality/value –The proposed study is one of the few in this category, especially while analyzing
technology business incubation with respect to India. The study also tries to add on literature in the domain of
technology incubation especially in the context of India.
Keywords India, Technology business incubation, Innovation, Incubation, Start-ups, National innovation system
Paper type General review
1. Introduction
The basic objective of innovation from its definition to commercialize invention, which
includes the process of a new product, process or new organizational form, is deeply rooted
in helping human being live a comfortable life. Technology business incubation is one such
arrangement where the start-ups explore their ideas into visionary dreams under a guided
support by the incubator (Phillips, 2004).
The process which was initiated accidentally from Batavia industrial center in New York
around 1959 has now be seen at almost all the corner of the world. The model besides
creating low-cost and effective innovation also adds on other aspects ranging from job creation,
enhancing technological capability and even helping in better academia-industry collaboration
(see Table I).
However, besides similar in structure, the concept of innovation is significantly diverse
at different locations, for developing countries it is more of a radical in nature or radical
innovation whereas for the developing countries the structure is more of incremental or
import based. To dilute these two poles technology-based incubation program act as a blend
between the two, by promoting low-cost innovation in the diversified areas ranging from
healthcare, biotechnology, automation to robotics (Manimala and Vijay, 2012).
In India, the process of technology incubation took shape in 1982 with the setup of
National Science and Technology Entrepreneurship Board (NSTEDB) an apex body under
the department of science and technology in 1982, with a broader objective to enhance
technological growth by integrating academia-industry for an effective, efficient and
sustainable development (Tang et al., 2013). In India, there are 125 technology business
incubators (TBIs) located at various locations, having research domain in every diversified
World Journal of Science,
Technology and Sustainable
Development
Vol. 15 No. 3, 2018
pp. 226-244
© Emerald PublishingLimited
2042-5945
DOI 10.1108/WJSTSD-01-2018-0001
The current issue and full text archive of this journal is available on Emerald Insight at:
www.emeraldinsight.com/2042-5945.htm
226
WJSTSD
15,3
and emerging areas of science and technology. The data in Table II provide a
comprehensive overview of India’s incubation process.
The central purpose of this paper is to provide an overview of the technology incubation
process in India. The paper is being organized in the following pattern. The next section
elaborates the literature in the domain of TBI with special reference to India, followed by
Section 3 describing the analytical framework. Section 4 introduces the methods. Section 5
discusses the technology incubation system in India. The final section concludes with
remarks and future implications.
2. Review of literature
Innovation is regarded as one of the important aspects in the life of every individual across
the globe; the concept which emerges with the early work of Schumpeter (1934) can now be
traced in the national policy of every nation throughout the globe. Besides the difference in
approach by developed and developing nation, the concept has created a new trajectory in
the economic development. Research on innovation suggests that innovation is a systematic
phenomenon, where the interaction and interdependency between various actors and
agencies shape the entire innovation process.
With the shift in the structure of the universities from teaching and research to
entrepreneurial mode, universities have become a significant player in spearheading the
mechanism of innovation and development (Wissema, 2009; Mowery and Sampat, 2004).
The process which involves generation, transfer and diffusion of knowledge through
technology transfer, patenting and commercialization of innovation is shaped by the
integration and interdependence between various actors, institutions and policymakers.
The term “technology business incubation”(university entrepreneurship, techno-
entrepreneurship, academic entrepreneurship, incubates, start-ups) is often being referred in
the academic literature to describe the way universities have undergone interaction with the
Actors and agencies Benefits
Government Job creation, national and regional development, increase in technology capability
R&D Helps in commercializing technology or invention, improves interactions with industry
Business and
corporate sectors
Better choice for investment, access to new technology
Start-ups Access to resources and business support, reduces initial market risk
Source: United Nations Publication (2004)
Table I.
The benefits of
incubation
process of various
actors and agencies
Location Morethan 60 percent of the incubators are located in the urban locations
Host institute Around 45 percent of the host institutes are from the public sector and 55 percent from the
private sector
over 75 percent of operation is done from academic institute, 7 percent from R&D institute,
and 6 percent from Science or IT Park
Focus sector Around 30 percent-ICT/Electronics
20 percent on Health/Biotechnology
13 percent on Agriculture
14 percent on Nanotechnology, Textile, Media
Business Model 87 percent on “not for profit”
Legal Structure 68 percent registered under society Act
19 percent a part of host Institute
Source: Data from NSTEDB database (www.nstedb.com)
Table II.
Overview of
incubation process
in India
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Incubation and
development
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