Transcript TECHNOLOGY INNOVATION IN INDIAN SMALL AND MEDIUM

TECHNOLOGY INNOVATION IN
INDIAN SMALL AND MEDIUM
ENTERPRISES (SMEs) – THE ROLE
OF CLUSTERS AND R&D ALLIANCES
Dr. Rama Swami Bansal
Dr. V.P.Kharbanda
STATUS OF SMEs IN INDIA
Number
3.5 Million
(80% of total enterprises)
Contribution to Industrial Output
50%
% of Total Exports
34%
% of Private Enterprise Employment
50%
Products
(about 8000)
(Consumer items, capital and intermediate goods)
STATUS OF SMEs IN INDIA
Year
Number
(million)
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2.1
2.2
2.4
2.6
2.7
2.8
2.9
3.1
3.2
3.3
3.4
3.6
Employment Exports
(million)
(Rs.
billion)
13.0
139
13.4
178
14.0
253
14.7
241
15.2
365
16.0
312
16.7
444
17.2
490
17.2
542
18.6
698
19.2
712
20.0
860
%of
Total
Exports
31.5
33
36
35
34
33
35
35
34
34
34
34
860
712
698
542
490
444
365
253
31.5
2.1
1992
2.2
1993
13.4
2.4
1994
Number (million)
%of Total Exports
241
178
139
13
Employment (million)
312
33
Exports (Rs. billion)
36
14
2.6
1995
35
14.7
2.7
1996
Year
34
15.2
2.8
1997
33
16
35
16.7
2.9
1998
3.1
1999
35
17.2
34
17.2
3.2
2000
34
18.6
3.3
2001
34
19.2
3.4
2002
34
20
3.6
2003
1000
900
860
800
700
698
712
600
542
500
Exports (Rs. billion)
% of Total Exports
490
444
400
365
312
300
200
253
241
36
35
178
139
100
31.5
33
34
35
33
35
34
34
34
34
0
1992
1993
1994
1995
1996
1997
1998
Year
1999
2000
2001
2002
2003
25
20
20
19.2
18.6
16.7
17.2
17.2
16
15
14.7
15.2
14
13
13.4
Number (million)
Employment (million)
10
5
2.1
2.2
2.4
2.6
2.7
2.8
2.9
3.1
3.2
3.3
3.4
3.6
0
1992
1993
1994
1995
1996
1997
1998
Year
1999
2000
2001
2002
2003
FORM THE BACKBONE OF INDUSTRIAL DEVELOPMENT,
BUT ARE AS YET, IN TECHNOLOGICAL BACKWATERS
PROBLEMS IN TECHNOLOGICAL UPGRADATION

Poor financial situations and low levels of R&D

Poor adaptability to changing trade trends

Desire to avoid risk

Non-availability of technically trained human resources;

Emphasis on production and not on production costs.

Lack of management skills

Lack of access to technological information and consultancy services

Isolation from technology hubs

A RECENT STUDY (2005) CARRIED BY RAMA BANSAL ON ‘R&D
AGENCY – INDUSTRY PARTNERSHIP FOR TECHNOLOGY
DEVELOPMENT AND TRANSFER IN INDIAN CONTEXT’ CONFIRMS TO
THIS AND HIGHLIGHTS MAJOR WEAKNESSES INDIAN SMES

FAILURE OF TECHNOLOGY TRANSFER IN A PARTNERSHIP HAS BEEN
MAINLY DUE TO UNRIPE / UNPROVEN TECHNOLOGY;

DISTRUST OF AN ENTERPRISE ON THE TECHNOLOGY TRANSFER
PROGRAMMES OF THE R&D AGENCIES AND UNWILLINGNESS TO
SHARE THE BENEFIT;

LACK OF FORESIGHTEDNESS ON AVAILABILITY OF RAW MATERIAL
IN SUFFICIENT QUANTITY AND MARKET;

LACK OF MUTUAL UNDERSTANDING

LACK OF EXPERIENCE OF THE R&D AGENCY IN IDENTIFYING AND
DEVELOPING TECHNOLOGIES FOR COMMERCIAL MARKETS;

SLOW SPEED OF ADMINISTRATIVE ACTIONS IN THE R&D AGENCY /
INDUSTRY;
LACK
OF INFORMATION AND TRAINING,
IMPROPER
WRITTEN AGREEMENT,
ALL THIS SHOWS THAT MUCH MORE NEEDS TO BE DONE APART FROM
SIMPLE ALLIANCES BETWEEN SMES AND R&D INSTITUTIONS.
THIS IN FACT NEEDS A SYMBIOTIC APPROACH WHERE THERE IS
CONSTANT EFFORT FOR EXCHANGE AND UP-GRADATION OF
KNOWLEDGE NOT ONLY FOR TECHNOLOGY BUT ALSO FOR HUMAN
AND MATERIAL RESOURCES AND MARKET CONDITIONS i.e. FOR
COMMERCIALIZATION.
IT IS IMPERATIVE TO GIVE THEM A CONDUCIVE ENVIRONMENT,
WHICH IN THE PRESENT CONTEXT OF GLOBALIZATION CALLS FOR AN
HUMAN CENTERED APPROACH
WITH TACIT KNOWLEDGE PLAYING A PREDOMINANT ROLE
KNOWLEDGE
AS A FACTOR FOR COMPETITIVE ADVANTAGE HAS
REPLACED TRADITIONAL FACTORS LIKE LABOUR AND CAPITAL
NEED A CONDUCIVE ENVIRONMENT
TO BUILD UP INDEGENOUSTECHNOLOGICAL
CAPABILITIES (ITC)
POLICIES
and
PROGRAMMES
INT. TRANSFER
LOCAL TRANSFER
DATA BANKS
SMEs
(APCTT,
NRDC)
FINANCIAL RESOURCES
(ICICI, IDBI, SIDB)
HUMAN RESOURCE
R&D LABS (PATSER,
HGT).
A conducive environment:

1
Formulation of appropriate national policies and programmes,

2
Building up Indigenous Technological Capacity and R&D
alliances,

3
Knowledge flows and technology databases,

4
Inter firm linkages, communication and cooperation – Clusters,
S&T Parks etc
1.
Formulation of appropriate national policies
and programmes,

Setting up Industrial District/Technology Parks/Clusters to promote
sourcing of new technology, innovation and effective transfer

Organizing local level information services, data banks and
seminars in collaboration with professional bodies.

Sending experts to SMEs to assist them with the introduction of new
technologies

To establish training centers for human resource development for
SMEs.

Establishing business centers

Promote strategic alliances with R&D institutions, universities and
other enterprises at national, regional and international level.
MAJOR INDIAN GOVERNMENT INITIATIVES PROMOTING
R&D AGENCY – INDUSTRY PARTNERSHIP
Sl.
No.
Name of
Agency
/Programme
Name of
Programme/
Purpose
Launch
Year
1953
Accomplishments
1.
NRDC
Transfer of
Technologies
Forged strong links with Indian / foreign R&D
agencies; has large repository of wide range
of technologies in almost all industrial R&D
sector;
has
successfully
exported
technologies
to
Brazil,
Burma,
Bangladesh, Germany, Indonesia, Kenya,
Madagascar, Malaysia, Nepal, Philippine,
Senegal, Sri Lanka, Vietnam and USA
2.
NSTEDB of
DST
S&T
Entrepreneurship
Programme
(STEP)
17 STEP’s established near educational and
research infrastructure to facilitate continued
closer ties between R&D agencies and
industry
3.
NSTEDB of
DST
Entrepreneurship
Development Cell
(EDC)
EDC set up in 55 academic institutions to
provide
information
to
budding
technopreneurs; creating entrepreneurial
culture, fostering better parent institute –
industries - R&D agencies linkages.
Sl.
No.
Name of
Agency
/Programme
Name of
Programme/
Purpose
4
DOS
Technology
Transfer and
Industrial
Consultancy Group
5
DBT
6
7
Launch
Year
Accomplishments
~1990
~ 268 technologies of ISRO have been
transferred to industries for commercialisation
and more than 265 consultancy assignments
have been undertaken by ISRO for small,
medium and large-scale industries
Biotech
Consortium India
Ltd. (BCIL)
1990
Provides linkages amongst res. institutions,
industry, government and funding institutions
to facilitate accelerated commercialisation of
biotechnology. ~9 technologies transferred to
industry and ~ 300 trainees trained for industry
during last 5 years.
TIFAC
Home Grown
Technology (HGT)
1993
>50
projects
supported
resulting
in
development
of
30
technologies
(10
commercialised)
DSIR
Programme Aimed
at Technological
Self-Reliance
(PATSER) (now
called Tech.
Development and
Demonstration
Prog.)
165 projects supported. 65 projects completed
resulting
in
commercialisation
of
30
technologies / prototypes; strengthening
linkages of industry with over 30 research
institutes.
Sl.
No.
Name of
Agency
/Programme
8
DST
9
Name of
Programme/
Purpose
Launch
Year
Accomplishments
Drugs & Pharma
Research
Programme
(DPRD)
1995
70
projects
supported
resulting
in
development of 6 products and filing of 13
process patents
TDB
Converting the
fruits of indigenous
res. into
commercial
products or
services
1996
131 projects of 107 industries resulting in
development of many industries, rise of new
industry
10
DBT
Micropropagation
Technology Parks
(MTP)
1997
2 MTPs at TERI and NCL; State-of-the-art
tissue culture production facility with an
annual production capacity of 2 million plants
at TERI
11
CSIR
New Millennium
Indian Technology
Leadership
Initiative (NMITLI)
2001
33 projects supported resulting in 3 major
technologies developed, 3 commercialised,
many minor under development and
networking of 167 R&D institutes with 55
industries
Sl.
No.
Name of
Agency
/Programme
12
NSTEDB of
DST
13
DST
Name of
Programme/
Purpose
Launch
Year
Accomplishments
Technology
Business
Incubator (TBI)
Scheme
2001
16 TBIs established to provide hand holding,
mentoring, specialised support services and
networking during start-up phase of an
enterprise
Pharmaceuticals
R&D Support
Fund (PRDSF)
2005
5 projects being supported
(Source: BANSAL, Rama Swami (2005): ‘R&D Agency – Industry Partnership for Technology Development
and Transfer in Indian Context’. PhD Thesis, Birla Institute of Technology and Science, Pilani, Rajasthan
LEVEL OF MARKET CERTAINTY AND TECHNOLOGY CERTAINTY
SUPPORTED UNDER GOI PROGRAMMES SUPPORTING
PARTNERSHIPS
2. BUILDING UP INDEGENOUS TECHNOLOGICAL
CAPACITY (ITCs) AND R&D ALLIANCES,

IN INDIA, MOST OF THE SMEs ARE BUILDING UP ITCs THROUGH THE
PROCESS OF LEARNING BY DOING.

THE PROCESS OF ‘LEARNING BY DOING’ IS CENTRAL TO
‘INCREMENTAL INNOVATION’ AND ‘TECHNOLOGICAL CHANGE’.

PROPER LINKAGES BETWEEN THE MANAGERIAL STAFF, INCLUDING
ENGINEERS AND WORKERS AT THE SHOP FLOOR WITHIN AN
ENTERPRISE. TWO WAY INFORMATION FLOW

THE STUDIES SHOW THAT LEARNING BY DOING AND
ENTREPRENEURIAL CAPABILITIES HAVE BEEN INSTRUMENTAL IN
STRENGTHENING HUMANWARE AND TECHNOWARE AT THE
ENTERPRISE LEVEL. INDIA (BOWONDER AND MIYAKE, 1988;
KHARBANDA AND JAIN, 1997).
LINKAGES WITH R&D INSTITUTIONS:
mainly through CSIR Labs and SMES
LEATHER:
CENTRAL LEATHER RESEARCH INSTITUTE (CLRI), CHENNAI, INDIA,
HAS SUCCESSFULLY INTRODUCED MICROPROCESSOR CONTROL IN
TANNERY WET OPERATIONS AT INDUSTRY LEVEL AND PROMOTED
CLEANER PROCESSING, WITH QUALITY AT INTERNATIONAL LEVEL.
CAD IS TODAY WIDELY EMPLOYED BY EXPORT MANUFACTURERS OF
FOOTWEAR AND GARMENTS.
LINKAGES WITH R&D INSTITUTIONS:
mainly through CSIR Labs and SMES
MACHINERY INDUSTRY:
MECHANICAL ENGINEERING RESEARCH AND DEVELOPMENT
ORGANIZATION
(MERADO)
LUDHIANA,
ASSISTS
GROWING
INDUSTRIAL CLUSTERS IN LUDHIANA IN THE FIELD OF KNITWEAR,
AGRO INDUSTRIAL MACHINE TOOLS AND BICYCLES INDUSTRY.
IT
HAS
CONTRIBUTED
SIGNIFICANTLY
TOWARDS
DESIGN,
DEVELOPMENT AND STANDARDIZATION OF INDUSTRIAL MACHINERY,
AGRICULTURE MACHINERY, MACHINE TOOLS, SPECIAL PURPOSE
MACHINES, CONSUMER DURABLES ETC.
THE TECHNOLOGIES DEVELOPED BY MERADO, LUDHIANA HAVE
BENEFITED NOT ONLY THE SMES IN THE STATE BUT ALSO IN OTHER
STATES E.G. IN WEST BENGAL, HARYANA AND UP ETC. IT ALSO
CATERS TO MAJOR TESTING FACILITIES FOR THE SMES IN LUDHIANA
LINKAGES WITH R&D INSTITUTIONS:
mainly through CSIR Labs and SMES
TEXTILES:
IN ANOTHER EXAMPLE, UNDER NISTADS BANKURA PROJECT, A
SOFTWARE PACKAGE CALLED AS ‘MADHU’ (MODERNIZATION OF
ARTISTIC DESIGN FOR HANDLOOM UNIT) WAS DEVELOPED IN
COLLABORATION WITH INDIAN INSTITUTE OF TECHNOLOGY,
KHARAGPUR.
THIS CAD SOFTWARE PACKAGE FACILITATES COMPUTERIZED
DIGITIZATION OF THE PICTURE/DESIGN PRODUCED BY THE
ARTIST/DESIGNER. AS A RESULT A LARGE NUMBER OF CRAFTSMEN
HAVE ADOPTED BLENDING OF THIS NEW TECHNOLOGY TO
INCREASE EFFICIENCY, QUALITY, FLEXIBILITY AND COST
EFFECTIVENESS.
LINKAGES WITH R&D INSTITUTIONS:
mainly through CSIR Labs and SMES
CERAMICS:
CENTRAL GLASS & CERAMIC RESEARCH INSTITUTE (CGCRI) NARODA
CENTRE, AHMEDABAD, IS ACTIVELY SERVING THE CERAMIC CLUSTERS IN
THE REGION. THIS IS A SMALL INSTITUTE WITH 18 SCIENTISTS PRIMARILY
ENGAGED IN IMPROVEMENT OF TRADITIONAL CERAMICS AND RURAL
POTTERY.
THERE ARE 950 CERAMIC UNITS IN GUJARAT. MOST OF THESE CLUSTERS
ARE POOR IN KNOWLEDGE BUT HAVE HIGH ENTREPRENEURIAL SPIRIT.
IT HAS BEEN CONDUCTING TRAINING-CUM-DEMONSTRATION PROGRAMMES
AND CAPSULE COURSES ON VARIOUS TOPICS OF CURRENT INTERESTS TO
THE CERAMIC INDUSTRIES
IT HAS ALSO CONDUCTED THREE ENTREPRENEURSHIP DEVELOPMENT
PROGRAMMES FOR ENCOURAGING NEW ENTERPRISES.
LINKAGES WITH R&D INSTITUTIONS:
mainly through CSIR Labs and SMES
THE CLUSTERS AT MORBI, HIMMAT NAGAR AND MEHSANA ETC.
HAVE BENEFITED A LOT IN TECHNOLOGY DEVELOPMENT FROM
CGCRI, IN IMPROVING THE QUALITY OF THE RAW MATERIALS FOR
THE MANUFACTURE OF CERAMIC TILES AND IN IMPROVING
PROCESS CONTROL PARAMETERS.
ONE OF THE IMPORTANT ACHIEVEMENTS OF THE INSTITUTE HAS
BEEN THAT IT HAS BEEN ABLE TO USE THE FLY ASH (A HIGHLY
POLLUTING WASTE PRODUCT OF THERMAL PLANTS) IN THE
MANUFACTURE OF CERAMIC TILES.
IT HAS DEVELOPED THE TECHNOLOGY FOR PRODUCTION OF BONE
CHINA UTILIZING THE CHINA CLAYS OF GUJARAT.
THIS TECHNOLOGY HAS BEEN TRANSFERRED TO 21 UNITS THE
TRAINING OF THE WORKERS IS CARRIED ON THE SITE WHICH HAS
RECEIVED VERY ENCOURAGING RESPONSE.
LINKAGES WITH R&D INSTITUTIONS:
mainly through CSIR Labs and SMES
ONE OF THE CASE EXAMPLES OF ACADEMIA – ENTERPRISE
LINKAGES IS THE ‘SONYA CERAMICS’ IN AHMEDABAD.
IN
COOPERATION WITH CGCRI, IT HAS BEEN ABLE TO IMPROVE THE
PROCESS TECHNOLOGY.
TODAY THE ENTERPRISE IS MANUFACTURING ABOUT 560
PRODUCTS - FROM THERMAL INSULATORS TO SEWAGE PIPES. IT
HAS TAKEN 9002 ISO STANDARD AND WORKS IN CLOSE
COOPERATION WITH THE CUSTOMERS. TODAY THE PRODUCTS OF
THIS ENTERPRISE ARE BEING EXPORTED TO 15 COUNTRIES IN USA
AND EUROPE.
NUMBER OF TECHNOLOGIES DEVELOPED BY INDUSTRIES
THROUGH PARTNERSHIP WITH R&D AGENCIES IN 10
YEARS TILL 2005
Type / Discipline
Name of Industry
R&D Investment
(% of Annual
turnover)
New Tech
developed through
Partnership in last
10 yrs
Tech inducted /
commercialised from
R&D agencies
in
last 10 yrs.
>100 Cr.
----
---
10-15%
2
0/1
Rs. 1.55 Cr. during
2003-04
3
3/3
Rs. 100 lakhs
15
15 / 10
Pharma
Nicholas Piramal India Ltd.
Biotech
Shantha
Hyderabad
Drugs
J. Mitra & Co. Ltd., Delhi
Biotech
Dalmia
Centre
Coimbatore
Microbiological &
Chemical Sc.
Arbro Pharmaceuticals Ltd., New
Delhi
17.59 lakhs
----
NA
Biopharma /
Biotech
Millipore India Pvt. Ltd., Bangalore
NA
NA
NA
Agriculture
Sungro Seeds Ltd., Delhi
----
100 new products
100 / 100
Petrochemical
Production
Indian Petro-chemicals Corp. Ltd.,
Vadodra
Rs. 10 Cr.
8
8 /8
Chem (Agro)
Rallis Research Centre, Bangalore
Rs.10 Cr.
Nil
Nil
Chemical
Godavari Sugar Mills Ltd., Mumbai
Rs.80 lakhs
2
Chemicals, drugs
Rubamin Limited, Vadodra
--------
------
-------
Chemicals & Paints
Mathur
Corr-Tech
Coimbatore
Rs 3 lakhs
6
------
Biotechnics
for
(P)
Ltd.,
R&D,
Ltd,
Type / Discipline
Name of Industry
Mines
Division,
R&D Investment
(% of Annual
turnover)
New Tech
developed through
Partnership in last
10 yrs
Tech inducted /
commercialised from
R&D agencies
in
last 10 yrs.
~ Rs 150 Cr.
1
1/0
~Rs.15 Cr.
(T/O Rs. 400 cr.)
Nil
Nil/Nil
~Rs 434.01 lakhs as
on 31.3.2005
3
1/1
Rs.44 lakhs
Many
Nil/Nil
Steel
Tata
Steel
Jharkhand
Engineering
Tata Refractories Ltd., Orissa
Electro-chemical
High Energy Batteries India Ltd,
Pudukottai
Consumer
Electronics
Ahuja Radios, New Delhi
Electronics
Omtek
Electronics
Bhubaneswar
Engineering
Basic Technology (P) Ltd., Kolkata
Rs. 20 lakhs
10
6/4
Mines
Satna Cement Works, Satna
~Rs.1.5 lakhs
Nil
Nil/Nil
Engineering
St. Josephs Tiles, Ernakulam
--------
1
1/1
Engineering &
Infrastructure
Shriram Energy
Hyderabad
------
1
Nil/Nil
Engineering
Abaqus Engg. India, Chennai
Nil
Nil
Nil/Nil
Engineering
Ador Fontech. Ltd., Bangalore
Nil
Nil
Nil/Nil
Atomic Energy
Indira Gandhi Centre for Atomic
Res., Kalpakkam
----
----
----
(P)
Systems
Ltd.,
Ltd.
Rs. 50 lakhs
(T/O Rs.1.50 cr.)
Nil (36 Self
developed
Tech.)
36 / 13
(Source: BANSAL, Rama Swami (2005): ‘R&D Agency – Industry Partnership for Technology Development and Transfer in
Indian Context’. PhD Thesis, Birla Institute of Technology and Science, Pilani, Rajasthan
3. KNOWLEDGE FLOWS AND
TECHNOLOGY DATABASES
MOST OF THE SMES DO NOT HAVE ACCESS TO WELL RESEARCHED
TECHNOLOGY DATABASES
MAJOR TECHNOLOGY INFORMATION DATA BANK IS THE NATIONAL
RESEARCH AND DEVELOPMENT CORPORATION (NRDC), WHICH SERVE AS
AN IMPORTANT LINK BETWEEN RESEARCH AND SMEs.
NRDC ACQUIRES, EVALUATES, DEVELOPS AND TRANSFERS ALL
WORTHWHILE TECHNOLOGIES GENERATED AT THE VARIOUS NATIONAL
LABORATORIES.
THE TECHNOLOGIES AVAILABLE WITH NRDC FOR COMMERCIAL
EXPLOITATION COVER A WIDE RANGE OF PRODUCTS, NAMELY, DRUGS AND
PHARMACEUTICAL, PESTICIDES AND HERBICIDES, PLASTICIZERS, RESINS,
ELECTRO-CHEMICAL PRODUCTS, METALS, PAINTS AND VARNISHES,
LEATHER CHEMICALS AND AUXILLIARIES, ELECTRICAL AND ELECTRONIC
GOODS, BUILDING MATERIALS, ETC.
IT PROVIDES A VERY COMPREHENSIVE INTERNATIONAL PATENT
SEARCH AND ALSO HAS A FEW RENOWNED INTERNATIONAL DATA
BASES ON LINE FOR CARRYING OUT SEARCH.
AN IMPORTANT DATABASE ON LOCAL INNOVATIONS IS THE “HONEY
BEE DATABASE” SUPPORTED BY SRISTI WHICH IS ONE OF THE
BIGGEST STORES OF KNOWLEDGE ON LOCAL INNOVATIONS BY
FARMERS AND ARTISANS COVERING ABOUT 72 COUNTRIES. IT IS A
KNOWLEDGE NETWORK, WHICH POOLS THE TECHNOLOGICAL
SOLUTIONS DEVELOPED BY PEOPLE AROUND THE WORLD.
NETWORKING OF THESE DATABASES CAN BE OF IMMENSE USE TO
MITIGATE THE NUMEROUS TECHNOLOGICAL PROBLEMS OF THE
SMES
4. INTER FIRM LINKAGES,
Communication and Cooperation
AS MOST SMES LACK FINANCIAL RESOURCES, THE BEST WAY IS TO
ENTER INTO LINKAGES AND PARTNERSHIPS WITH OTHER
ENTERPRISES, ACADEMIA AND/OR R&D INSTITUTIONS.
OVER THE PAST DECADE, EMPHASIS IN THE CONCEPT OF
TECHNOLOGY TRANSFER HAS GRADUALLY SHIFTED TOWARDS
"CREATIVE PARTNERSHIPS" OR “STRATEGIC ALLIANCES” TO FORM
LEARNING ORGANIZATIONS.
LEARNING BY DOING
SHIFTING TO
“LEARNING BY INTERACTION’ IS AN IMPORTANT FEATURE OF
TECHNOLOGICAL UPGRADATION AND CAN ONLY HAPPEN WHEN
FIRMS COOPERATE AND INTERACT THROUGH STRATEGIC
ALLIANCES AND OTHER FORMS OF LINKAGES.
THE
CLUSTERS,
WHICH
OFFER
GOOD
OPPORTUNITIES FOR INTERACTION AND INDUSTRIAL
UPGRADING
THE COMMON FEATURE OF THESE NEW FORMS LIES
IN
THE
SHARING
OF
KNOWLEDGE
IN
TECHNOLOGICAL
CAPABILITIES
AND
IN
COOPERATIVE INTENTIONS,
THE DIVERSE FORMS OF ALLIANCES INCLUDE :
CLUSTERS,
S&T
PARKS,
ASSOCIATIONS,
INCUBATORS,CONSORTIA AND INDUSTRIAL PARKS
SUCH PARTNERSHIPS HAVE TECHNICAL EDUCATION,
TRAINING AND RETRAINING, INNOVATION, AND
SUSTAINABILITY AS INHERENT FEATURES.
NETWORKING / INDUSTRIAL DISTRICTS / CLUSTERS
A SIMPLE DEFINITION OF A CLUSTER SUGGESTS THAT IT IS A
NETWORK MADE FOR INFORMATION AND RESOURCE SHARING
BETWEEN PEOPLE.
CLUSTERS ARE DEFINED AS CONCENTRATION OF ACTIVITIES
BELONGING TO THE SAME SUB SECTOR.
SUCH CLUSTERS ARE A COMMON PHENOMENON IN ASIA.
Cluster Functions as WEB
COMMUNICATION, COOPEARTION and LINKAGES FOR
TRANSFER OF TECHNOLOGY and SHARING OF RESOURCES
BETWEEN SMEs
LEARNING BY DOING AND LEARNING BY INTERACTION
COMMUNICATION AND FEED BACKS FROM TOP TO BOTTOM
AND BOTTOM TO TOP
IMPORTANT
FOR
INCREMENTAL
TECHNOLOGICAL CHANGE
INNOVATION
AND
CLUSTERS APPROACH DEVELOPMENTS IN INDIA
138 INDUSTRIAL CLUSTERS
A LARGE NUMBER OF SMALL FIRMS ENGAGED IN SPECIALIZED
INDUSTRIES SUCH AS:
LOCKS AT ALIGARH,
LEATHER FOOTWEAR AT AGRA AND KANPUR; AGRA CLUSTER MAKES .15
MILLION PAIRS OF SHOES PER DAY WITH A PRODUCTION VALUE OF 1.3
M US$ AND EXPORTING SHOES WORTH US $ 57.14 MILLION PER YEAR.
COTTON HOSIERY AT CALCUTTA AND DELHI;
BLANKETS IN PANIPAT;
POWER LOOMS AT BHIWADI;
DIAMOND POLISHING IN SURAT.
WOOLLEN GARMENTS, BICYCLE AND BICYCLE PARTS, SEWING
MACHINE PARTS AND MACHINE TOOLS IN LUDHIANA;
LUDHIANA
CLUSTERS MAKE 95% OF COUNTRY’S WOOLEN KNITWEAR; 85% OF
SEWING MACHINES AND 60% OF BICYCLE AND BICYCLE PARTS.
PRINTING AND PRINTING GOODS, WATER PIPES AND BATHROOM
FIXTURES IN JALLANDHAR;
FOUNDRIES IN BATALA, ETC.
KNITWEAR CLUSTER IN TIRUPPUR, TAMIL NADU IS RESPONSIBLE FOR
85% OF INDIAN MARKET AND ITS EXPORT EARNINGS HAVE EXPANDED
FROM US$ 25 MILLION IN 1986 TO US$ 636 MILLION IN 1997. WHAT IS
INTERESTING ABOUT TIRUPPUR CLUSTER IS THAT IT IS ORGANIZED IN
A WEB OF SMALL WORK PLACES THROUGH WHICH THE ENTIRE TOWN
WORKS LIKE A LIVING INDUSTRIAL ORGANIZATION
DIESEL ENGINE CLUSTER-RAJKOT, GUJARAT, INDIA
RAJKOT DIESEL ENGINE INDUSTRY IS THE LEADER IN INDIAN DIESEL
ENGINE MARKET WITH MORE THAN 60% OF INDIA’S TOTAL DIESEL
ENGINE PRODUCTION.
THE INDUSTRY IS MADE UP OF SMALL-SCALE MANUFACTURERS AND
HAS ABOUT 400 FOUNDRY UNITS IN THE CITY.
IT EMPLOYS MORE THAN 40,000 WORKERS.
INDIA CONTINUED TO RELY ON THE INDIGENISED DIESEL ENGINES,
AND IS ALSO ABLE TO EXPORT TO DEVELOPING COUNTRIES
GERMAN MODEL OF ENTREPRENEURIAL INNOVATIONS

LEARNING BY DOING

LEARNING BY INTERACTION

LEARNING REGION
IN GERMANY THE AACHEN REGION HAS BEEN DESCRIBED AS
THE LEARNING REGION, AS IT HAS A UNIQUE NETWORK OF
ACADEMIA AND THE ENTERPRISE FOR CONTINUOUS
INNOVATIONS AND TRANSFER OF TECHNOLOGIES FROM
ACADEMIA TO THE ENTERPRISE.
THE AACHEN REGION HAS A TOTAL POPULATION OF 3,50,000. IN
THE REGION THERE ARE AT PRESENT 8000 COMPANIES, FOUR
UNIVERSITIES,
20
R&D
INSTITUTES
HAVING
50000
RESEARCHERS EACH.
A CONSIDERABLE PROPORTION OF NEW BUSINESSES IN THE
AACHEN REGION ARE SPIN-OFFS RESULTING FROM RESEARCH
STAFF MOVING FROM THE UNIVERSITY TO THE PRIVATE SECTOR.
MORE THAN 80 PER CENT OF THE NEW ENTERPRISES LAUNCHED
IN THE AACHEN TECHNOLOGY CENTRE (TZA) SINCE 1984 HAVE
ORIGINATED FROM THE IMMEDIATE ENVIRONMENT OF AACHEN
UNIVERSITY OF TECHNOLOGY.
The main features of this region are:

The companies in the cluster cooperate with each other to find
solutions to the problems.

Has strong linkages with the University of Aachen for finding out
high tech solutions.

Learning by doing has been the main characteristic feature in the
development of the company.

It also gives VOCATIONAL training to the students of the university.
EMILIA-ROMAGNA IN ITALY IS THE CHARACTERISTIC MODEL OF
INNOVATIVE SMES IN ITALY, AND IS ALSO KNOWN AS THE THIRD ITALY.
THE POPULATION OF EMILIA-ROMAGNA IS 3,924,352, APPROXIMATELY 7%
OF THE NATIONAL POPULATION.
THE REGION ACCOUNTS FOR 8.3 PERCENT OF NATIONAL EMPLOYMENT
AND NEARLY 9 PERCENT OF THE GROSS NATIONAL PRODUCT
THE REGION HAS THE THIRD LOWEST RATE OF UNEMPLOYMENT (4.5%
COMPARED TO THE NATIONAL AVERAGE OF OVER 11%) AMONG ITALY’S 20
REGIONS,
THE PRODUCTIVE SYSTEM IS CHARACTERIZED BY SMALL AND MEDIUMSIZED ENTERPRISES (SMES) (EMPLOYING AN AVERAGE OF 5.48 PEOPLE
PER ENTERPRISE),
WITH A HUGE NUMBER OF ARTISAN ENTERPRISES (126,639 OUT OF
304,947) AND
CO-OPERATIVES (7,923, INCLUDING 2,336 FARMING CO-OPERATIVES AND
1,187 LABOUR AND MANUFACTURING CO-OPERATIVES).
THE REGION COMPRISES OF NINE PROVINCES i.e. BOLOGNA, FERRARA,
FORLI-CESENA, MODENA, PARMA, PIACENZA, RAVENNA, REGGIO EMILIA
AND RIMINI.
CHARACTERISTICS ARE:
HORIZONTAL INTEGRATION
FORMATION OF ASSOCIATIONS
TO PROMOTE EXPORTS AND FORM BUSINESS ALLIANCES.
FOR EXAMPLE THE EMILIA-ROMAGNA REGIONAL FEDERATION
OF THE NATIONAL CONFEDERATION OF THE CRAFT AND THE
SMALL AND MEDIUM ENTERPRISES (THE EMILIA-ROMAGNA
CAN) REPRESENTS AND DEFENDS ALL INTERESTS OF CRAFT
FIRMS, OF SMALL AND MEDIUM ENTERPRISES AND WORKERS IN
RELATIONS WITH PUBLIC ADMINISTRATION, AND WITH
POLITICAL, SOCIAL AND ECONOMIC ORGANIZATIONS.
THE EMILIA-ROMAGNA CAN HAS SET UP AN EXTRAORDINARY RANGE
OF SERVICES AND BENEFITS WHICH INCLUDE:
ASSISTANCE IN THE STARTING UP OF NEW BUSINESSES
ASSISTANCE AND CONSULTANCY TO ENTERPRISES RUN BY YOUNG
ENTREPRENEURS
BUSINESS, MANAGERIAL, VOCATIONAL TRAINING
INFORMATION AND CONSULTANCY IN
INTERNATIONALIZATION AND MARKETING
EXPORT,
PROMOTION,
ASSISTANCE IN THE AREA OF QUALITY CONTROL CERTIFICATION
TAX SERVICES
ASSISTANCE IN CONTRACTS
THE SUSSEX INNOVATION CENTRE, SCIENCE PARK SQUARE,
BRIGHTON, UK
THE SUSSEX INNOVATION CENTRE, OPENED IN MAY 1996, PROVIDES
SUPPORT FOR THE CREATION AND GROWTH OF TECHNOLOGY AND
KNOWLEDGE BASED COMPANIES IN SUSSEX.
THE CENTRE IS A NOW THRIVING BUSINESS ENVIRONMENT FOR NEARLY
30 HIGH GROWTH COMPANIES.
THE BASIC FEATURES OF THE SUSSEX INNOVATION CENTRE ARE:
THROUGH AN INITIAL PUBLIC INVESTMENT OF OVER 2 MILLION THE
SUSSEX INNOVATION CENTRE WAS DEVELOPED AS A PURPOSE BUILT
BUSINESS INCUBATION FACILITY BASED ON THE CAMPUS OF THE
UNIVERSITY OF SUSSEX.
RENT LEVELS ARE SET WHICH, WHILE REFLECTING THE PRIME
LOCATION AND EXCELLENT FACILITIES OFFER THE TENANT COMPANIES
AN IDEAL, FLEXIBLE AND RELATIVELY INEXPENSIVE ENVIRONMENT TO
GROW THEIR BUSINESS.
THE INNOVATION CENTRE SUPPLEMENTS ITS INCOME THROUGH
UNDERTAKING PROJECTS, CONSULTANCY, SPONSORSHIP AND
RUNNING EVENTS WHICH ARE CONSISTENT WITH ITS CORE
OBJECTIVES OF INCUBATION, COMMERCIALIZATION AND TO ACT
AS A FOCUS FOR NEW TECHNOLOGY COMPANIES IN SUSSEX.
THE UNIVERSITIES GAINS THROUGH AN INCREASED FOCUS ON
COMMERCIALIZATION, A HIGHER PROFILE WITHIN THE LOCAL
BUSINESS COMMUNITY AND A CLEAR ROUTE FOR ACADEMIC
SPIN OFFS.
The BEST Approach
CLUSTER WEB
COMMUNICATION
COOPERATION
FOR LEARNING BY
INTERACTION
TECHNOLOGICAL
INNOVATION
INTERNATIONAL
COMPETITION.
COMPETITION
NAM S&T Centre