Innovation in India close to a tipping point

The New York Times article highlighting lack of an Apple or Google in India quoted 1. a financial system reluctant to invest in unproven ideas, 2. an education system that emphasizes rote learning over problem solving and 3. a culture that looks down on failure and unconventional career choices as primary reasons.

In 2006, while the Indian patent office received approx 2000 patent application from residents, Indians in the US contributed to 13.7% or 5760 patent applications. Increasingly immigrant Indians plan to return back and expect China and India to generate innovative products and services during the next 25 to 50 years. Reverse brain drain is now a reality.

Increasingly, Indian movies are highlighting the inherent entreprenurial energy and the lacuna of the Indian educational system. Amir Khan's latest movie 3 Idiots has become the highest grossing movie in Hindi cinema and underlined the inadequacies of the Indian education system. 'All Izz Well' has become a nationwide clarion call. Amir's 2007 movie Taare Zameen Par equally effectively drew the nation's attention to the role of a teacher and the education system to foster creativity. These movies have led to a quiet revolution and are bringing about change. The Harvard Law educated HRD minister Kapil Sibal has vowed to complete his reform of the education system in 2010 through 6 major legislations 2 of which have already been approved.

Niall Ferguson academic historian at Harvard and most recently author of Ascent of Money recently commented "Whereas in India, all that is really needed, and I know this sounds terribly simplistic, is improving primary and secondary education for a majority of people and improving infrastructure. And then let the markets rip. Indians are very entrepreneurial. Everywhere you go, people are selling stuff, even if it is only a pile of spices. I think unlocking the entrepreneurial energy of India will lift a large number of people out of poverty"

Innumerable practical innovations to address the growing Indian market and capitalize on the large fortune at the bottom of the pyramid are now coming to market. HP Labs India was established in February 2002 with the principal focus on creating new technologies for addressing the IT needs of the next billion customers for HP.

Increasingly, parents are supportive of unconventional career choices. IIMs are encouraging students to start ventures knowing if their ventures fail they can participate in the following year final placements.

Several of the Policy recommendations for improving availability of risk capital to early stage ventures are currently being implemented.

Innovation in India is hard....but increasingly possible and close to a tipping point.