Orientation cum Training Session

Session 1: Orientation and Adoption of NISP at HEI Level

Date: 7th August 2020; Time: 03.00 PM – 5:00 PM

 Smart India Hackathon
Initiatives of
Institutions’ Innovation Council MHRD’s
Innovation
Atal Ranking of Institutions on
Smart India Hackathon
Cell
Innovation Achievements

National Innovation and Start-up

NISP
Policy 2019 for Students & Faculty

Hackathon
International Hackathons
 Entrepreneurship – Theories & Concepts

• The word entrepreneur itself derives from the French verb

entreprendre, meaning “to undertake”.

• In 1723, Irish–French economist Richard Contillon coined the term

Entrepreneur (self-employment and Risk takers)

• in 1890, Alfred Marshall & Frank Knight have added Leadership and
recognized the need of entrepreneurship through organization, as a
fourth factor of production.

Goods & Services = f ( Land, labour, Capital, Entrepreneur)

 Mainstreaming Entrepreneurship

• In 1934, Joseph Schumpeter’s modern definition of an

entrepreneur; added Innovation; less on Risk Takers

“Entrepreneurs as innovators who implement entrepreneurial change

within markets by identifying market opportunities and using
innovative approaches to exploit them”

• 5 manifestations of Entrepreneurial Changes

• Introduction of a new (or improved) Good & Services
• Introduction of a new method of production
• Opening of a new market
• Exploitation of a new source of supply
• Re-engineering/organization of business management processes.
 Mainstreaming Entrepreneurship

• In 1985, Peter Drucker refined the definition of entrepreneurship

“Not merely the creation of a new organization, also include any

individual who starts a new business venture is an entrepreneur;
even those that fail to make a profit”

• Entrepreneurs Vs Businessmen
 Key Entrepreneurial Characteristics

• Motivation: The enterprising person is highly motivated, energetic, and has a capacity for
hard work.

• Creative tendency: The enterprising person is restless with ideas, has an imaginative
approach to solving problems, and tends to see life in a different way to others.

• Calculated risk-taking: The enterprising person is opportunistic and seeks information and
expertise to evaluate if it is worth pursuing the opportunity which will usually involve some risk.

• Locus of control: The enterprising person has an internal rather than external locus of
control which means that they believe they have control over their own destiny and make their
own 'luck'.

Sally Caird and Mr Cliff Johnson, 1987

 Productive Vs Unproductive Entrepreneurship
- Productive entrepreneurship refers to Schumpeter’s five types of innovation – introducing
new products, new processes, new markets, new supplies and new organizations (William
Baumol).

- Unproductive entrepreneurship refers to rent seeking activity such as lobbying government

for favors, taking legal actions to harm competitors or conducting military activity

- Countries with cultures and institutions that reward unproductive entrepreneurship will
channel more of their entrepreneurial efforts to rent-seeking activities, and consequently the
economies will perform poorly

- How the entrepreneur acts at a given time and place depends heavily on the rules of the game
or the reward structure in the economy

- Thus, the allocation of entrepreneurship between productive and unproductive activities can
have a profound effect on the innovativeness and subsequent performance of the economy
Relationship Between Entrepreneurship and Economic Development
35
◆ GH
◆ ZM

Percentage of 18-64 Population Involved in Early-Stage

◆ AO
◆ UG
30
◆ PE R2 = 0.51
25
Entrepreneurial Activity

◆ EC
◆ CO
20
◆ BR
◆ CL
◆ GT
15 ◆ ME TT ◆
◆ CN ◆ ◆ AR
CR
◆ IR
◆ JM UY◆ ◆ IS
10 LV◆ ◆ SA
PK◆ BA ◆ ZA ◆TR HU ◆ TW ◆
AU
◆ ◆ MK ◆ NL
◆ IE ◆ US
NO◆
◆ KR
◆ IL FR ◆UK ◆
EG ◆TN ◆ ◆GR ◆
MY
◆ ◆ HR ◆ SE ◆
5 ◆ ◆ ◆ ES ◆ SW
◆ RU ◆ ◆ DK
RO SI
PT ◆
IT BE

0
0 10 20 30 40 50 60
GDP Per Capita in Purchasing Power Parities ($), in Thousands
India 9,026.867 PPP Intl $ in Mar 2020
Source: GEM Total Early-Stage Entrepreneurial Activity Rates and Per Capita GDP 2010
 Global Start-up Landscape
• India positioned 3rd and competing with Israel

Govt. Focus & Country Specific Indices =

f[Government Initiatives (Govt. Polices,
Govt. Funding), Country Specific Indices
(Global Innovation Index, Ease of Doing
Business)]

Start-up Activity Index = f[Landscape (Total Start-ups, Start-ups Per Capita,

Acquisitions), Unicorns Analysis, Investors Ecosystem & Funding, Advanced Tech Focus]
Entrepreneurial Attitudes

Entrepreneurial Abilities

Entrepreneurial Aspirations
 Components of the 6 P's of Policy
Depict the complex and nonlinear nature of policy

• Challenges can be found in each of the six “Ps.”

• If a policy problem was not well articulated

through adequate policy analysis.

• The problem is at the center of policymaking.

Problems requiring policy attention abound and
can be identified from many sources.

• The Process of policymaking. The process of

policymaking includes: Policy Analysis
• Framing the “problem” (issue framing)
• Getting the issue on the policy agenda
(agenda setting)
• Formulating the policy (policy formulation)
“in order to complete at least one cycle of formulation, implementation, and reformulation and to obtain a
reasonably accurate portrait of program success and failure,” (Sabatier and Jenkins-Smith, 1993)
https://www.policynl.ca/
4. National Innovation and Startup Policy –
Dimensions & Thrust Areas for HEIs to Implement

• Dimension & Thrust Areas

• Policy Provisions – HEIs to Adopt

• Where to Start
National Innovation and Start-up Policy 2019 for
Students & Faculty
• NISP 2019 was launched by Hon'ble Minister of Human Resource Development on 11 September
2019.
• The policy intends to guide HEIs to promote students’ and faculty driven innovations & startups.
• It will be instrumental in leveraging the potential of student’s problem solving & entrepreneurial
mind-set and promoting a strong intra and inter-institutional partnerships.
 Thrust Areas of NISP 2019
1
A. HEIs Strategies & A1. Creating Innovation A2. Building
Governance for Pipeline and Pathways for Organizational Capacity,
Promoting Innovation & Entrepreneurs Human Resources and
Entrepreneurship Incentives
A3.
Collaboration
2 B. Norms for Faculty & Co-creation
B1 & B2. Incentivizing
Students Driven Faculty & Students for B3. Norms for Faculty and Business
Innovations and Entrepreneurship Startup Relationship
Startups and
Knowledge
3 4 5 Exchange
E. Pedagogy & Learning
D. IP Ownership Rights Interventions for
C. Incubation & Pre-
for Technologies Supporting Innovations
Incubation support
Developed at HEI & Startups

6 F. Entrepreneurial Performance Impact Assessment NISP 2019, By Dipan Sahu

Highlighting features of the policy

Academic break for a semester/

Creation of ‘Innovation fund’ for year to work on their startups
supporting innovative projects and
Start-ups by allocating minimum Credits for working on innovative
1% of institution’s total budget prototype/ business models

2% - 9.5% Equity/ stake in

startup/ company by Institute’s Services to be offered by
incubator institution in lieu of equity, fee
Complete Ownership of IPR by based or zero payment model
the inventors in case of non-usage
of institute’s facilities/ resources
 Part - I

A. HEIs Strategies & Governance for Promoting Innovation & Entrepreneurship

A1. Creating Innovation Pipeline and Pathways for Entrepreneurs.

A2. Building Organizational Capacity, Human Resources and Incentives.

A3. Collaboration Co-creation and Business Relationship and Knowledge

Exchange.
A. Strategies & Governance for promoting Entrepreneurship
• HEIs should formulate University/HEI level Document in accordance with the NISP and State Startup Policies.

• HEIs should Achieve through Mission Statements rather than Stringent Control System

• A Sr. Faculty (at the level of Dean/Director/Equivalent Position) with less hierarchy and autonomy must drive
the Entrepreneurial Agenda.

• Intra and Inter institutional Relation to promote E&I agenda & Institute can provide services and facilities to
outsider entrepreneurs too.

• Resource Mobilization Plan Should be in Place

• Own Resource: 1% fund of the total annual budget
• Raising fund from Diverse Sources ( State and Central Agencies)
• Incubation Fund support under CSR, Section 135 of the Company Act 2013
• Sponsorship, Donation from Alumni Network

• All HEIs should join the Institution’s Innovation Council (IIC) network and participate, participate in Smart
India Hackathon (SIH) and participate in Atal Ranking of Institutions Innovation Achievement (ARIIA)
 A1. Creating Innovation Pipeline and Pathways for Entrepreneurs
• HEI to ensure maximum student should participate and go through pre-incubation process of Problem
identification, Solution development, Proof of Concept validation and prototype development, business
model and proposal development.

• HEI should link and collaborate their Incubation unit with external agencies and ecosystem enablers and
provide network support to incubate startups.

• Connecting student entrepreneurs with incubate startups for internship, experience sharing and
encouraging participation of students in innovation and business plan competitions and organize such
competitions/hackathons on campus.
 A2. Building Organizational Capacity, Human Resources and Incentives
• Institute should recruit staff that have a strong innovation and entrepreneurial/industrial experience,
behavior and attitude, this will held in fostering the I&E agenda and culture in HEI.

• Faculty and departments of the institute have to work in coherence and cross departmental linkage and
maximum utilizations internal resources and knowledge.

• Faculty and staff should be encouraged to do courses/trainings/certificates on innovations,

entrepreneurship and IPR.

• To retain talent, institute should develop academic and non-academic incentives and reward mechanism
for all staff, faculty and stakeholders.

• A performance matrix should be developed and used for evaluation as part of annual performance and
contribution of faculty/staff towards achieving I&E agenda should be part of matrix.
A3. Collaboration, Co-creation and Business Relationship and Knowledge
Exchange
• Institute should develop a policy or guideline document for forming and managing the relationships with
external stakeholders including private industries.

• Knowledge exchange through collaboration and partnership should be made as part of institutional policy.

• Mechanisms should be devised by the institute to ensure maximum exploitation of entrepreneurial

opportunities with industrial and commercial collaborations.

• Knowledge development should be done by the institute trough development of innovation knowledge
platforms using ICT capabilities. Repository of ideas, PoCs, Innovations and Startups can be managed
through the platform.
 Part –II

B. Norms for Faculty & Students Driven Innovations and Startups

B1. Incentivizing Students for Innovation and Entrepreneurship

B2. Incentivizing Faculties & Staff for Innovation and Entrepreneurship

B3. Norms for Faculty Startup

B. Norms for Faculty and Student Driven Innovations & Startups

B1. Incentivizing Students for Innovation and Entrepreneurship

HEIs should establish process/clear guideline and mechanism for easy creation and nurturing of startups/enterprises
by students (UG, PG and PhD), faculty and staff of HEI by setting up a committee and working committees on following:

• Allow students to setup Startup ( Social and tech and non-tech ) or working part-time for the startup while
studying/working as intern

• Allowing students to earn credit for working on Innovative prototypes/business Models.

• Student Innovators/entrepreneurs may allowed to opt for startup in place mini project /major project, seminar
and summer training etc.

• Allow student entrepreneurs to take a semester break/year break to work o their startup

• Allowing student entrepreneurs/innovators to sit for the examination. (institute need to set up minimum
attendance and after reviewed by committee on case to case basis).

• Allowing Student entrepreneurs to use the address of Hostel (or) pre-incubation and (or) incubation unit to
register their venture while studying at HEI.
B2. Incentivizing Faculty for Innovation and Entrepreneurship
• Allowing faculty to start Startup based on the technology developed in the lab at the institute or previously
developed somewhere else but have ownership on IP, if technology based.

• Allow faculty and staff to take off for a semester/year as sabbatical/unpaid leave/casual leave /earned
leave for working on startup and come back.

• No restriction on shares that staff and faculty can take as long as they don’t spend more than 20% of office
time on the startup in advisory or consultants role and don’t compromise with their existing academic and
administrative work or duties.

• In case faculty/staff is drawing salary form institute, institute's stake/equity on startup should be limited to
20% of total share of faculty/staff or 9.5% of total stake which ever is minimum.
 B3. Norms for Faculty Startup
• Role of faculty while teaching may be as owner/founder/co-founder/Director-
promoter/adviser/mentor/consultant but cant take role of employee as CEO or other managerial role in
his/her startup and cant draw salary from startup and cant accept gifts from his own startup. He/she can
take share on profit and dividend only if any from startup as owner/shareholder.

• Faculty must clearly separate and distinguish on-going research at the institute from the work conducted
at the startup/company.

• In case selection for acceleration or incubation, he may take sabbatical leave or other leave up to one
semester or year or more based on committee recommendation.

• Faculty must not involve research staff or other staff engaged in academic projects of institute in activities
at the startup
 Part –III

C. Incubation & Pre-Incubation support Facility Creation and Access

D. IP Ownership Rights for Technologies Developed at HEI

E. Pedagogy and Learning Interventions for Entrepreneurship Development

F. Entrepreneurial Performance Impact Assessment

C. Incubation & Pre-Incubation support Facility Creation and Access
• Creation of Pre-Incubation and Incubation (SPV – Section 8 of Company Act or Society Act)
• Pre-incubation and Incubation Support: Attach with nearest Incubation Unit if not exist in campus
• Promotion and intensification of Technology Commercialization efforts. Allow Licensing of IPR from
Institute to Startup incubated at Incubation Unit.

• Facility should be accessible to 24x7 to student, staff and faculty of all discipline and department across the
institute.

• Provision and streamline relevant services and mentoring support through pre-incubation/incubation units
in-return for fees, equity sharing (or) zero payment basis.

• In return of services offered (Space, Infrastructure, mentorship, seed fund, accountant and legal and patent
support) and use of facilities at institute/incubation unit may take 2-9.5% equity/stake in the
startup/company incubated.

• In case of compulsory equity model, startup may be given a cooling period of 3 months to use the incubation
services on rental basis to take final decision
 D. IP Ownership Rights for Technologies Developed at HEI
• If fund and (or) resource of HEI used substantially, then IPR should be made jointly by Institute and
inventor and license together and revenue sharing among the parties.

• If any one of inventor want to start a startup based on the technology developed as above, then it can be
licensed to inventor with royalty would be no more than 4% of sales price, preferably 1-2%, unless it is
pure software product.

• If it is in form of shares, then it will again between 1-4%. In case software share divide is based on
mutually decided between the institute/incubation unit and incubate company.

• On any dispute on IPR ownership and revenue sharing and licensing, then a five member committee
setup at HEI will look into the matter and recommend.

• Interdisciplinary research and publication on startup and entrepreneurship should be promoted by

HEIs.
E. Pedagogy and Learning Interventions for Entrepreneurship Development
• Adopt and produce desirable learning outcomes as part of curricular, co- curricular and extra curricular level.
• Create and publish tool kit on innovation and startup and IPR for open access to students and faculties.
• Student clubs/bodies on innovation and IPR and Startup must be established and engaged.

• HEI should start recognizing and giving Innovation and Entrepreneurship awards to best achievers form campus
annually. And confer gold medal kind of rewards during convocations ceremony.

• Teaching on tolerating and encouraging failures.

• Creating awareness among students and teaching methods should include case studies of real business stories of
failure and success, experiential learnings.

• Pedagogy changes nee to be done to ensure that maximum number of students projects and innovations are based
around life challenges. It should be constantly reviewed and updated.

• Start a part time or full time MS/MBA/PGDM in Innovation , Entrepreneurship and Venture Development Course to
be offered through Incubation Unit as per the AICTE guideline.
 F. Entrepreneurial Performance Impact Assessment

• Performance Analysis of services and facilitates on regular basis

• Development of key performance indicators

• Focus on Input, process, output, outcome and impact level