Last year, Indian Prime Minister Manmohan Singh declared the years 2010-20 as India’s Innovation Decade. He followed this up by appointing a high profile National Innovation Council to evangelize the cause of innovation and spread an innovation culture across the country. Can we expect India to emerge as the next Silicon Valley? Are we going to see the likes of a Google or an Apple emerge in India in the next ten years?
WHY INNOVATION?
First, let’s try to understand why there is this sudden emphasis on innovation. As is well known, India made a major effort to cut through red tape and “unshackle the tiger” a little over twenty years ago. The economy responded well, and we have seen a healthy annual growth rate averaging close to 7 percent over this period. Companies active in the Indian market – whether Indian or foreign – benefited from this growth as, to quote our Chinese neighbours, “the rising tide lifted all boats.” However, while opportunities for growth still exist, some product categories are becoming saturated, or at least the most lucrative customers have already been tapped. This is true in mobile services, for example, where penetration has already reached 70 percent. This means that to sustain growth and profitability, companies will have to look at new ways to excite customers. Ergo…innovation is on the corporate agenda.
To read the full, original article click on this link: Silicon Valley to India: Build an innovation ecosystem and good things will come - Ivey Business Journal
Author:Rishikesha T. Krishnan
