Technological
UNIT 2 TECHNOLOGICAL INNOVATION Innovation and
Skill Development
AND SKILL DEVELOPMENT
Structure

2.0 Objectives
2.1 Introduction
2.2 Innovation
2.2.1 Meaning of Innovation
2.2.2 Meaning of Invention
2.2.3 Meaning of Creativity
2.2.4 Difference among Creativity, Invention and Innovation
2.2.5 Importance of Innovation
2.3 Technological Innovation
2.3.1 Process of Innovation
2.3.2 Types of Innovation
2.4 Make in India v/s Made in India
2.5 Digital India
2.6 Skill Development: Approaches and Strategies
2.6.1 Skill Development Initiatives
2.6.2 National Skill Development Corporation
2.7 Start-up India and Incubator
2.8 Let Us Sum Up
2.9 Key Words
2.10 Terminal Questions

2.0 OBJECTIVES
After studying this unit, you will be able to:
x discuss the concept of innovation and explain different types of
innovation
x describe the meaning of technological Innovation
x examine the issues and challenges of innovative activities
x describe the concept of technological innovation
x explain the various government initiatives for skill development; and
x identify government skill development approaches in India.

2.1 INTRODUCTION
Technology is the most widely used word globally and has taken different
forms. Technology includes invention, innovation, R&D, technology
development, technological strategies etc. With new technological development
coming up everyday, ‘Innovation’ too has gained importance. It is being 29

 
Foundation of discussed in every walk of life. The concept of innovation in unorganised
Indian Business form has existed for ages but has developed in organised form only in the 20th
century. This unit focuses on different aspects of innovation and
technological innovation and how does it help in facilitating various activities
in different sections of society. In this unit you will learn how has technology
evolved and how has the concept of innovation taken its present form. In
subsequent sections you will learn various aspects of innovation and different
types of innovation. You will also learn concept of technological innovation
and various government initiatives for skill development. This unit will also
help you to identify such challenges. The process of innovation will help you
in understanding the role of innovation in the present context and how it can
help the business in developing competitive advantage. You will also learn
various government initiatives for skill development which has facilitated the
innovative activities.

2.2 INNOVATION
Innovation in its current connotation is a "new idea, creative thoughts, and
new imaginations in the form of mechanism or technique". Innovation refers
to the application of better solutions that meet new necessities, tacit needs, or
existing market needs. Thus Innovation involves purposeful application of
information, thoughts and scheme in deriving better or dissimilar values from
resources, and includes all procedure by which new ideas are created and
transformed into constructive products.

2.2.1 Meaning of Innovation

The word innovation comes form the latin word LQQRYDWLRQHP noun of action
from innovare, is to make something new. Now an important question arises:
Can a bright idea be used only once? The answer to this question is ‘No’.
there are many ideas which have been used for centuries and can be revised
with a new thought process and more flexibility. Take the example of a tooth
brush. We all have been using it since our childhood. If we go back a little
and try to think, we will see that our ancestors used neem sticks (datoon) for
cleaning their teeth. The ‘idea’ was to clean teeth and over the period the
neem stick has evolved into a tooth brush. The same idea is now used in the
form of battery operated tooth brushes where you do not have to manually
clean the teeth. If we see the whole process, we find that at different ages and
at different stages the same idea was used in different innovative ways.
Another example can be of mobile/ cell phones. This is an example where an
idea has taken different forms and evolved in the present form. A decade
back no body would have thought of receiving mails on a mobile phone. But
now it is an integral part. Now, the question arises ‘what is an innovation?’ If
we go by the business dictionary ‘Innovation is the process of translating an
idea or invention into a good or service that creates value for which
customers will pay’ (business [Link]). At this point another question
arises ‘How can an idea be called as an innovation?’. An idea can only be
called an innovation when it is replicable, economical and satisfies a specific
need e.g. nasofilters. Nasofilters is a respiratory nasal filter that sticks to your
nose and prevents entry of harmful air/pollutants (PM 2.5) and they are
economical than the traditional anti pollution masks. There are number of
such innovations.
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Technological
2.2.2 Meaning of Invention Innovation and
Skill Development
The words innovation and invention partly cover semantically but are
actually quite different. Invention can refer to a type of musical masterpiece,
a false hood, a discovery, or any product of the imagination. The sense of
invention most probable to be confused with innovation is “a device,
contrivance, or process originated after study and experiment,” frequently
amazing which has not beforehand been in existence.

2.2.3 Meaning of Creativity

Creativity is the act of turning new and creative ideas into reality. It is
featured by the ability to recognise the world in new ways, to find unknown
patterns, to make connections between apparently unrelated phenomena, and
to gather solutions. Basic elements of the concept of creativity include:
intelligence, intensive interest, knowledge, originality (ideas), creative
instinct, non-conformity, courage, and persistence.

2.2.4 Difference among Creativity, Invention and Innovation

Invention is an idea for a novel product or process. Innovation is the
introduction of new products, processes or services into the market place.
Technological innovation is a sub-set of innovation i.e. the introduction of
new products, processes or services based on new technologies. The
technological innovation begins with invention. We will discuss
technological innovation in the subsequent section. The first step is the idea
of the invention and the research to reduce the idea to practice. This often
results in a functional proto-types, which can be used for filing a patent. The
next step is the research and development of the proto-type into a
commercially designed product. Finally, the product is produced and sold.

The distinction between invention and innovation is an important one, for the
transformation from ideas into a successful product is actually difficult. This
transformation is the heart of the complex process of innovation. The hard
fact is that only a few inventions are successfully innovated, with fewer
inventions developed into new products, and still fewer new products succeed
commercially.

Table 2.1: Difference among Creativity, Invention and Innovation

S. No Creativity Invention Innovation
1. Creativity is novel ideas that Creating something Making the invention
are communicated, useful, and new into a product form
appealing.
2. Creativity is a fuzzy idea and A new to the world Innovation is about
can not be clarified until it is discovered or changing a pattern for
made into a prototype created doing something

3. Based on thinking up new Based on primary Based on broad set of

thing scientific skills strategic marketing and
technical skills.

The above discussion clearly shows that innovation refers to the introduction
of a new product. It basically improves an existing concept or idea using a 31

 
Foundation of step-wise process to create a product which is commercially viable.
Indian Business Innovation helps an idea to develop into a successful concept. This requires a
specific process. For an innovation to be successful one must understand the
process of innovation thoroughly and have a strong support system. Before
we discuss the process of innovation, let us see the importance of innovation.

2.2.5 Importance of Innovation

Innovation helps in solving problems e.g. providing customer services
virtually (using online complaints, suggestions etc). It also in new ways , for
example helps in adapting to change to the situations where rapid changes are
happening like in technological arena. This also helps the business to remain
relevant. The opportunities available to businesses worldwide due to
globalisation can be tapped using innovation. It is important for the
businesses to innovate so as to enter the foreign markets with new products.
Innovation helps organisations to face the competition. We all know that the
world is becoming more and more competitive. To sustain in the global
market one must make strategic and innovative moves. Innovation is
important and critical to ensure smooth running of organisations due to
evolving work place dynamics. As you are aware that the tastes and
preferences of customers keep on changing, therefore, innovation facilitates
in satisfying the consumers in new ways.
It is true that innovation is important but it also has certain challenges and
risks associated with it. Technological failure is one of the major challenges
of innovation. To overcome this challenge, it is important for the
organisations to carry out number of trials for the new product before it is
implemented. The other risk is the financial burden on the organisation.
Innovation comes with a cost. Usually an innovative product gives the returns
in the long run, therefore the organisation face a major challenge of finance.
The organisations, therefore, are required to assess their financial position
before taking up any innovative procedure. The other challenge is the market
failure. It is very much possible that an innovative product despite many trials
does not give the returns as expected. Redundancy is another challenge for an
innovative product. The market changes constantly with new technology
coming up every now and then. By the time the innovative product is
launched in the market, it becomes redundant due to technological up-
gradation. Therefore , it is imperative for the organisations to keep abreast
with the technology to avoid such risks. Lack of structural and financial
capacity of implementation is another challenge for organisations. This
challenge is usually for the start-ups as they do not have a sound base. In this
case they can look for the partners who are sound. Organisational risks are
associated with innovation. Usually an organisation tend to focus all its
attention on the innovation. This hinders day to day activities of the
organisation. Therefore, it is important for organisations to have separate
innovation centres so that the daily activities of the organisation are not
hindered. There are unforeseen risks associated which are unprecedented like
political events etc. The organisations need to have a contingency plan for the
same rather than being over ambitious. The challenges are definitely a part
and parcel of an organisation but when overcome, these turn into
opportunities. Innovation does help the organisations in many ways. It
provides experience to the organisation. It, therefore, becomes more creative
and the innovative organisations. Innovation does provide name and
32 recognition to the innovating organisation.


Technological
2.3 TECHNOLOGICAL INNOVATION Innovation and
Skill Development
Let us start with the definition of technology. Though there are many
definitions of technology and it is difficult to find one unique definition for
technology. Technology can be defined as an application of knowledge that
leads to production and marketing of goods and services. According to Betz
Technology develops business by providing technical knowledge for the
goods and services that firm produces. Technological Innovation implies new
technology, creating new products and services—hence new business
opportunities. In this lies the basic importance of innovation which is
fundamental to economic development i.e. the creation of business
opportunities. Managing technology means using new technology to create
competitive advantages. Technology is often thought to be a sole domain of
the scientific and engineering section of an organisation. Yet successful use
of technology requires strategic decisions about technology in other
functional areas, such as production, marketing sales, finance, HR etc.
Therefore, it is important to bridge technological and functional areas.
Technology and innovation when combined together lead to technological
innovation. The basic aim of technology management is to implement the
technology and float it in the market, e.g. agricultural produce like harvesting
use technology. The myth that IT is related only to computers and electronics
is not [Link] is far more than that. Introduction of life saving drugs using
technology is another example of technological innovation. Technological
innovation is a part of the total innovation discipline. Technological
innovation therefore, has the following features:

x Generate or create a new idea which is based on technology, capability

or knowledge (invention);
x Develop the idea into a reality leading to building of a product
(realisation);
x Implement the new idea (implementation)
To summarise, the working definition of technological innovation is to create
or produce a new solution for a real or perceived need (invention) which is
viable and can be produced (realisation and then successfully introduce the
product in the market i.e. implementation).

2.3.1 Process of Innovation

After discussing different aspects of innovation, let us now have a brief
discussion related to the process of innovation. The process of innovation has
five basic steps. These steps are follows:

1) Idea Generation and Mobilisation

2) Advocacy and Screening
3) Experimentation
4) Commercialisation
5) Diffusion and Implementation

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Foundation of 1) Idea Generation and Mobilisation : The very first step of the process
Indian Business of innovation stresses on generating an idea and then floating it. A new
idea can be new or can be created to improve an existing idea. A very
popular example is that of Apple. Apple inc. waited for three years to
introduce iPod after MP3 players were introduced. The idea was
generated when MP3 players came into existence but the organisation
waited before launching the product. During this step the customers,
employees, public at large and partner/supplier innovation should be
considered.

2) Advocacy and Screening: The second step involves screening of

ideas. The idea with maximum opportunity and having a futuristic
outlook is chosen. The screening is preceded by advocacy. The idea
generators do not have skills to advocate their ideas so it is important
for the managers working in the field to facilitate the idea which can
then be considered for screening.

3) Experimentation: This is the testing stage where the selected ideas are
tested in the targeted market. The testing can be continuous or in phases
wherein the advocates and screeners can reevaluate the idea. Time is
the most important factor in this case. A very good example is Amazon.
Amazon in 2007 came up with the idea of launching grocery delivery
service and it tested the experiment in the suburbs of Seattle. Once it
was ensured that the experiment is successful then it launched it in
other parts of the country.

4) Commercialisation: The main aim of this step is to create a market

value for the idea and focus on its potential impact. The innovated
product can be launched in the target market only when it meets the
demands of the customers.

5) Diffuison and implementation: This step involves two stages i.e.
diffusion and implementation. Diffusion is the stage where an
organisation accepts the innovation and implementation is the stage
when the idea is developed or produced.

If the above steps are applied along with proper resources, the innovation
may be successful.

2.3.2 Types of Innovation

Innovation can be broken down into two dimensions: Technology and Market
and based on these dimensions there are following four types of innovation
(Lopez, 2015):

1) Incremental Innovation

2) Disruptive innovation
3) Architectural Innovation
4) Radical Innovation

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1) Incremental Innovation: This is the most popular type of innovation Technological
Innovation and
which utilises the existing technology thereby increasing the value to Skill Development
the customer. Usually all types of organisations at one point of time
engage in incremental innovation. For example Facebook. This social
network company since its inception in 2004 has used incremental
innovation in different forms.

2) Disruptive Innovation: This type of innovation is also known as

stealth(secret) innovation. This uses new technology processes to the
organisations current market. It is secretive in nature as this technology
tend to be inferior than the existing technology in the market and is
more expensive. The new technology initially is quite hard to use till it
surpasses the old technology and disrupts all existing organisations. In
this case the organisation going in for new technology gains a
competitive advantage. Apple’s iPhone is an example of disruptive
innovation wherein it disrupted the mobile phone market.

3) Architectural Innovation: This type of innovation takes the lessons,

skills and overall technology and applying the same in the different
market. Organisations in computer business like IBM, Dell etc. have
been using sustaining technologies with little modification to suit the
design. This type of innovation is less risky.

4) Radical Innovation: This kind of innovation usually gives birth to new
ideas consuming the old ones thereby creating a revolutionary
technology. A good example of the same is crowd funding as a mode of
financing being used by entrepreneurs.

The organisations use various types of innovation which best suits their
needs.

Check Your Progress A

1) What is Innovation?
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2) What are the features of Technological Innovation?
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3) Name the different types of Innovation?
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Foundation of
Indian Business
2.4 MAKE IN INDIA V/S MADE IN INDIA
Make in India
‘Make in India’ is the initiative of Government of India and was launched in
2014. The concept of this initiative dates back to 1901 in the pre-independent
India. Dadabhai Nauroji is considered to be the brain behind this concept
when he disagreed with the export of raw materials as part of British
Economic Policy. The basic concept of ‘Make in India’ encourages the
industrialists to setup their manufacturing units in India through Foreign
Direct Investment (FDI) so as to put India on the global map with respect to
manufacturing. The objective of this programme are as follows:
x To solve the problem of employment;
x To improve the GDP growth rate.
These objectives tend to be highly ambitious but if implemented well will
give a boost to Indian economy and help build a solid infrastructure of the
nation. This policy has some drawbacks also. The plan to invite FDIs for
utilising India’s potential places India in a vulnerable position. The risk is
high as the expenditures in terms of licensing costs etc. are high. This may
also result in the capital outflow. This will lead to unemployment and thereby
adversely affecting the GDP which is against the objectives of ‘Make in
India’ programme. The highlights of ‘ Make in India’ programme are:
x FDI to invest in the manufacturing sector;
x FDI to invest in the defense sector;
x Licensed manufacturing of foreign defense equipment under defense
procurement (DPP).
x Despite drawbacks this scheme can be advantageous. To overcome the
drawbacks of this scheme ‘Made in India’ can be an alternative.
Made in India
It is a tag line given to the products manufacturing in India. You must have
often witnessed that the products like apparels and accessories, consumer
durables etc. having a caption mentioned in the specifications of the products
like Made in India, Made in USA, Made in China etc. How, is it that a
product gets the tag of Made in India? The product can only be tagged as
made in India when the product has been manufacture with Indigenous
factors of productions which are land, labour, capital, entrepreneurship and
technology. ‘Made in India’ can overcome the challenges posed by ‘Make in
India’. How can it be done? It can be done by promoting the products made
in India. This will help in utilising national talent and resources thereby
generating opportunities for employment. This can also be used as a platform
for promoting start-up. The main advantage of promoting Made in India
would be to promote the brand image of the country and place the country on
the global pedestal. Indigenously made products like jute products promote
the economy of the nation. ‘Made in India’ can averse the risks posed by
‘Make in India’. Table 2.2 gives basic differences between ‘Made in India’
and ‘Make in India’.

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Technological
Table 2.2: Differences between ‘Make in India’ and ‘Made in India’
Innovation and
Skill Development
Sl. No. Particulars Make in India Made in India
1. Factors of Foreign Domestic
production
2. Brand image Does not create a Is a brand e.g.
brand instead it is an Amul.
instrument

2.5 DIGITAL INDIA
As per [Link] digital India is a government initiative which
was launched in 2015. The aim of this initiative is to transform India into a
digital nation. The objective of this is to reduce the paperwork involved in
getting many of the formalities completed for example passport services,
voters ID, driving license etc. The aim is to increase the speed of getting the
work completed and also to connect the rural sector to the urban sector.
Digitising various services will help the masses. Digital India programme has
some features and they are as follows:

x Robust digital infrastructure throughout the country resulting in

authentic digitised identity to the citizens of the nations.
x Good governance for online services in form of electronic and cashless
transactions.
x Digital empowerment through digital literacy.
Based on these features, the objectives of digital India are as follows:

x To provide fast speed internet services.

x To provide e-governance by reforming and digitising government

services.

x To bring e-revolution in terms of electronic delivery of goods and

services.

x To provide basic information through online platform.

x To provide more opportunities of employment in the IT sector.

As per UNINDIA February, 2019 programme which is an extension of
‘Digital India’ development agenda, the Government of India is planning to
invest in modernising classrooms across India. The initiative is to include
digital boards as part of broader digital initiative in all the state run schools
and colleges across India. This is the recent development and addition to
‘Digital India’ concept. Likewise many such programmes have been
launched which work for the benefit of the masses. Some of the programmes
are as follows:

x Internet Saathi: Improving digital literacy among women.

x Government services on your fingertip.
37

 
Foundation of x DIGIDHA – Go cashless to digital Gem-government e market place
Indian Business
x Online Market – for smart government buyers
x Rapid Assessment System (RAS)
x Dig cocker
There are many more such programmes which have been launched and are in
pipeline to make India digitally empowered and a knowledge economy.

2.6 SKILL DEVELOPMENT : APPROACHES

AND STRATEGIES
Ministry of Skill Development and Entrepreneurship (MSDE), Government
of India looks after the skill India Kaushal Bharat programme. Skill India is
an initiative which has been launched with the aims of empowering the youth
of the country ([Link]) so as to increase their employability and
create a more productive work environment. The aim of such initiative is to
cater to the needs of 65% young population of the country. Skill India is a
programme which offers around 40 courses in various sectors across the
country.

2.6.1 Skill Development Initiatives

New age skills in the area of big analytics, Artificial intelligence, Internet of
things, 3D printing etc. are being harnessed amongst the youth through
various courses offered by different ITIs across the nation. A national policy
on Skill Development and Entrepreneurship 2015 and National Skill
Development Policy 2009 has charted out the do’s and don’ts of the skill
India mission. The National Skill Development Mission’s emphasis is on
developing the skills of the 500 million youth of the country by 2020.
Though this is an ambitious programme, still it holds prospects for the youth
of the country. The main initiatives of the MSDE are as follows:

- Setting up of first –ever Indian Institute of Skills in 2016 at Kanpur.

The proposal for setting up 6 such institutes across the country has been
planned.
- Pradhan Manri Kaushal Vikas Yojna (PMKVY): This is the
flagship scheme of skill training of MSDE and is the largest skill
certification scheme in India.
- MSDE also recognizes and certifies the skills acquired through informal
training centres through its Recognition of Prior Learning (RPL)
programmes under PMKVY.
- National Apprenticeship Promotion Scheme (NAPS): This scheme
was launched in 2016 with the aim to promote apprenticeship training.
- Dual System of Training: This scheme provides an opportunity for
training in dual mode i.e. through face-to-face teaching (ITI) and in
industries. This will increase the employability of the trainees.
- Space –based Distance Learning Programme (SDLP) for MSDE:
This programme aims at providing the vocational training facilities to the
masses.
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There are many more informal skill based training programmes running to Technological
Innovation and
provide a knowledge base to the people and equip them for skill – based jobs. Skill Development

We have seen that Government of India is offering many schemes for skill
development. It is important to note here that MSDE is also collaborating
with various countries in the areas of skill development and entrepreneurship.
Some of the collaborations are as follows:

x MOUs with UAE and Qatar on mutual qualifications.

x MOU with France for skill training in the power sector
x MOU with Switzerland on sharing best practices
x MOU with Singapore and NSDC as the partner for setting up centres of
excellence.
x All these initiatives have taken the country a step forward in granting the
skills of the youth of the country.

2.6.2 National Skill Development Corporation (NSDC)

The National Skill Development Corporation (NSDC) was set up as a part of
National Skill Development Mission of MSDE as a public private partnership
company. The aim of NSDC is to facilitate the skills landscape in India. The
concept of NSDC is based on three pillars. These are:

1) Create: To facilitate in establishing quality vocational training

institutions.
2) Fund: To provide funds in form of grants and equality.
3) Enable: To ensure the sustainability of support systems required for
skill development which includes industry operated sector skill councils
(SSCS).
The vision and mission of NSDC is as follows:

Vision of NSDC: To fulfill the growing need in India for skilled manpower
across the existing gap between the demand and supply of skills.

Mission: The mission of NSDC is as follows ([Link]

mission):

x Upgrade skills to international standards through significant industry

involvement and develop necessary frameworks for standards, curricular
and quality assurance.
x Enhance, support and coordinate private sector initiatives for skill
development through appropriate Public-Private Partnership (PPP)
models; strive for significant operational and financial involvement from
the private sector.
x Play the role of a “Market-maker” by bringing financing particularly in
sectors where market mechanism are ineffective or missing.
x Prioritise initiative that can have a multiplier or catalytic effect as
opposed to one-off impact.
39

 
Foundation of Keeping in view the vision and mission of its main objective is NSDC
Indian Business
x To contribute significantly to the overall target of skilling up of people in
India, mainly by fostering private sector initiatives in programmes and to
provide funding.

The objective of NSDC includes all three pillars on the basis of which it was
formed.

MSDE through NSDC has taken up number of initiatives to collaborate with

industry under the larger mandate of Skill Indian Mission. NSDC has a
simple –window facilitation system which offers a platform for industries to
partner on different initiatives like Corporate Social Responsibility (CSR). It
works in partnership with varied set of stakeholders like corporates, NGOs,
government organisations etc. to structure skill development projects which
have high impact. NSDC since its inception has collaborated with NALCO,
SBI card, GE Power, NTPC etc. to fulfill CSR commitments under the
companies (CSR) Rules, 2013. NSDC is also providing certification through
National Skills Qualification Framework (NSQF) for skill development
programmes. All this is done to align all the skill development programmes
across the nation. After going through the vision, mission and objective of
NSDC, it can be said that NSDC has been facilitating the mandate of skill
development mission under PPP model.

2.7 START-UP INDIA AND INCUBATOR

Start-up India
Start up India is a flagship programme of the government of India with a
major aim of building a strong ecosystem which is favorable for the growth
of startup businesses. Which in turn will give a sustainable economic growth
leading to large scale opportunities for employment. The start-up India
programme has 19 – point action plan which will have many incubation
centres, easy talent, tax benefits and ease of setting up of business and faster
exit mechanism. This was launched in 2016. The main aim of this initiative is
to nauture innovation and design.

Action plan of start-up India

The action plan has three pillars which are as follow:
x Simplification and Land holding
x Funding support and incentives
x Industry – academia partnership and incubation.
Simplification and Landholding: This pillar focuses on issues related to
regulation, single point contacts, illegal support system, relaxed norms and
faster exit mechanism for start-up. The basic aim is to ease the formalities for
setting up of start-ups.

Funding Support and Incentives: focuses on providing funds, credit

guarantee, tax benefits on capital gains, investments etc., for start-ups. This
aims at providing funds and tax exemptions at various stages.

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Industry-academia partnership and incubations: focuses on collaboration Technological
Innovation and
of educational institutions with industry for showcasing innovation, harassing Skill Development
sector expertise for incubators, building innovation centres, promoting start-
up in different sectors like biotechnology, launching of innovation focused
programmes for students etc. One more important feature of this pillar is the
launch of Atal Innovation Mission (AIM) with Self-Employment and Talent
Utilisation (SETU) programme.

The detailed Action Plan 2016 report is available on

[Link]. We can say that start-up India programme caters to
the need of the young minds in contemporary times.

Incubator
Incubator basically is an organisation which shows the part to the start-up
companies to speed up their growth and success ([Link]
The start-up India programme gives incubation support to set up incubation
centres across the states. Atal Innovation Mission aims at setting up Atal
Incubation Centres (AICS) in public and private sector. It also aims at
facilitating the established Incubation Centres (EICS). April, 2019. 13 AICS
have been approved with a flaunt of rupees 10 crore is also being given to
EICS. The state governments are also promoting this concept for e.g.
Government of UP has supported for setting up 8 incubators which includes
IIT BHU, IIM- Lucknow (Noida Campus IIT – Kanpur, KNIIT Sultanpur and
I Bhubs- UPDESCO, Lucknow government of Himachal has approved 7
academic institutes to set up incubators across various sectors which includes
engineering, food, processing, biotechnology, agriculture etc. every state
government provides different flaunt. Various other incubators under PPP
Model have also been set-up. Some examples are Indian Angel Network
(IAN) incubator in collaboration of National Science and Technology
entrepreneurship Development Board, Department of Science and
Technology Government of Science And Technology, Government of India.
There are many such examples. Incubators therefore, are organisation which
promote start-ups.

Check Your Progress B

1) State objectives of make in India?
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2) Which are the programs the covered under Digital India initiative?
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Foundation of 3) Name three pillars of National Skill Development Corporation?
Indian Business
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4) What are Incubators?
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2.8 LET US SUM UP

Innovation is the process of translating an idea or invention into a good or
service that creates value for which customers will pay. It refers to the
introduction of a new product. It basically improves an existing concept or
idea using a stepwise process to create a product which is commercially
viable.

Creativity is novel ideas which are appealing and useful whereas invention is
an idea for novel product or a process and invention is making the invention
into a product from that is based n a broad set of strategic, marketing and
technical skills.

Innovation helps in solving and adapting the rapid changes of the

technological area. Innovations are different types such as Incremental
innovation, Disruptive innovation, Architectural innovation and Radical
innovation.

Make in India is the initiative of Government of India that encourage the

industries to setup their manufacturing units in India through FDI with the
objective to solve the problem of employment and improve the GDP growth
rate.

Made in India is a tag line given to the products manufactured in India. The
products can only be tagged as made in India when the product has been
manufactured in indigenous having India’s factors of productions which are
land, labor, capital, entrepreneurship and technology.

Digital India is a government initiative launched in 2015 with the aim to

transform India into a digital nation, to increase the speed of work getting
completed and also to connect rural sectors to urban sectors.

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Ministry of Skill development and Entrepreneurship (MSDE) Government of Technological
Innovation and
India looks after the various skill development programmes for the country. Skill Development
The main initiatives of MSDE are: 1) Setting up of first ever Indian institute
of skills 2) Pradhan Mantri Kaushal Vikas Yojna 3) National Apprenticeship
Promotion Scheme 4) Dual system of training 5) Space based distance
learning programme etc.

Startup India is a flagship programme launched in 2016, with the aim of

building a strong ecosystem that is favorable for the growth of startup
business. The action plan of startup India has three pillars those are: 1)
Simplification and land holdings 2) Funding support and incentives. 3)
Industry academic partnership and incubations.

Incubators are the organisation which shows the part to the startup strategy
companies to speed theory growth and success.

2.9 KEY WORDS

Creativity: Creativity is a phenomenon whereby something new and
somehow valuable is formed. The created item may be intangible such as an
idea, a scientific theory, a musical composition, or a joke or a physical object
such as an invention, a literary work, or a painting.

Invention: An invention is a unique or novel device, method, composition or

process.

Innovation: Innovation is the process of translating an idea or invention into

a good or service that creates value for which customers will pay.

Technological Innovation: Technological innovation is an extended concept

of innovation. It is the process where an organisation (or a group of people
working outside a structured organisation) embarks in a journey where the
importance of technology as a source of innovation has been identified as a
critical success factor for increased market competitiveness.

Make in India: Make in India, a type of Swadeshi movement covering 25

sectors of the economy, was launched by the Government of India on 25th
September 2014 to encourage companies to manufacture their products in
India and enthuse with dedicated investments into manufacturing

Made in India: Made in India is a tag line given to the products

manufactured in India. The products can only be tagged as made in India
when the product has been manufactured in India.

Digital India: Digital India is a government initiative launched in 2015 with

the aim to transform India into a digital nation, to increase the speed of work
getting completed and also to connect rural sectors to urban sectors.

Start-up India: Start-up India is a flagship programme launched in 2016,

with the aim of building a strong ecosystem that is favorable for the growth
of startup business.

Incubator: Incubators are the organisation which shows the part to the
startup strategy companies to speed theory growth and success.
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Foundation of
Indian Business
2.10 TERMINAL QUESTIONS
1) Explain the process of innovation.
2) State the differences among Creativity, Invention and Innovation.
3) What is Technological Innovation?
4) How ‘Make in India’ differs from ‘Made in India’?
5) What is digital India Programme? What are its features and objectives?
6) Explain the various approaches and strategies of skill development.
7) Discuss the action plan of start up India.

Note: These questions will help you to understand the unit better. Try to
write answers for them. But do not send your answers to the
university. These are for your practice.

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