[This week's post is a continuation from last week's post - insights from the Inclusive Innovation conference held at Rashtrapati Bhavan.]
Funding Innovation
Funding of innovation is always a challenge, and one that
different countries solve in different ways.
Gilles G. Patry, President & CEO spoke about how the
Canada Foundation for Innovation has invested over a billion dollars in state-of-the-art
facilities at universities across Canada to help them do world-class research. The
Foundation funds upto 40% of the project cost and focuses on partnerships. He
suggested that the model is largely successful. The evidence? - Canada punches above its weight on research
and accounts for 5% of impactful research papers [sorry, I can’t recall exactly
how this was measured or over which period.]
For me, one of the big attractions of the Round Table was
the participation of Nobel Laureate and Grameen Bank founder Mohammed Yunus.
For someone who has brought revolutionary ideas like microfinance to the world,
he was surprisingly skeptical about the availability of finance. According to Yunus, the sector needing the
largest innovations is the finance sector! Professor Yunus drew our attention
to what he considered the biggest achievement of Grameen Bank - in savings and
not in lending! He estimated that the Grameen Bank had contributed to more than
$2B savings so far.
A German participant pointed out that money is available for
impact investment but not enough social enterprises are available to absorb
this investment. But, other participants were skeptical of Impact investing,
citing a conflict between the social mission of the enterprise and the
investor’s desired outcomes
Anil Gupta said the ecosystem should support both managed
innovation and spontaneous innovation. He stressed the need for both a sanctuary
model that has chaos inside and order
outside and an incubator model that has
chaos outside and order inside.
Making Social Innovation Work
Several useful ideas emerged on this theme:
One participant made an interesting observation – most people
today recognize 1000 corporate logos but fewer than 10 plant species. Parag
Anand of the School of Planning & Architecture (SPA) at Delhi came up with
at least one solution to this problem – the SPA organizes tours for student
immersion as user experience is critical to social innovation.
Iyer from the Mumbai-based Indian Foundation for Development
(IFD) spoke about the need for tinkering rooms/workshops in schools as also
innovation exchange programmes. The IFD has started 185 balagurukuls that host
12500 children, and there is a need to expose them to creativity and innovation.
Anil Gupta advocated the Indian concept of samavedana –
making others’ pain your own, or empathetic innovation.
Mohammed Yunus suggested targeting waste. He said that at
least one out of every 6 pairs of shoes bought by customers is not worn. Can’t
these be re-channelised to the poor? Can’t cloth rejected by textile mills also
be used?
Some participants wondered how existing innovations could be
spread or diffused better. Reaching the market is often difficult. Anil Gupta
gave an interesting example of four machine tool start-ups in
Ghazaiabad/Faridabad that started a common marketing company so that together they
would have a broad enough catalogue and a large enough volume of products to
justify marketing expenditures.
Grameen Bank uses the joint venture route to solve new
problems and reach users. For example, it has a joint venture with BASF for
treated mosquito nets, and uses the Grameen Bank channel including self-help
groups to reach users. The scientist from LBNL advocated coming up with innovations
that the corporate sector will embrace.
Corporate Sector vs. Social Sector
In fact, the liveliest debates were about the role of the
corporate sector and the social sector. Lines
were clearly drawn with some people like this scientist clearly preferring
market-based solutions and others clearly distrusting the private sector to do
anything beyond enriching itself. The word “trust” figured in many of these
discussions.
Solomon Darwin of the University of California at Berkeley
pointed out that while open innovation is a 2-way street involving ideas
flowing both outside in and inside out, corporations have tended to focus only
on the former. He pronounced that the world of high margins is over though I
wonder how this can be completely true when Apple is sitting on hundreds of
billions of dollars amassed through huge margins.
One of the most engaged participants in the Round Table was Jin
Hyo Joseph Yun of South Korea. One could almost see his mind working as he
tried to relate what he had seen in the exhibition to the discussion in the
conference room! He tried to build a model on the fly – volunteers are needed to
connect technology to society/market but virtuous big business is needed to make
it commercially successful.
Stuart Hart cited Polanyi to make a point that was in one of
his articles - production has got disembedded from the social world. People
have come to distrust the business process. There is a need to re-embed
economic activity in society, that is to build business models that create
mutual value.
Mukesh Puri, Secretary Higher & Technical Education, Government
of Gujarat believed that successful innovations have to be owned by the people
. The perceived benefits need to be clear. He cited Pravesh Utsav, a
celebration held at the time of girls joining school in Class 1 All political
figures participate. He said that the drop-out rate has declined as a result.
Conclusion
It is ironic that innovation which is inherently an
integrative activity is today impeded by silos. These silos are reinforced by
different philosophies and worldviews. We may have to rely on other forces at
work to lower these walls. Take the new requirement of compulsory CSR activity
by Indian companies – this is forcing companies to work more closely with NGOs
and other social organizations. Hopefully, this will create an environment in
which companies and NGOs recognize each others’ worth, and lead to
collaborative and inclusive innovation in the future.
[This blog has been written based on notes taken by the
author. These have not been re-checked with the speakers. Views expressed are
those of the individuals and do not necessarily represent the institutions they
work for.]
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