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Complexity driving Indian innovation: Zinnov

Zinnov Management Consulting has released a new study on Indian innovation that finds start-ups and multinational companies, together, are the principal drivers – and true innovation may lie in co-creation between these two entities. The study reveals that increased budget allocation for technology-enabling initiatives from the Indian government -- to the tune of $9 billion across 27 multi-million projects is proving to be a big stimulus.Total IT spend is expected to grow to $ 50 billion over the next five years
75% of start-up companies in India operate in the digital and business productivity space -- a clear indication that the need to use and build online applications to solve business challenges has encouraged many start-ups to focus on innovating in these areas. The biggest driver for innovation is the challenging complexity of the Indian market, with multiple languages, regulatory influence, and connectivity without continuity, Zinnov suggests Just like their enterprise-size counterparts, start-ups who are not currently focusing on R&D are increasingly beginning to invest heavily in domain-specific research which will see them through the new wave of innovate-and-operate technology.
"On one hand, it is encouraging to see more and more start-ups fostering in India -- at a rate much higher than the last couple of years -- but it requires government policies to change a little bit. Most tenders are not currently open to smaller companies unless they have prior experience in handling government projects. Unless rules like these are reversed, any amount of innovation will distance itself from government projects and with the large scale investment planned in this country in the areas of financial inclusion and rural computing, it is essential to rightfully use start-up brains", Pari Natarajan, Co-Founder and CEO, ZInnov, says.
Link for copy of report, "India's Innovation Thrust - Driven by Start-ups and MNCs" : http://www.zinnov.com/white_papers.php

July 7 2011




    


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