Accelerated Inclusive Growth through Inclusive Innovation ... › sti › inno ›...
Transcript of Accelerated Inclusive Growth through Inclusive Innovation ... › sti › inno ›...
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Accelerated Inclusive Growth
through
Inclusive Innovation
R.A.Mashelkar
20 March 2014
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Inclusive Innovation Drivers
Emerging Economies
• Rising Incomes & Aspirations
• Rising Inequalities
• Rising Social Disharmony
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Income Disparity in China
Gini index of income inequality in
China
Rural-urban disparities in annual per
capita disposable income
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World Bank- Inclusive Innovation Summit China
C
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Cape Town, 21 Nov 2012
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“Inclusive Innovation is any innovation that leads
to affordable access of quality goods and
services creating livelihood opportunities for the
excluded population , primarily at the base of
the pyramid and on a long term sustainable
basis with a significant outreach”
R.A.Mashelkar
21 Nov 2012
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Key Words
• Affordability
• Accessibility
• Scalability
• Sustainability
• Quality
• Grassroots Innovation
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5 Mantras for Successful Scaling
1. Go for ‘affordable excellence’
2. Build ‘entire ecosystem’ to support scale, not just a ‘stand alone’ venture
3. Focus on ‘end to end’ innovation
4. Remove ‘internal barriers’ to inclusive business
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5 Mantras (contd)
5. Remove ‘external barriers’ to inclusive business
• Financial
• Infrastructural
• Regulatory
• Marketing, distribution & sales
• Collective action with Govt, local NGOs….
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5 Mantras for Successful Scaling
1. Go for ‘affordable excellence’
2. Build ‘entire ecosystem’ to support scale, not just a ‘stand alone’ venture
3. Focus on ‘end to end’ innovation
4. Remove ‘internal barriers’ to inclusive business
![Page 11: Accelerated Inclusive Growth through Inclusive Innovation ... › sti › inno › Session_3_Mashelkar_Keynote.pdfAffordable 25 fold Reduction in Price! High cost (~ $ 25 per test)](https://reader033.fdocuments.net/reader033/viewer/2022052723/5f0d8a527e708231d43adde4/html5/thumbnails/11.jpg)
Affordable Excellence
No Dream – A Reality!
Case - Hemoglobin Detection
Affordable
25 fold Reduction in Price!
High cost (~ $ 25 per test) to ultra low cost ($ 0.5 per test )
Excellence
Breakthrough High-tech Innovation:
From ‘invasive’ with needles to ‘non-invasive’ with no needles
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Anjani Mashelkar Inclusive Innovation Award- 2012
12
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‘Affordable Excellence’ through Cutting Edge Technology
High Technology :
Photoplethysmography + Spectrophotometry +
Sophisticated photon scattering software
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A Paradigm Shift
Excellence – More from Less
Affordable – For More (People)
More from Less for More (MLM)
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Innovation’s Holy Grail - MLM
C.K. Prahalad
R.A. Mashelkar
Harvard Business Review- July, August 2010
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Special Session
More From Less For More
16 Nov 2010
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5 Mantras for Successful Scaling
1. Go for ‘affordable excellence’
2. Build ‘entire ecosystem’ to support scale, not just a ‘stand alone’ venture
3. Focus on ‘end to end’ innovation
4. Remove ‘internal barriers’ to inclusive business
![Page 18: Accelerated Inclusive Growth through Inclusive Innovation ... › sti › inno › Session_3_Mashelkar_Keynote.pdfAffordable 25 fold Reduction in Price! High cost (~ $ 25 per test)](https://reader033.fdocuments.net/reader033/viewer/2022052723/5f0d8a527e708231d43adde4/html5/thumbnails/18.jpg)
Aravind Eye Care Scaling Success through a Whole
Ecosystem
• 2.5 million eye tests and 300,000 cataract surgeries per year
• Low cost ($5) lens manufacturing joint venture
• Extreme efficiency in opex through workflow innovation
• Research and training institutes
• Civil society groups that organize patient screening events in rural villages
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5 Mantras for Successful Scaling
1. Go for ‘affordable excellence’
2. Build ‘entire ecosystem’ to support scale, not just a ‘stand alone’ venture
3. Focus on ‘end to end’ innovation
4. Remove ‘internal barriers’ to inclusive business
![Page 20: Accelerated Inclusive Growth through Inclusive Innovation ... › sti › inno › Session_3_Mashelkar_Keynote.pdfAffordable 25 fold Reduction in Price! High cost (~ $ 25 per test)](https://reader033.fdocuments.net/reader033/viewer/2022052723/5f0d8a527e708231d43adde4/html5/thumbnails/20.jpg)
Mobile Phone Revolution Inclusive Innovation that Scaled
Ensured ‘Access Equality’ despite ‘Income Inequality’
Combination of public policy, technological and business model innovation
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Income Inequality 1000 : 1 ?
Access Equality 1:1!
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Indian public policy innovation
• Leap frog from going for more land lines
by
laying more copper lines
to
voice over mobile and internet
• And also bold deregulation…….
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This policy innovation riggered other innovations! This policy innovation triggered other innovations!
Handset $250 $25
Call Rates 10 cents 0.1 cent
X
X
Technological
Innovation
(Nokia, Ericsson…)
Business Process
Innovation
(Reliance, Airtel….)
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Inclusive Innovation
Technological Innovation
Business Model
Innovation
Workflow Innovation
Organizational Innovation
Research Process
Innovation
System Delivery
Innovation
Policy Innovation
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• Wrongly positioned as poor man’s car rather
than a technology marvel
• Affordable excellence but ‘excellence’ should
have been at the front end, not ‘affordability’!
• Nano customer could not go to showroom, the
Show room needed to come to him!
• Innovative marketing and financing strategy for
a first time low income user missed
Why did Nanovation not Scale?
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5 Mantras for Successful Scaling
1. Go for ‘affordable excellence’
2. Build ‘entire ecosystem’ to support scale, not just a ‘stand alone’ venture
3. Focus on ‘end to end’ innovation
4. Remove ‘internal barriers’ to inclusive business
![Page 28: Accelerated Inclusive Growth through Inclusive Innovation ... › sti › inno › Session_3_Mashelkar_Keynote.pdfAffordable 25 fold Reduction in Price! High cost (~ $ 25 per test)](https://reader033.fdocuments.net/reader033/viewer/2022052723/5f0d8a527e708231d43adde4/html5/thumbnails/28.jpg)
Removing Internal Barriers
Technologically sophisticated performance rich products with many features
Remove features to reduce costs
Premium Price-High Margins
Technology Push, Product –Out Approach
Current Markets- Old Money
Use developed world products to transform emerging markets
Frugal, functional but high quality products
Reinvent the product from ground up
Affordable Price- High Volumes
Customer Centric, Market Based Approach
New Markets- New Money
Build new global growth platforms based on emerging markets
OLD MINDSET NEW MINDSET
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5 Mantras (contd)
5. Remove ‘external barriers’ to inclusive business
• Financial
• Infrastructural
• Regulatory
• Marketing, distribution & sales
• Collective action with Govt, local NGOs….
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• DFID’s Business Innovation Facility
• USAID’s Development Innovation Venture
• Social Impact Funds ( Acumen Fund, Grey Ghost
Ventures)
• Guarantee Facilities (Root Capital)
• Indian Inclusive Innovation Fund ($ 1 b final)
• 2% of PAT reserved in India for Social Corporate
Responsibility (with corporates)
Explore Non-traditional Financing including
Government
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The Big Question
Why should OECD be interested in
Inclusive Innovation?
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“If we do not come up with innovations in
poor countries and take them global, new
competitors from the developing world –
The Mindray, Suzlon & Goldwind- will.
That is a bracing prospect.”
- Jeffrey Immelt
CEO, GE
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REVERSE INNOVATION
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Reverse Innovation
ElectroCardioGraph
Machine $10000 $600 X
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Reverse Innovation
Ultrasound Machine $30000 $1500 X
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GE plans to spend $3 billion till 2015 to
create at least 100 health-care innovations
that would substantially lower costs,
increase access, and improve quality..”
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Global Research For Global Good
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Nine countries, five continents
GRA member organisations
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GRA Inclusive Innovation Project Green & Low-Cost Wireless Communication Network for Africa
Fraunhofer (Germany) - terrestrial wireless infrastructure to bring this satellite connectivity into the wide area
Fraunhofer (Portugal) - applications for targeted deployment
CSIR SA- wireless mesh concepts, in particular community mesh and wireless backhaul
CSIRO - efficient satellite-based infrastructure to reach rural areas
VTT – integration of network management
Macha Works - supporting local deployment, training staff, testing and evaluation
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Vietnam Inclusive Innovation Project
(GRA as a Knowledge Partner)
World Bank funded ( USD 55 million)
• Developing inclusive technologies
• Scaling up, and commercialization
• Capacity building
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Thank You