1. Innovations in Developing Markets Key Note Presentation By NK Goyal, President CMAI Chairman Emeritus, TEMA Vice Chairman ITU APT Chairman, ITPS Dubai Member, Governing Board Telecom Equipment and Services Export Promotion Council (Govt. of India) 18th World Electronics Forum, 2013 Vietnam, May 14 th 2013 www.cmai.asia, www.cmaievents.comwww.cmai.asiawww.cmaievents.com

2. Innovation is a word with many definitions, many applications, many promises and challenges. It is generally accepted that innovation is a force for good, an essential driver of social, economic, cultural and ultimately human development. Innovations in ICT have changed the way we live from the widespread adoption of mobile banking to social networking, distance learning, online shopping and video conferencing. Millions of applications across multiple platforms offer new services and products around the globe at a dizzying pace and with a deep-rooted, at times unpredictable, impact upon society and business. Innovations can produce an annual GDP output of more than $50b. Big enough to eradicate the poverty and hunger problems of several Countries of world. (World Bank) www.cmai.asia What is innovation?

3. Changing Dynamics of Innovations The needs and technologies of present times have changed and are new to our generation. Meanings, dynamics, expectations are changing. Everybody wants everything. Hunger for more and more speed, data, volume Hence need for new approach for innovations. Earlier innovations was primarily coming from developed Countries, Microsoft, Apple’s iPHONE, I Pad, Touch screen Cell Goggle, Web, Internet and several others Now in global seamless world, the need for innovations is more felt in developing Countries and they have joined the race. Innovation not a one time invention..….Rather continuous and constantly evolving….2G, 3G, 4G and so on, higher and higher speed 1 Gbps by Samsung

4. Why innovate? Innovation- an important source of competitive advantage: Nokia, Intel, Sony, Seiko, Corning & Motorola, Converges, 3M, have all generated sustained competitive advantage. These firms have generated about 50% of their revenue through new products. Slowly by passage of time, the core competency of companies without innovation become core rigidities Innovation need: Strong leadership desire to promote and encourage innovations, which may appear to be absurd or out of box Making innovations a part of Company philosphy Recognition and incentives for suitable successful innovations Managing creativity and risks www.cmai.asia

5. India China Asian Countries leading Innovation markets Developing Countries like India, China, South Africa have come up with several Innovative ideas and have immense manpower waiting to be harnessed and capitalized. Asia….the engine for growth, also known as BRIC India, China…the two largest populated Countries with similar characteristics of large demand and cost sensitive. Emerging markets BRIC India Brazil China Russia are the new mass markets of the world. They now generate half of global GDP and more than 40% of world exports. Yet, the customers in these new mass markets are fundamentally different from those in developed markets. Contrast the average per capita income in the U.S. $44,000 vs India $1,000 www.cmai.asia

6. India Government promotes Innovations 2010-2020 declared as Decade of Innovation-focus on inclusive growth to cover Governance, Service Delivery, Environment, Land, Education, S&T, Health, Finance etc. A National Innovation Council with State Innovation Councils and Sector Innovation Councils. State Councils to create a cross-cutting system to boost innovation performance in the entire country, to promote Innovations by State Govt., encourage young talent, local Universities, MSME, R&D Institutes, identify and reward talent, Organize risk capital Sector Specific Councils focused for each Industry sector to drive innovative strategies in key sectors and create multiple roadmaps

7. National Innovation Council National Council headed by Advisor to Prime Minister To discuss, analyse and help implement strategies for inclusive innovation in India and prepare a Roadmap for Innovation 2010-2020. To create a framework for Evolving an Indian model of innovation, with focus on inclusive growth Delineating policy initiatives within the Government, required to spur innovation Developing and championing innovation attitudes and approaches Creating appropriate eco-systems and environment to foster inclusive innovation Exploring new strategies and alternatives for innovations and collaborations Identifying ways and means to scale and sustain innovations Encouraging Central and State Governments to innovate Encouraging universities and R&D institutions to innovate Facilitating innovations by SMEs Encouraging all important sectors of the economy to innovate Encouraging innovation in public service delivery Encouraging multi-disciplinary and globally competitive approaches for innovations

8. Innovations in Education National Innovation Scholarships to identify talented children at the school level who think creatively, laterally and innovatively on issues that they perceive as important in their local environment. To have a multiplier effect of valuing creativity and innovation by parents and teachers and the learning system. Innovation Centre in each District Institute of Education and Training to enhance teacher training and enable them to become facilitators of creativity and innovative thinking. Mapping of Local History, Ecology and Cultural Heritage by each High School in the Country to create critical thinking on their local environment by students. National Innovation Promotion Service to use college students to identify local innovations. Meta University, where a network of institutions riding on the National Knowledge Network come together to offer students a collaborative and multidisciplinary learning experience.

9. Cont….Innovations in Education Design Innovation Centres co-located in institutes of national importance. University Innovation Clusters where innovation would be seeded through Cluster Innovation Centres. The CIC will provide a platform for the university and its partners to forge linkages between various stakeholders from industry and academia, initiate and assist innovation activities, encourage innovations in curricula and act as a catalyst and facilitator. It will also work closely with other industry clusters in its region. Tod Fod Job (TFJ) in Schools and Colleges to foster Innovation at an early stage and to create an innovative mindset in the youth.

10. Tod Fod Job-To Inspire Children to Discover, Experiment, Innovate Start early towards building a nation of creators not just consumers of products Tinkering, Discovery, Experimentation are strong forms of learning Establish Indian oriented model of Hands-on discovery and learning for 5 th -8 th class students To over come of problems of most Schools & Colleges that focus on Remembering & Understanding Not Applying & Creating Not hands-on discovery with what students consume everyday

11. Industry Innovation Clusters The Innovation Clusters to bring out the needs of both industry and academia and provide a means of addressing the needs through pro- active regional ecosystems of collaboration. To act as a networking hub/arm of the cluster, forge linkages between various stakeholders, initiate and assist innovation activities acting as catalysts and facilitators. To aid the cluster and its ecosystem in connecting with each other, provide guidance to various stakeholders when needed, organize initiatives to promote growth, channel various incentives that benefit the cluster and act as an incubating body managing the growth of innovation in the cluster. Actively engaging with everyone associated with the cluster and by being a universal well-wisher constantly seeking improvement to the next-level, the cluster to imbibes and sustains an innovation culture.

12. India Inclusive Innovation Fund US$ 1Bn. Fund to drive and catalyse the creation of an ecosystem of enterprise, entrepreneurship, and venture capital, targeted at innovative solutions, technologies aimed at enhancing the quality of life at the bottom of the pyramid. To invest in a new generation of entrepreneurs who will build – and are in the process of building – world class enterprises that focus on the problems of the poor, without compromising on economic success. To create a new Indian model of innovation: one that bridges growth and equitability. To support at different stages of the enterprise development cycle – from early stages, through later phases of scaling-up of potentially successful solutions and business models. Investing in a new generation of entrepreneurial talent, capable of innovating in products, processes, and business models: successfully combining profitability and business excellence, with transformational socioeconomic impact.

13. Science, Technology & Innovation Policy 2013 Creating a robust National Innovation System. Enhancing skills for applications of science among the young from all social sectors. Making careers in science, research and innovation attractive enough for talented and bright minds. Linking contributions of Science Research and innovation system with the inclusive economic growth agenda and combining priorities of excellence and relevance. Seeking S&T based high risk innovation through new mechanisms. Fostering resource optimized cost-effective innovation across size and technology domains. Triggering in the mindset & value systems to recognize respect and reward performances which create wealth from S&T derived knowledge

14. Indian Innovation Initiatives in Governance Right to Information and Right to Education Mid Day Meal NREGA Sarv Shiksha Abhiyan-Education at Grass roots National Knowledge Commission and Network Electronic Service Delivery System $ 10 Bn. first of its kind project in the world- Unique Identification Authority of India (UIDAI).

15. India…..Known for Innovations Earlier: Number System Zero in 100 BC, Ayurveda Medicine system 2,500 years before, Yoga, rotation and correct sped of earth in 499 AD, art of navigation 6000 years before, value of pie etc. In recent times Tata Nano Car 2,000 USD. Tata Europa for world market Akash Tablet 35-40 USD Cheapest 100 cc Bike: Rock-100 at USD 365 & mileage of 100 kmpl World's cheapest electric car 8500 Euro Mahendra Reva E 20 Prosthetics Jaipur foot: Affordable prosthetics @ US$28. Hepatitis Vaccine

16. Indian Jugaad Technology - the need of the hour Definition: The most innovative, economical and quality method to accomplish the desired task by unusual / unimaginable means and ways. Indian Jugaad is Most Happening Technology On the plurality of knowledge and the autonomy of different forms of Science and Technology, and the scope to do ground breaking innovations is immense Example: A washing-cum-exercise machine, hand operated water lifting device, portable smokeless stove, automatic food making machine, solar mosquito killer, shock proof converter, a floating toilet soap

17. India : Big Consumer Market India Average household incomes to triple over next two decades and it will become the world’s 5th-largest Consumer Economy by 2025 (McKinsey Global Institute) India’s Consumer spending to grow four fold over the next 8 years to $3.6 Trillion. Total disposable income ranges from $800 billion to $1.6 trillion Number of Indian wealthy grew by 35% between 2008 and 2012 to about 1,70,000 and that number to increase to 4,50,000 by 2015 Global luxury brands are increasing their presence in large and well established malls across India. Such as Louis Vuitton, Swiss watch maker Richemont, Gucci, Britain’s Burberry and Hermes, Watchmaker Tag Heuer, Jimmy Choo, Volvo, German Audi, BMW, Ford etc. India - vast market for aviation sector-Helicopters and Choppers, high cost large screen LCD and LED TVs, Canon cameras and printers, Samsung Smart Phones, Blackberry, LG refrigerators and TVs. 100 pieces of World’s largest LCD TV costing 1 Mn USD were bought by India www.cmai.asia

18. Unleashing Indian Telecom Innovations World’s highest monthly addition, second largest base in world, $ 110 Bn. investments needed in Telecom sector during 2012- 2017 $ 40 Bn. for Pan-India Broadband rollout and augmenting transmission network. New innovative ways of doing business First to introduce Managed Services and Infrastructure sharing Lowest acquisition cost for new connection..half dollar for life time. Missed call, Caller Back Ring Tone, Dynamic discounting, Battery life, World’s smallest recharge and lowest cost cell phone SMS based earnings due to TV games, greetings, jokes, social networks, VAS contents Sachet VAS pricing, 0.018 USD (INR 1) per day use etc www.cmai.asia

19. Gen I ….Indian Hot Market Gen I’ers are increasingly becoming the public face of the new India—emblems of national optimism, energy, and growth. Members of Gen I believe in living in the present and indulging themselves more than their parents do. Beauty and personal-care market has grown 20 times over the past 20 years. Are also worldlier, with greater exposure to global events and trends, making them much more demanding. www.cmai.asia

20. India….as a Centre for Innovations India has a vast pool of innovative and talented human resource. India produces over 200,000 engineers every year. The Government proposes to enhance the number of post graduates and PHd. in electronics, so that abundant manpower is available for electronics industry to grow and flourish. Estimated production of electronic in India is expected to reach USD 104 Bn. by the year 2020, creating a gap of USD 296 Bn. in demand and production. This creates a unique opportunity for companies in the Electronic System Design & Manufacturing sector India can be source of Innovations to grow and market in big way Time to look at India to set up Innovation Centers, manufacturing units and explore opportunities in electronics by joining hands with local entrepreneurs. www.cmai.asia

21. CES promoting Innovations CEA has been at forefront for Innovations in world. Mr Gary is now known as Innovation Wizard. CES is world’s largest consumer show promoting Innovations. Developing Countries present big market. India has been the epicenter of consumer demand for electronics, telecom, IT. While demand increased across all sectors, demand for high technology products, specifically electronic products has registered significant growth and going by current estimates, the demand for electronics hardware in the Country is projected to increase from USD 45 Bn. in 2009 to USD 400 Bn. by 2020 It will help big way to promote innovations, if Consumer show like CES is organized in India to cater to Developing Countries. www.cmai.asia

22. Suggestions We owe to our future generations for a better world Need for free flow of available knowledge and instruments, so that these innovations can reach the masses globally and become affordable. Developing Countries have different kinds of necessity—starting from mobile phones to efficient billing of electricity, water, and gas, or for disbursal of food grains or cash transfer for the poor. Electronics has an important role to play, not only to reduce the paper work, but also to ensure that food and money reach the designated beneficiary. There are several Premier Institutions across globe playing important role for innovations, for example in India- Indian Institute of Technology, Regional Engineering Colleges, Birla Institute of Technology etc. Cooperation between Industry-Industry, Research Institutes-Research Institutes, Association-Association www.cmai.asia

23. About CMAI CMAI prime Integrated Association of India representing all verticals of ICE, telecom sector of India in India having 48.500 members and more than 54 MOUs with International organizations with branch offices in USA, UK, Japan, Korea, Singapore, Taiwan, China and Malaysia. It offers one window service for information dissemination, guidance on setting up businesses in India. It connects to Industries, Government, Trade and Business It is involved in policy formulations with Government and other stake holders or Technology Innovations, Indigenous manufacturing It assists manufacturers to maximize competitiveness in the domestic and international markets. It also offers consultancy services on turn key basis through its member companies www.cmai.asia

24. About TEMA Established on 1st June, 1990, TEMA is recognized by the Government of India as the National Apex body to represent telecom Technology Providers, Global and Indian, Private and Government owned companies. Being the official mouthpiece of telecom manufacturing industry, TEMA plays the critical role of: Advising the government and influencing decisions relating to telecom industry. Nominating names of technical experts from the industry to various telecom committees of the Government of India and major national industry associations. www.cmai.asia

25. Thanks get Connected nkgoyals@yahoo.co.innkgoyals@yahoo.co.in Ph No. - +91 98111 29879 Presentation available at www.cmai.asia home pagewww.cmai.asia