Free Courses Sale ends Soon, Get It Now
Free Courses Sale ends Soon, Get It Now
Source: HINDU
Disclaimer: Copyright infringement not intended.
Supported by the ₹1-lakh crore fund announced in the interim Budget, DRDO is set to launch a new initiative to focus its research on emerging military technologies.
Each of the five proposed projects has been earmarked for a maximum of ₹50 crore, with the funding to be distributed in five tranches.
DRDO’s approach is modeled after the U.S. Defense Advanced Research Projects Agency (DARPA), which is known for fostering revolutionary military technologies.
Like DARPA, DRDO seeks to engage the private sector—particularly MSMEs and startups—through the Technology Development Fund (TDF).
Deep technology (deep tech) refers to innovations grounded in scientific research and technological breakthroughs that have a transformative impact on society.
Deep Tech refers to startups or innovations based on substantial scientific advancements and high-tech engineering processes.
Unlike traditional startups that focus on improving existing technologies or providing digital solutions (like apps or e-commerce platforms), deep tech ventures aim to solve complex problems by developing disruptive technologies rooted in cutting-edge research.
Deep tech includes fields such as artificial intelligence (AI), robotics, quantum computing, biotechnology, advanced materials, and more.
Deep tech solutions rely on significant advancements in science and technology, often originating from academic or R&D institutions. Developing deep tech products typically requires intensive research, substantial funding, and a long-term development cycle.
Unlike consumer tech startups that can quickly scale, deep tech ventures often require longer timeframes to mature due to the complexity of the research and development process.
|
Funding and Investment |
Deep tech ventures require long-term financial backing, as they may not provide immediate returns. Investors may hesitate due to the uncertain risk-reward profile. |
|
Talent Shortage |
Specialized skills in fields like AI, quantum computing, or biotechnology are required, making it difficult to find and retain professionals with deep tech expertise. |
|
High R&D Costs |
Intensive research and development in deep tech demand large financial resources, often more than what a typical tech startup can afford. |
|
Commercialization Barriers |
Transitioning from the lab to market is difficult, as many deep tech innovations struggle with scalability due to infrastructure or ecosystem readiness. |
|
Regulatory Hurdles |
Strict regulations, especially in sectors like biotechnology or AI, can significantly slow down the product approval and commercialization process for deep tech. |
|
Longer Development Timelines |
Deep tech ventures often have longer timelines from research to market deployment, making it challenging to maintain investor interest and momentum. |
|
Uncertain Market Demand |
Market demand for deep tech innovations may not be fully developed, leading to challenges in securing customers, partnerships, and market fit. |
The National Deep Tech Startup Policy (NDTSP) is a comprehensive initiative that aims to foster the growth and sustainability of deep tech startups in India.
With the overarching goal of transforming India into a global leader in deep technology, the draft policy aligns with the vision of promoting innovation, economic growth, and societal development.
The draft policy recognizes deep tech’s disruptive potential and outlines how it can accelerate India’s transition to a knowledge-driven economy, thus positioning the country as a global hub for advanced technology industries.
The vision of the NDTSP is clear: to drive innovation, promote societal development, and secure India’s financial future by unleashing the potential of deep tech startups.
This vision aligns with larger national objectives such as Atmanirbhar Bharat and aims to ensure India's global competitiveness in the high-tech sector.
The policy is built upon four key pillars:
The NDTSP outlines nine policy priorities :
The absence of a standard definition of deep tech is a fundamental issue that hampers the proper classification and growth of deep tech startups in India.
This gap affects funding, regulatory support, and policy interventions tailored to the unique requirements of deep tech ventures.
As of May 2023, India boasts over 10,298 DPIIT-recognized startups in various deep tech sub-sectors. This indicates a robust and expanding ecosystem, although detailed classification across sub-sectors is necessary to provide targeted support.
A significant number of these startups operate on a B2B model, indicating that deep tech innovations are largely serving enterprise clients. This focus underscores the need for policies that address the specific challenges of B2B startups, such as longer sales cycles and higher capital requirements.
Over the last decade, deep tech startups in India have seen significant funding and an increase in mergers and acquisitions (M&A). This trend highlights the growing confidence of investors in the sector, but further support is required to maintain this momentum, especially for early-stage startups.
India's startup ecosystem benefits from several policies and initiatives, such as the Biotechnology Innovation Fund, Startup India Fund of Fund Scheme, and BIRAC SEED Fund. These schemes, along with public procurement relaxations for startups, are crucial but need to be expanded to cater specifically to deep tech startups with their distinct challenges of long incubation and high R&D costs.
India has launched multiple initiatives to support innovation across sectors. The NDTSP aims to integrate these schemes into the deep tech domain for sustained growth:
|
TIDE 2.0 Scheme and iDEX |
Provides high quantum seed funding for scaling deep tech startups, essential for the capital-intensive nature of deep tech innovations. |
|
National Research Foundation (NRF) |
Promotes R&D across universities and research institutions, fostering grassroots-level innovation and supporting deep tech startups. |
|
Inclusion Initiatives |
Programs like Digital India BHASHINI and GENESIS focus on digital inclusion from Tier II/III cities, expanding deep tech innovation to underrepresented regions. |
|
Sector-Specific Policies |
Policies like Indian Space Policy 2023 and SpaceTech Innovation Network (SpIN) support deep tech startups in sectors like space technology. Similar approaches can be applied to biotech, AI, and quantum computing. |
Countries have established dedicated startup campuses as collaborative hubs for deep tech innovation. These campuses attract talent, investors, and universities, fostering growth and advancement.
Countries have launched comprehensive brand campaigns to promote their deep tech ecosystem, showcasing their strengths and unique offerings. This campaign enhances internal credibility and attracts global stakeholders, generating further interest and investment.
For attracting global talent and experienced mentors, countries have implemented international startup residence programs, acting as magnets for individuals who contribute to local deep tech founders' growth and development, bringing diverse perspectives and expertise.
Governments also introduce tax incentives and relevant exemptions to encourage deep tech investments, creating a favourable investment climate and stimulating financial support for ventures.
UK Catapult, Belgium’s WSL (Wallonia Brussels Startup Launchpad), Germany's EXIST Program, and Canada's Innovation Superclusters Initiative are some examples of deep tech ecosystems that highlight the importance of collaboration, sector-specific focus, comprehensive support, funding access, internationalisation support, and entrepreneurship education in deep tech ecosystems
Establishing a standard definition and conducting a comprehensive mapping of the deep tech ecosystem are crucial steps to ensure that startups are appropriately classified and supported.
Similar to the Indian Space Policy 2023, India should draft sector-specific policies for other critical areas like biotech, quantum technology, and AI. This will provide a clearer regulatory framework and encourage startups to innovate without regulatory roadblocks.
Introducing global startup residence programs and incentives for foreign venture capital could dramatically enhance India's appeal as a deep tech hub.
India should establish deep tech specialization programs in universities to nurture the next generation of talent. Collaborating with global academic institutions would help elevate India's research and development capabilities.
Sources:
|
PRACTICE QUESTION Q:What is Deep Tech? Discuss its significance in the context of India's innovation ecosystem. (250 words) |
© 2024 iasgyan. All right reserved