IPR MSMEs and Innovations

The move towards a well knowledge networked society may happen through pro patent ecosystem. MSME clusters are the perfect place for innovations to happen. There are number of studies showing that there is direct relationship between IPR, innovations and MSME survival. Recently a number initiatives on geographical indications (GI) have been initiated in India. Such GI registration may prove helpful if some kind of enforcement system is put in place.

Unfortunately the most of MSME, enterprises are not in a position to take advantage of their Intellectual Property due to their size constraints. The current market situation is not very conducive for MSME innovation to happen. It is therefore necessary to provide a strong policy support for such initiatives. Austrian Institute of SME research has come out with avery interesting piece of work on " Benchmarking National and Regional Support Services for SMEs in the Field of Intellectual and Industrial Property" highlighting theoretical issues on SME patenting and case studies. The full report is available at http://www.proinno-europe.eu/admin/uploaded_documents/Benchmarking-Report-SME.pdf

Cluster approach necessary for SMEs development’

There are areas such as leather and footwear, textile and garments, auto components and electronics, CD approach is very useful. Most of these verticals are driven by high degree of subcontracting, to reduce the transaction cost of subcontracting CD approach can help in - improved networking among different sub contractors and manufacturers, learning of best practices/ benchmarks, leveraging on common hard and soft infrastructure especially for sub contractors. Dr V. Krishnamurthy, while delivering the keynote address at the first Cluster Summit in Chennai, organised by the Confederation of Indian Industry (CII) and United Nations Industrial Development Organisation, he said NMCC is giving importance to cluster development.
http://www.thehindubusinessline.com/2008/04/24/stories/2008042451911200.htm

Policy and Status Paper on Cluster Development in India

Recently, MSME Foundation has published a book on Policy Status on Cluster Development in India. The purpose of the book is take stock of the last 10 years experience of cluster development approach and its impact on the local economy especially in industrial and artisan clusters. Cluster Development Program (CDP) has become very popular in the last 10 years especially CDP of UNIDO, which started in 1996 with pilot interventions in four clusters ( Tirupur, Ludhiana, Pune and Jaipur). In the last 10 years the approach has roped in 1358 industrial and artisan clusters and till 2007 more than Rs 700 crore have been spend on different cluster based interventions.
There is no doubt that the CD approach has become very popular during this period.
The book highlights that how more than 22 countries in the world evolved their local industrial development around clusters. The approach is now believed to be used in more than 50 countries to help MSMEs in artisans and industrial clusters. It says that there is strong cluster effect in terms of higher efficiency of the firm situated in clusters.
The book suggest that on policy level there are two major challenges these are the right definition of the cluster and mapping of clusters. It suggested accessibility a main criteria for definition however local government may have their own definition of clusters. The focus of for cluster development policy should remain around inclusiveness, equity and competitiveness. The Book harp on the fact that to implement cluster development programme both soft and hard interventions are equally important. It has given 16 policy suggestions for optimum cluster development. The complete book is available at http://www.msmefoundation.org/pdf/cluster%20policy%20and%20status.pdf