INNOVATION AND ENTREPRENEURSHIP

IE2001E

Centre for Innovation Entrepreneurship and Incubation (CIEI)

National Institute of Technology Calicut
 Contents

1 Introduction to Innovation and Idea Development ............................................................ 1

1.1 Introduction to Innovation .............................................................................................. 1

1.2 Innovation Process and Risk ........................................................................................... 1

1.3 Innovation management .................................................................................................. 2

1.3.1 Collection of ideas ...................................................................................................... 2

1.3.2 Selection of ideas ........................................................................................................ 2

1.3.3 Experimentation with Ideas ........................................................................................ 3

1.3.4 Developing Business Models ...................................................................................... 3

1.3.5 Iterative Business Models ........................................................................................... 3

1.4 Classifications of Innovation .......................................................................................... 4

1.4.1 Discontinuous Innovation ........................................................................................... 4

1.4.2 Incremental Innovation ............................................................................................... 5

1.4.3 Breakthrough innovation ............................................................................................ 5

1.4.4 Radical innovation ...................................................................................................... 5

1.5 Innovation and Invention ................................................................................................ 6

1.6 Concept of Design Thinking ........................................................................................... 6

1.7 Four Stages of Design Thinking ..................................................................................... 7

1.7.1 Clarify ......................................................................................................................... 7

1.7.2 Ideate ........................................................................................................................... 7

1.7.3 Develop ....................................................................................................................... 7

1.7.4 Implement ................................................................................................................... 7

1.8 Process of design thinking .............................................................................................. 8

2 Product Identification ........................................................................................................... 9

2.1 Technology Product Development .................................................................................. 9

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2.2 Reasons for New Product Development ....................................................................... 10

2.2.1 Survival Strategy ....................................................................................................... 10

2.2.2 Satisfying Unfulfilled Needs..................................................................................... 10

2.2.3 Addressing Competition ........................................................................................... 10

2.2.4 Declining Profit Margins ...........................................................................................11

2.2.5 Saturation of Existing Products .................................................................................11

2.3 Product life Cycle ..........................................................................................................11

2.3.1 General Products or Services .....................................................................................11

2.3.2 Technological Product Life Cycle ............................................................................ 12

2.4 New Product development ............................................................................................ 13

2.4.1 Idea generation .......................................................................................................... 13

2.4.2 Idea Screening ........................................................................................................... 14

2.4.3 Concept development and Testing ............................................................................ 14

2.4.4 Business Analysis...................................................................................................... 14

2.4.5 Product Development................................................................................................ 14

2.4.6 Market Testing .......................................................................................................... 15

2.4.7 Market Entry and Commercialization stage ............................................................. 15

2.5 Issues and Challenges in Commercialization of Technology Innovations Lack of

Motivation ................................................................................................................................. 15

2.5.1 Mindset ..................................................................................................................... 16

2.5.2 Disconnect................................................................................................................. 16

2.5.3 Skill ........................................................................................................................... 16

2.5.4 Funding ..................................................................................................................... 16

2.5.5 Infrastructure ............................................................................................................. 17

2.5.6 Timeline .................................................................................................................... 17

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 2.5.7 Market access ............................................................................................................ 17

3 Intellectual Property Rights ............................................................................................... 18

3.1 Intellectual Capital ........................................................................................................ 18

3.2 Intellectual Assets ......................................................................................................... 18

3.3 Intellectual Property ...................................................................................................... 20

3.4 Types of Intellectual Properties .................................................................................... 20

3.4.1 Trademarks................................................................................................................ 21

3.4.2 Copyrights ................................................................................................................. 22

3.4.3 Trade Secrets ............................................................................................................. 22

3.4.4 Geographical Indicators ............................................................................................ 22

3.4.5 Patents ....................................................................................................................... 22

3.5 Evolution of Patent Amendments in India .................................................................... 23

3.6 Patent Filing and Granting Process ............................................................................... 24

3.7 Role of the Controller of Patents .................................................................................. 24

4 Entrepreneurship ................................................................................................................. 26

4.1 Scope of Entrepreneurship ............................................................................................ 26

4.2 Characteristic of an entrepreneur .................................................................................. 27

4.2.1 Curiosity.................................................................................................................... 27

4.2.2 Willingness to Experiment ........................................................................................ 27

4.2.3 Adaptability............................................................................................................... 27

4.2.4 Decisiveness .............................................................................................................. 27

4.2.5 Self-Awareness.......................................................................................................... 27

4.2.6 Risk Tolerance........................................................................................................... 28

4.2.7 Comfort with Failure................................................................................................. 28

4.2.8 Persistence................................................................................................................. 28

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4.2.9 Innovative Thinking .................................................................................................. 28

4.2.10 Long-Term Focus .................................................................................................. 28

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 1 Introduction to Innovation and Idea Development

1.1 Introduction to Innovation

India, at this juncture, requires a fundamental shift in its approach to development and innovation
plays a pivotal role in this transformation. Entrepreneurship, combined with new business models,
can significantly impact the country's growth trajectory. Today, we witness the emergence of
several innovative business models that challenge conventional approaches.

Globally, services such as WhatsApp, YouTube, Gmail, and Facebook have become integral to
daily life. These platforms offer their services free of cost, yet they generate substantial profits.
This raises a thought-provoking question about how these companies achieve profitability without
direct charges to users. Traditionally, businesses operated on a clear exchange of value, where
payments were made for tangible goods or services. In contrast, modern platforms provide free
services, leaving their revenue-generation strategies less visible to users.

By understanding the mechanisms behind such innovations, one can identify ways to
commercialize their ideas and develop sustainable enterprises. The ultimate goal is to inspire
actions that not only generate revenue but also create employment and contribute to the broader
economic development of the nation.

1.2 Innovation Process and Risk

Innovation is often misunderstood as a smooth, linear process where a novel idea leads directly to
implementation, commercialization, and impact. However, this perception is incorrect. Innovation
is highly iterative, involving numerous experiments, revisions, and refinements before achieving
the desired impact. The process requires patience and resilience, as the journey includes forward
and backward movements. Innovation involves risk-taking but not reckless risk. It is about
assessing and mitigating risks effectively. The iterative nature of innovation often increases costs
and delays product delivery. To counter this, innovators should develop mitigating strategies to
minimize losses. Clear understanding and preparation for the challenges of the innovation journey
are essential.

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1.3 Innovation management

Innovation management can be broken down into five key steps: 1) collection of ideas, 2) selection
of ideas, 3) experimentation with ideas, 4) developing business models, and 5) iterative business
models. Though literature may describe a variety of steps, this course will focus on above five
essential stages. These steps will be discussed in more detail in subsequent sessions.

1.3.1 Collection of ideas

The first step is the collection of ideas, which begins with curiosity. Innovation programs start with
a desire to generate ideas, and the more ideas we have, the better. At the outset, the focus should
be on the quantity of ideas, not their quality. It is crucial to avoid prematurely evaluating or
dismissing ideas. Often, when someone presents an idea, the next step is immediately begin to
assess its merits or usefulness. However, in the initial phase of an innovation management
program, it is important to prioritize the collection of as many ideas as possible, without limiting
ourselves to only those that seem immediately useful.

1.3.2 Selection of ideas

Once the sufficient number of ideas are accumulated, the next step is the selection process. This
involves evaluating the ideas collected in the first stage. By this point, an "idea bank," is created
which consists of ideas with varying qualities. Some ideas will be ready for immediate
implementation, others may require further development or mentoring, and some may be discarded
altogether. It's important to have a diverse set of ideas to choose from, as this will enable the
subsequent stages of innovation. Without a sufficient number of ideas, the selection and
implementation steps cannot proceed.

The evaluation of ideas requires careful consideration. There may be multiple stages of evaluation,
and the criteria for selection will vary from one organization to another. For instance, an idea may
need to be presented or prototyped before it can be evaluated. There is no universal method for
selecting ideas; organizations must develop their own criteria based on their specific needs. Some
may use a two-stage selection process, while others may employ more stages, depending on their
requirements.

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1.3.3 Experimentation with Ideas

The next step is experimentation with the ideas. This is where prototypes are developed and tested.
It is essential to understand that sometimes, when experiments don't yield the desired results, they
are not necessarily failures. Rather, they can provide valuable insights that guide further
development. The experimentation phase is about learning and iterating, rather than expecting
immediate success. It's important to recognize that experiments never fail—they simply provide
new learnings. Every experiment, regardless of the outcome, teaches us something valuable. The
process of experimentation is iterative.

Moving through the stages of idea collection, idea selection, experimentation, developing business
models, and creating impact is not a linear process. Instead, it involves constant revisiting and
refining. For instance, after selecting ideas, you may find that some ideas are exciting but lack
sufficient material to proceed. In such cases, you may need to revisit the idea collection phase for
further elaboration. Similarly, when experimentation does not yield the expected results, you may
need to return to either the idea selection or idea collection phase for improvements or additional
ideas.

1.3.4 Developing Business Models

Once you obtain positive results from experimentation, the next step is to develop a business model
to commercialize the idea. This stage may also require modifications based on feedback, and it is
possible that iterations will be necessary to refine the business model.

After finalizing the business model, the next phase involves creating impact, which entails
diffusing the innovation to society. This diffusion strategy may need to be adjusted depending on
the market—urban, rural, consumer products, or digital products—each of which may require
different approaches.

1.3.5 Iterative Business Models

Each stage of the five-step model—idea collection, idea selection, experimentation, business
model development, and diffusion—may involve significant back-and-forth movements and
numerous iterations. This iterative nature highlights that innovation is not a simple linear process,
but rather a series of experiments and refinements. As a result, innovation programs often take

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more time than initially expected due to the extensive experimentation and iterations involved at
each stage. This iterative approach supports the idea we discussed earlier: innovation is a process
that evolves through continuous experimentation, not a straightforward, one-time effort.

1.4 Classifications of Innovation

Innovation can be classified in multiple ways, and there is no universally agreed scheme for its
classification. Different authors, books, and research papers present varied frameworks for
categorizing innovation. Based on the novelty and impact, innovation can broadly be classified
into discontinuous innovation, incremental innovation, breakthrough innovation and
radical/disruptive innovation.

1.4.1 Discontinuous Innovation

Discontinuous innovation is characterized by transformative changes that create entirely new

markets or disrupt existing ones. These innovations introduce groundbreaking ideas or
technologies that fundamentally alter consumer behavior and industry practices. They often render
existing products or systems obsolete, requiring consumers and businesses to adapt. For example,
the invention of the internet and the shift from traditional to digital photography are classic
examples of discontinuous innovation. While they carry high risks, their potential rewards are
equally significant, as they pave the way for entirely new industries.

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1.4.2 Incremental Innovation

Incremental innovation focuses on making small, continuous improvements to existing products,

services, or processes. These enhancements optimize functionality, efficiency, or quality without
drastically altering the product’s core purpose. Incremental innovations are low-risk and cost-
effective, making them a reliable way to maintain market competitiveness. Examples include
adding advanced camera features to smartphones or improving fuel efficiency in cars. This type of
innovation is particularly useful for businesses looking to sustain their position in mature markets.

1.4.3 Breakthrough innovation

Breakthrough innovation lies between incremental and discontinuous innovation. It involves

significant technological or performance advancements within existing markets. These
innovations open up new possibilities and often result from extensive research and development
efforts. Breakthroughs are typically difficult for competitors to replicate quickly, giving the
innovating company a temporary edge. For instance, CRISPR technology in genetic engineering
and the introduction of high-definition television (HDTV) are examples of breakthrough
innovations that significantly enhanced existing industries.

1.4.4 Radical innovation

Radical innovation introduces entirely new products, services, or business models that reshape
industries and create new markets. Radical innovations often overlap with discontinuous
innovations due to their transformative nature. They involve high levels of technological change
and risk, as market acceptance can be unpredictable. Examples include blockchain technology and
the commercialization of space travel by companies like SpaceX. While radical innovations can
revolutionize industries, their high-risk nature demands visionary leadership and substantial
investment.

For innovation to succeed, all three elements—Idea, Implementation, and Impact—must work
together. This framework can be applied to evaluate whether a particular phenomenon qualifies as
innovation. Importantly, the process begins by staying alert to new ideas, keeping one’s eyes, ears,
and mind open to possibilities. During the early stages, it’s essential not to over-evaluate ideas but
to encourage their generation and flow. The distinction between innovation and invention lies in
this holistic approach of ideation, implementation, and impactful outcomes.

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1.5 Innovation and Invention

Innovation differs from invention by incorporating impact. Invention refers to developing

something new, typically confined to controlled environments like labs or experimental setups. It
involves conceiving and executing a concept but remains within the boundaries of research or
academic reports. Innovation, on the other hand, occurs when an invention creates an impact—
whether through commercialization, practical application, or societal influence.

1.6 Concept of Design Thinking

Design thinking, systems thinking, and lateral thinking are the three major schools of creative
thinking in innovation management. Design thinking is one of the most popular frameworks,
emphasizes applying design principles to innovation. A key takeaway from design thinking is its
solution-focused mindset, as opposed to a problem-focused approach. For instance, instead of
dwelling on issues like inefficiency, a designer's mindset seeks to transform these challenges into
opportunities and develop solutions.

Design thinking is a human-centered approach to innovation that emphasizes empathy and

understanding the user's behavior, emotions, anxieties, and aspirations. In this approach, the user
or person facing the problem is always at the center of the discussion. This method aligns closely
with the principles of marketing, where the customer is central to all strategies. However, in design
thinking, the focus is on the user, examining characteristics such as purchasing power, emotions,
and aspirations to tailor solutions.

A key enabler of design thinking is prototyping, which facilitates rapid iterative improvement.
Technologies like 3D printing have made this process cost-effective and efficient, allowing for
multiple iterations without significant expense. Previously, experimenting with ideas and making
iterations was prohibitively expensive, but advancements in technology have transformed this
process, making design thinking a preferred framework for innovation.

Collaboration with cross-functional teams is another essential element of design thinking. User
needs often span various aspects such as quality, cost, speed of delivery, and new features.
Addressing these diverse aspirations requires input from multiple departments, not just the new
product development (NPD) team. Cross-functional collaboration ensures a holistic approach to
meeting user demands.

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1.7 Four Stages of Design Thinking

Design thinking comprises of four key stages: Clarify, Ideate, Develop, and Implement, each
playing a crucial role in crafting innovative and effective solutions.

1.7.1 Clarify

The clarify, focuses on understanding the problem and the users' needs. This involves gathering
insights through research methods like interviews, surveys, and observations to empathize with
users and uncover their pain points. The objective is to define the problem clearly, often using tools
such as empathy maps or problem statements, ensuring that the team has a focused direction for
the next steps. A well-framed problem statement serves as the foundation for innovative solutions.

1.7.2 Ideate

In the Ideate stage, the emphasis shifts to generating a wide range of creative solutions.
Brainstorming sessions, mind mapping, and asking "how might we" questions are common
techniques used to encourage diverse thinking. This stage promotes collaboration and exploration
of unconventional ideas without judgment. By the end of this phase, the most promising concepts
are selected for further development.

1.7.3 Develop

The Develop stage involves creating prototypes of the selected ideas. These prototypes, whether
they are physical models, sketches, or digital mockups, provide a tangible representation of the
solution. Testing these prototypes with users allows for collecting feedback, identifying flaws, and
iterating to refine the concept. This iterative process ensures that the solution aligns with user needs
and expectations, reducing risks before full-scale implementation.

1.7.4 Implement

Finally, in the Implement stage, the refined solution is brought to life and delivered to the target
audience. This phase includes scaling the solution, planning its production or deployment, and
assessing its impact. Real-world feedback is used to make further improvements if needed.
Effective implementation requires alignment with technical feasibility, business goals, and user
satisfaction, ensuring the solution’s success.

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1.8 Process of design thinking

The design thinking process is a structured approach and is divided into two phases: the Problem
Phase and the Solution Phase. The Problem Phase begins with the Understand, where the focus is
on comprehending the user's needs and challenges through inquiry and research. This is followed
by the Observe, which involves analyzing user behavior and interactions to gain real-world
insights. The final step in this phase is defining the Point of View, where the problem is clearly
articulated from the user's perspective based on the observations.

In the Solution Phase, the process starts with Ideate, where brainstorming and generating creative
ideas take place to address the defined problem. Next is the Prototype step, which involves creating
tangible representations of the ideas for quick experimentation and feedback. Finally, in the Test
step, these prototypes are evaluated with users to gather feedback and refine the solutions. This
process is iterative, ensuring a thorough and user-centered approach to problem-solving.

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 2 Product Identification

2.1 Technology Product Development

The design and development of new products are essential for organizations to ensure survival and
growth in competitive markets. Introducing innovative products allows companies to adapt to
evolving technologies, changing customer preferences, and competitive dynamics. Continuous
research and development, along with the generation of new ideas, enable organizations to create
incremental innovations (small, consistent improvements) and breakthrough innovations (radical
changes) to stay relevant. These innovations are critical for maintaining market share and
achieving growth by launching improved or entirely new products.

Observing everyday items reveals how products evolve over time in terms of design and
technology. For instance, examining the changes in five common products can illustrate significant
advancements, highlighting the importance of innovation in product transformation. This process
underscores why companies prioritize new product development as part of their strategy to secure
a competitive edge.

The product design process begins with the conceptualization of an idea, which is then transformed
into reality. This transformation involves generating ideas, preparing detailed specifications, and
addressing constraints such as production processes and customer expectations. Specifications
play a critical role in ensuring that the product aligns with the intended design and meets user
needs.

During product development, the design must accommodate various manufacturing processes. For
instance, designing a product for casting requires specific guidelines, while forging-based designs
demand distinct considerations. Understanding these manufacturing constraints ensures that the
product design is feasible and aligns with production capabilities. In this context, detailed
specifications for each manufacturing technique become essential, helping to bridge the gap
between conceptual design and practical implementation.

By focusing on innovation, customer-centricity, and manufacturing feasibility, organizations can

effectively transform ideas into market-ready products, ensuring both survival and growth in an
ever-changing marketplace.

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During the product design stage, various aspects of the product are analyzed to make informed
decisions regarding its development. This analysis includes evaluating key factors such as value
engineering, which focuses on the cost-effectiveness of the product, marketing aspects to
understand customer needs, and product characteristics like durability, dependability, and
reliability. Additionally, economic and reliability considerations are assessed to ensure the product
is viable and performs consistently. Standard procedures and techniques are employed to analyze
these factors, addressing essential parameters like dimensions, tolerances, and material selection
for each component. The choice of materials is particularly critical, as it directly influences the
product’s functionality and cost-effectiveness. For example, a laptop might use a metallic body for
durability, while a desktop might feature a plastic body to reduce costs. Similarly, pens and pencils
demonstrate the importance of material selection in meeting specific purposes and user needs.

New product development is essential for organizations to survive and grow in competitive
markets. Innovation helps businesses remain relevant and sustain their market presence.
Companies that fail to innovate risk losing their business, as seen with many organizations that
could not evolve their product designs. Developing new products ensures long-term survival,
supports growth, and helps meet changing customer demands while maintaining a competitive
edge. Thus, careful analysis and innovation are indispensable in the product design and
development process.

2.2 Reasons for New Product Development

2.2.1 Survival Strategy

Organizations design new products to meet unfulfilled customer needs and sustain their business.
There are numerous examples of companies identifying market needs, satisfying them, and
achieving significant profits.

2.2.2 Satisfying Unfulfilled Needs

Developing new products addresses gaps in the market that existing products fail to meet.
2.2.3 Addressing Competition
Intense competition in the existing product line drives the need for innovation. For example, in
the automotive industry, companies initially offering limited variants expanded their product lines
due to competition, creating more options for customers.

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2.2.4 Declining Profit Margins

Profit margins tend to decline in competitive markets, prompting companies to develop innovative
products to regain profitability.

2.2.5 Saturation of Existing Products

When a company’s product line becomes saturated, and sales start to decline, developing new
products becomes necessary to revive growth. These points are closely related to the product life
cycle, particularly the maturity phase, where competition and reduced profits are prominent. Such
challenges emphasize the importance of continuous innovation for sustained business success. The
importance of product design is crucial as it significantly influences the price, quality, and cycle
time of a product.

2.3 Product life Cycle

2.3.1 General Products or Services

The product life cycle (PLC) is a key concept in product development and refers to the stages a
product's sales and profits go through during its lifetime. The product life cycle is derived from
the observation that a product’s sales volume and revenue typically follow a predictable pattern
consisting of four phases: Introduction, Growth, Maturity (or Stabilization), and Decline.

In the Introduction phase, the product is launched in the market, and initial sales may be slow as
customers become aware of the product. During the Growth phase, sales and profits increase as
the product gains popularity and market acceptance. The Maturity phase sees sales reaching a peak
and stabilizing as the product becomes established in the market. Finally, in the Decline phase,

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sales and demand decrease due to factors like market saturation, technological advancements, or
competition.

2.3.2 Technological Product Life Cycle

In the first stage, Early Adopters play a crucial role. These individuals or groups are willing to take
risks and explore new ideas or concepts before they are widely tested. This phase is often referred
to as Incubate, where the product is being evaluated for its potential in the market. Feedback from
early adopters is essential for refining the product and preparing it for larger-scale adoption.

Next is the Scale phase, driven by the Visionaries—individuals who recognize the potential of the
product and invest in its early success. This phase is characterized by hypergrowth as the product
gains widespread consumer acceptance. Companies focus on scaling their operations, capturing
market share, and building momentum to drive further adoption.

As the product becomes widely accepted, it enters the Maturity phase, dominated by the
Pragmatists. These are mainstream consumers who adopt technology once it has been proven
reliable and established in the market. During this stage, growth slows as the market reaches
saturation. Products become widely used but experience limited innovation or expansion.

Finally, the Discontinuity phase marks the decline of the product. This stage is associated with
Conservatives and Laggards, who are slower to adopt new technologies and may rely on outdated
alternatives. Sales begin to decline, and competitors or alternative offerings start taking market
share. This stage emphasizes the need for companies to innovate or risk becoming obsolete.

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This framework illustrates the importance of aligning product strategies with the target audience
at each stage of the life cycle. It helps businesses understand consumer behavior and plan their
marketing and innovation efforts effectively to maximize success throughout the product's journey
in the market.

2.4 New Product development

The process of New Product Development (NPD) involves systematic steps to bring an idea to the
market successfully. These steps ensure that the product is feasible, meets customer needs, and is
profitable for the company. Below is a detailed explanation of each step with examples for better
understanding.

2.4.1 Idea generation

The first stage is Idea Generation, where potential ideas for new products are created. These ideas
may stem from various sources such as customer feedback, competitor analysis, employee
suggestions, or market trends. For instance, a smartphone company might notice a growing
demand for foldable screens due to the increasing emphasis on portability. Inspired by this, the
company generates the idea of developing a foldable smartphone. Other sources of ideas could
include analyzing new technologies, exploring unmet customer needs, or conducting
brainstorming sessions within the organization.

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2.4.2 Idea Screening

Once ideas are generated, they undergo Idea Screening, where impractical or unprofitable ideas
are filtered out. This stage involves evaluating the feasibility, risks, and alignment of the ideas with
the company’s goals. For example, the smartphone company evaluates the foldable phone idea
based on market demand, production costs, and potential competition. If the company determines
that foldable screen technology is now affordable and early entry into the market could give them
an edge, the idea is retained. However, ideas such as developing a fully transparent smartphone
might be discarded due to high production costs and technical challenges.

2.4.3 Concept development and Testing

The next step is Concept Development and Testing, where the shortlisted idea is expanded into a
detailed concept or prototype. This concept is then tested with potential customers to gather
feedback and refine the product. For instance, the smartphone company creates a prototype of the
foldable phone and presents it to a focus group. Feedback from users reveals that durability is a
key concern, prompting the company to improve the hinge mechanism and make the screen more
resistant to scratches. This stage ensures that the product aligns with customer expectations before
significant investments are made.

2.4.4 Business Analysis

Following this, the company moves to Market Strategy and Business Analysis, where a detailed
plan is created for the product’s entry into the market. This includes determining the target
audience, pricing, marketing approach, and sales goals, alongside conducting a financial analysis
to ensure profitability. For example, the smartphone company might position the foldable phone
as a premium product targeted at tech-savvy professionals. The pricing strategy could involve
setting the price at $1,800 to cover production and R&D costs while signaling exclusivity.
Simultaneously, the company plans a marketing campaign involving social media influencers and
a global launch event.

2.4.5 Product Development

Once the business strategy is finalized, the company proceeds to Product Development, where the
idea is transformed into a tangible product. Engineers and designers work on creating a functional
prototype, ensuring it meets quality and safety standards. For instance, the smartphone company

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might discover during testing that the hinge mechanism weakens after 100,000 folds. They then
refine the hinge design using a stronger alloy to enhance durability. The software interface is also
optimized for the foldable display, ensuring a seamless user experience.

2.4.6 Market Testing

The product then undergoes Market Testing, where it is released on a small scale to test its
performance in real-world conditions. Feedback from early customers is used to make final
adjustments before the full-scale launch. For example, the smartphone company might launch the
foldable phone in select cities to gauge customer responses. If users report issues like a visible
screen crease under certain lighting, the company can modify the design to address this concern.
Additionally, observing higher-than-expected demand during market testing may prompt the
company to scale up production capacity.

2.4.7 Market Entry and Commercialization stage

Finally, the product enters the Market Entry and Commercialization stage, where it is officially
launched. This involves implementing the marketing campaigns, distributing the product, and
ensuring customer support is in place. For example, the smartphone company might launch the
foldable phone globally with advertisements showcasing its unique features like portability and
multitasking capabilities. Influencers and journalists might be invited to the launch event to
generate buzz. Post-launch, the company monitors the product’s performance in different regions
and adjusts its marketing strategies based on customer feedback and competition.

Each of these steps ensures that the product is carefully developed and refined to meet market
needs while minimizing risks and maximizing profitability. By following the NPD process,
companies can effectively bring innovative and successful products to market.

2.5 Issues and Challenges in Commercialization of Technology Innovations Lack of

Motivation

The commercialization of technology innovations is often a complex and challenging process,

involving multiple obstacles that need to be addressed in order to bring an idea from concept to
market.

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2.5.1 Mindset

One of the key challenges is the mindset of the innovators. Many researchers and developers tend
to focus primarily on the technical aspects of their innovations, which can lead to a lack of attention
to the market needs and business considerations. A shift in mindset is necessary, where developers
not only think about the feasibility of the technology but also about how it can be integrated into
the market and what the potential customers truly need.

2.5.2 Disconnect

Another major challenge is the disconnect between the technology being developed and the actual
demands of the market. Innovations may look promising from a technical standpoint, but if they
do not meet the market’s requirements, they are less likely to succeed commercially. This
disconnect often arises from a lack of understanding of market dynamics and user needs, which
makes it essential for developers to engage with the market early on and gain insights into customer
preferences and industry trends.

2.5.3 Skill

The skill gap is another significant barrier. While innovators and researchers may possess
advanced technical skills, they may lack expertise in areas crucial for commercialization, such as
business development, marketing, and finance. Without these skills, the commercialization process
becomes much more difficult. A successful transition from a research environment to a business
environment requires not only technical knowledge but also an understanding of how to manage
resources, market products, and navigate financial systems.

2.5.4 Funding

Funding is often one of the most significant challenges faced during commercialization.
Innovations typically require substantial investment for research, development, and market entry.
Securing adequate funding is crucial, yet it is often a stumbling block, especially in the early stages
of innovation. Without sufficient funding, scaling operations, conducting necessary testing, and
accessing key markets becomes incredibly difficult, if not impossible.

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2.5.5 Infrastructure

Another barrier is the infrastructure needed to support technological advancements. Many

innovations require specialized labs, equipment, and testing facilities, which may not always be
readily available. The absence of these essential resources can impede the development and
commercialization of a technology, as innovations may not be able to be properly tested, refined,
or scaled up.

2.5.6 Timeline

The timeline for technology development can also create uncertainty in commercialization.
Innovations often take years to fully develop, and the process can be highly unpredictable. Delays
in development or unforeseen obstacles can lead to missed market opportunities and can
discourage potential investors. The long timelines associated with technology development make
it essential to have a clear plan that aligns expectations with achievable milestones.

2.5.7 Market access

Market access can be a daunting challenge. Even if a technology is innovative and ready for
market, reaching and penetrating the target audience can be difficult. Niche technologies or those
facing competition from established players may struggle to gain visibility or acceptance. Building
strong distribution channels and creating awareness are vital steps in ensuring that the technology
reaches the right customers.

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 3 Intellectual Property Rights

3.1 Intellectual Capital

Intellectual capital refers to the total knowledge within an organization, which is stored in the
minds of employees. In the past, wealth creation was tied to tangible assets such as land,
agriculture, and later, manufacturing through plants and machinery. Today, however, knowledge
has become the most critical tool for economic growth, exemplified by industries like IT, which
play a major role in India’s economy. Globally, economies are transitioning to knowledge-based
systems, making terms like intellectual capital, intellectual assets, and intellectual property central
to development. Intellectual capital represents the power of the mind, which is now recognized as
a form of property. While property traditionally referred to tangible assets, intangible assets like
knowledge are now equally important.

Intellectual capital is the sum total of all knowledge within an organization. This knowledge resides
in the minds of employees, who are the organization's most valuable resource. To create wealth,
organizations must leverage this knowledge by recognizing and empowering employees. Concepts
like Total Quality Management (TQM), worker participation, and employee empowerment play
vital roles in unlocking the potential of intellectual capital. Ultimately, intellectual capital
emphasizes that every employee possesses unique knowledge that, when effectively utilized,
contributes to the organization’s success and growth. It refers to the value remaining in an
enterprise after removing all tangible assets such as land, buildings, machinery, inventory, and
cash. It is calculated as the value of the firm minus the proceeds from the sale of tangible assets.
This concept is crucial for entrepreneurs, especially when developing startups. Startups often have
minimal tangible assets, focusing more on intellectual capital. In traditional organizations, tangible
assets held greater significance, but with the rise of a knowledge-based economy, intellectual
capital has become a dominant factor in firm valuation.

3.2 Intellectual Assets

Intellectual assets are closely related to intellectual capital. Intellectual assets refer to intellectual
capital that is identified, documented, and available for sharing and replication within the
organization. Since intellectual capital resides in the minds of employees, there's always a risk that
an employee may leave, taking their knowledge with them. To safeguard against this risk,

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organizations need to convert intellectual capital into intellectual assets. This is done by creating
manuals, reports, and documents that can be shared and distributed across the organization. This
ensures that knowledge does not leave with an employee and can be accessed by others, even if
the individual departs. Therefore, converting intellectual capital into intellectual assets makes it
more sustainable and accessible within the organization.

Intellectual assets are the result of converting intellectual capital into documented, shareable, and
replicable knowledge within an organization. This transformation occurs when knowledge is
captured, documented, and made accessible to other employees. By doing so, the organization
ensures that the knowledge remains valuable even if employees leave. Unlike employees, who
come and go at their will, organizations retain ownership of the intellectual assets created through
their employees' work. This concept of intellectual assets emphasizes the organization’s right to
the knowledge developed by employees as part of their employment, underscoring the importance
of managing this knowledge for long-term value.

The creation of intellectual assets follows a systematic process known as the intellectual capital
management process. The first step in this process is scanning the employees' knowledge to
identify valuable information. This can be achieved using tools designed to capture specific types
of knowledge available within the organization. For instance, a marketing manager may possess
detailed knowledge about customer behavior and preferences, developed through years of
interactions with clients. Identifying this knowledge is crucial for capturing it effectively.

Once the valuable knowledge is identified, the next step is to document it. This involves creating
templates and forms where employees can record their insights. The information is then structured
and organized, typically into manuals or guides, making it easier for others in the organization to
access. For example, a marketing manager’s knowledge about customer behavior can be captured
and documented, and shared with other team members. These documents are stored in centralized
locations, such as servers, for easy access across the organization.

After documentation, the knowledge is further augmented and improved over time. As new
insights or updates are gathered, they are incorporated into the existing documents to ensure
continuous learning and improvement. Replication of successful knowledge is another key aspect.
By creating more examples or expanding on successful strategies, the organization maximizes the
value of its intellectual assets. This ongoing process of documenting, updating, and replicating

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knowledge ensures that intellectual capital is effectively leveraged to create greater wealth and
sustain the organization’s success.

3.3 Intellectual Property

Intellectual property (IP) refers to intellectual assets that are protected under applicable laws.
Intellectual property serves as a safeguard for an organization’s knowledge, ensuring that others
cannot misuse or steal it. Different countries have varying laws to protect intellectual assets, and
one of the most recognized forms of intellectual property protection is through patents. While
patents are often used as synonyms for intellectual property rights, there are various other forms
of IP that offer protection to different types of creations.

According to the World Intellectual Property Organization (WIPO), intellectual property refers to
creations of the mind, such as inventions, artistic works, designs, and business-related symbols
and names.

Intellectual property rights (IPR) provide creators or owners of patents, trademarks, and
copyrighted works with the right to benefit from their creations or investments. These rights, which
apply to the work or resources invested in creating a new product, process, material, or design,
allow the creator to reap the benefits of their efforts. Like ownership of physical property such as
land or machinery, intellectual property rights grant the owner the ability to exercise control and
take advantage of their creations.

The concept of intellectual property rights is grounded in human rights, as outlined in Article 27
of the Universal Declaration of Human Rights. It acknowledges that knowledge and creativity are
fundamental human rights and that individuals have the right to protect their moral and material
interests resulting from their creative work. Intellectual property rights are thus globally
recognized as part of human rights, with increasing support for their importance.

3.4 Types of Intellectual Properties

Intellectual properties are broadly categorized into industrial property and copyrights. Industrial
property typically includes tangible outcomes like inventions, designs, and trademarks, such as
patents for cost-efficient inventions or trademarks that distinguish brands. On the other hand,
copyrights protect creative works such as stories, poems, dramas, artistic creations, and research

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papers. This classification highlights the diverse nature of intellectual property and the specific
types of innovation and creativity they safeguard.

Among the various types of intellectual property, three are particularly significant: patents,
copyrights, and trademarks. Each serves a distinct purpose, addressing different aspects of
innovation and creative expression.

3.4.1 Trademarks

Trademarks encompass brand names, slogans, and logos. Trademarks are a powerful form of
intellectual property, helping organizations establish a unique identity. For example, the partially
bitten apple logo is instantly recognized as representing Apple Inc., bringing to mind all the
benefits and quality associated with the company. This demonstrates the utility of trademarks in
building brand recognition and trust among consumers. Trademarks are also highly valuable assets
for businesses, contributing significantly to their intellectual capital. Despite being intangible,
these logos and symbols often hold immense valuation for companies.

One key characteristic of trademarks is their perpetual life, meaning they do not expire, unlike
patents, which typically last 20 years. While patents lose their protection after their term ends,
trademarks can last indefinitely as long as they are maintained. Legally, registering a trademark is
not mandatory. However, registering becomes crucial as the business grows in value and popularity
to protect its unique identity from being copied.

Trademarks reflect the distinctive appearance of a product or its packaging, including elements
like size, shape, color, and texture. However, generic terms cannot be trademarked. For instance,
terms like "cycle" for a bicycle company cannot be trademarked as they are generic names.

Trademarks help distinguish products and protect the brand identity, especially in competitive
markets. Notable global examples of valuable trademarks include Google, IBM, Apple, Microsoft,
and Coca-Cola. These trademarks are not just symbols; they encapsulate the trust, quality, and
reputation associated with their respective companies. The top five most valuable trademarks
globally hold immense intellectual capital, making trademarks a highly sought-after asset.

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3.4.2 Copyrights

Another important form of intellectual property is copyright, which protects the expression of an
idea rather than the idea itself. For example, in music, the foundational notes (sargam) are the idea,
but the unique combinations and arrangements of these notes constitute an expression that can be
copyrighted. Copyright is indicated by the © symbol, followed by the year of creation and the
name of the copyright owner. Ownership can belong to an individual or an institution, such as NIT
Calicut in certain cases. Copyright arises automatically and does not require formal registration.

3.4.3 Trade Secrets

Trade secrets encompass elements such as chemical formulas, manufacturing processes, machine
designs, and business models. However, maintaining confidentiality is crucial to preserving a trade
secret's status. Without proper safeguards, such as non-disclosure and non-compete agreements
with employees, there is a risk of the trade secret being leaked, either intentionally or accidentally.
Trade secrets provide a competitive edge but can be vulnerable to copying since they lack patent
protection.

3.4.4 Geographical Indicators

Beyond trademarks, another notable type of intellectual property is the geographical indicator (GI).
A geographical indicator associates a product with a specific location, emphasizing its origin and
the distinct qualities derived from that region. This concept ties closely to the marketing principle
of "Country of Origin" (COO), where the origin of a product guarantees its quality and uniqueness.
For instance, Darjeeling tea in India, Ceylon tea from Sri Lanka, and Banarasi sarees from India
are all products whose distinctiveness is tied to their geographical origin. The process of acquiring
a GI involves submitting applications and documents proving the product's uniqueness due to its
origin.

3.4.5 Patents

Patents, the most popular form of intellectual property, protect innovations like new products or
processes. Innovation is often measured by the number of patents filed. For instance, Bharat Heavy
Electricals Limited (BHEL), a leading PSU in India, averages one patent filing per day, reflecting
its commitment to innovation. Similarly, academic institutions such as IITs and NITs gauge their

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performance through the patents filed by their researchers and faculty, making patents a direct
indicator of innovation.

Not all ideas are patentable. To qualify, an invention must meet three key criteria: novelty, non-
obviousness, and usefulness. A novel invention introduces something entirely new. Non-
obviousness ensures that incremental or predictable changes to existing knowledge cannot be
patented. For example, if a product follows a clear pattern of input-output relationships, it cannot
be patented. Finally, the invention must have practical utility, providing tangible benefits to society.
If a claim satisfies all these factors, it is patentable, though securing the patent requires further
steps.

Startups and first-generation entrepreneurs must protect their ideas from the beginning to create a
shield that allows them to work on their innovations without unnecessary interference. Patents are
a crucial part of intellectual property rights, granting inventors the ability to prevent others from
making, using, selling, offering for sale, or importing their patented inventions. However, patents
are geographically limited; a patent obtained in one country, such as India, is valid only in that
country. Inventors can extend patent protection to other countries depending on their business
scope and competitive threats. To simplify this process, some regions, like Africa, offer group
patenting, where a single application covers multiple countries.

In summary, intellectual property includes various types such as patents, trade secrets, trademarks,
copyrights, and geographical indicators. Innovators frequently engage with these types of IP to
protect their creations.

3.5 Evolution of Patent Amendments in India

Since 2000, India has experienced rapid globalization, leading to a dynamic business environment.
The Indian Patent Act, originally enacted in 1972, underwent its first amendment in 1999, nearly
27 years later. Subsequent amendments occurred at shorter intervals, in 2002 and 2005, reflecting
the changing needs of the intellectual property landscape. This trend of frequent amendments
underscores the importance of staying updated on the latest developments. The Department for
Promotion of Industry and Internal Trade (DPIIT) serves as the central authority for intellectual
property matters, ensuring centralized management of patents, copyrights, and trademarks.

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3.6 Patent Filing and Granting Process

Obtaining a patent in India is a lengthy process, often taking 3-4 years. This makes proactive filing
essential, as not all claims may be accepted.

Steps in the Patent Filing Process:

1. Check Patentability: Ensure the invention is novel and has utility.

2. Conduct a Patent Search: Verify that no similar patents exist to confirm uniqueness.
3. Draft the Application: Include detailed descriptions, technical specifications, and claims
about the invention.
4. File the Application: Submit the completed application to the Indian Patent Office for
consideration.
5. Publication: The application is published in the Patent Journal after 18 months from the
filing date.
6. Examination: A request for examination must be filed within 48 months from the priority
date or filing date.
7. Respond to FER (First Examination Report): Address objections or issues raised in the
First Examination Report to proceed further.
8. Grant of Patent: Once approved, the patent is granted and is valid for a period of 20 years
from the filing date.

The examination outcomes of a patent application are determined based on its adherence to key
criteria. If the application meets the requirements of novelty, non-obviousness, and usefulness, the
patent is granted. However, if the claims fail to fulfill these criteria, the application is rejected.
Additionally, before a patent is granted, the application may face pre-grant opposition from
reviewers. If the opposition is valid, the patent is refused. Conversely, if the opposition is
unfounded or the applicant successfully resolves objections through amendments, the patent is
granted.

3.7 Role of the Controller of Patents

The controller evaluates the examination report and opposition claims. Based on findings, the
controller either grants or refuses the patent. If amendments are required, the controller ensures
that the revised application satisfies all criteria before granting the patent.

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Innovation faces challenges at both individual and systemic (organizational) levels. A key aspect
of overcoming these challenges involves understanding how schools of innovation and analogies,
like the elephant-rider concept, can help smoothen the process. Addressing these obstacles is
essential for fostering a competitive and effective innovation environment.

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 4 Entrepreneurship

4.1 Scope of Entrepreneurship

Entrepreneurs are vital catalysts for economic and social development, driving innovation, creating
jobs, and contributing significantly to economic value. Their impact has been evident throughout
history. For instance, without the contributions of Thomas Alva Edison, many modern
conveniences we consider indispensable might not exist or would have emerged much later.
Entrepreneurs address societal problems, observing people's needs and offering solutions to
alleviate their pain points. This not only fulfills a social responsibility but also creates opportunities
for personal wealth generation that far surpasses the limitations of a fixed salary. While
entrepreneurship comes with risks, careful planning and risk management can increase the
likelihood of success and potentially lead to the creation of unlimited wealth.

Corporate entrepreneurship is an extension of this concept, allowing individuals with creativity

and leadership skills to pursue their ideas within a corporate environment. Organizations provide
dedicated resources and time, enabling these individuals to create value for both themselves and
the company. This fosters an ecosystem of innovation and growth within the corporate structure.

Several motivations drive individuals toward entrepreneurship. The desire for autonomy and
freedom often encourages people to become their own boss, providing independence and the
opportunity to access resources to achieve significant accomplishments. Sometimes,
entrepreneurship is sparked by recognizing an opportunity or identifying a gap in the market.
Entrepreneurs may use their academic knowledge or experience to address specific problems and
provide innovative solutions.

In some cases, starting a business becomes a necessity rather than a choice, such as when
individuals lose their jobs and have no other viable option. Additionally, the current environment
in many countries, including government initiatives and ecosystem support, makes
entrepreneurship more accessible and appealing. Infrastructure, funding, mentoring, and market
access have been developed to encourage new businesses. Entrepreneurs can benefit from
programs like priority payment systems, support for partnerships with large companies, and other
incentives, creating a favorable climate for starting a business.

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With the right motivation, resources, and support, the time to embark on an entrepreneurial journey
is now. By leveraging these opportunities and addressing societal needs, individuals can make a
meaningful impact while achieving personal and professional success.

4.2 Characteristic of an entrepreneur

4.2.1 Curiosity
Curiosity is the drive to explore, learn, and ask questions. It fuels innovation and helps in
discovering new opportunities. A curious person continuously seeks knowledge and is not afraid
to question the status quo.

Example: A researcher exploring new AI techniques to improve automation in industries.

4.2.2 Willingness to Experiment

This trait involves trying out new ideas, processes, or approaches without fear of failure.
Experimentation leads to breakthroughs and new discoveries.

Example: A startup founder testing different business models to see which one attracts the most
customers.

4.2.3 Adaptability
Adaptability is the ability to adjust to new situations, challenges, or changes in the environment.
It is essential in today’s fast-paced world where circumstances can shift quickly.

Example: A software developer learning a new programming language when a project demands
it.

4.2.4 Decisiveness
Being decisive means making quick and confident decisions, even in uncertain situations. It
prevents delays and keeps progress moving forward.

Example: A manager choosing the best candidate for a role based on available data rather than
hesitating for weeks.

4.2.5 Self-Awareness
Self-awareness is understanding one's strengths, weaknesses, emotions, and motivations. It helps
in making better decisions and improving personal growth.

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Example: A leader recognizing they need to improve their communication skills and taking steps
to do so.

4.2.6 Risk Tolerance

Risk tolerance refers to the ability to take calculated risks without fear of failure. People with high
risk tolerance are more willing to pursue opportunities with potential rewards.

Example: An investor putting money into a promising but risky startup.

4.2.7 Comfort with Failure

Being comfortable with failure means understanding that setbacks are part of growth. Learning
from mistakes leads to improvement and long-term success.

Example: A scientist conducting multiple failed experiments before discovering a groundbreaking

solution.

4.2.8 Persistence
Persistence is the ability to keep going despite challenges, obstacles, or setbacks. It is crucial for
achieving long-term goals.

Example: A writer submitting a book to multiple publishers despite repeated rejections until it
finally gets accepted.

4.2.9 Innovative Thinking

Innovative thinking involves coming up with creative and unique solutions to problems. It is
essential for progress in any field.

Example: A designer creating a new user interface that simplifies complex tasks.

4.2.10 Long-Term Focus

This trait refers to prioritizing future goals over short-term gains. People with long-term focus
work towards sustainable success rather than quick wins.

Example: A company investing in research and development for long-term technological

advancements rather than just focusing on immediate profits.

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