INDIAN SMEs
“ IN 2006, THE TECHNOLOGY INFORMATION FORECASTING AND ASSESSMENT COUNCIL (TIFAC) UNDER THE DEPARTMENT OF SCIENCE AND TECHNOLOGY, INITIATED A PROGRAMME AIMED AT PROVIDING R&D AND TECHNICAL SUPPORT TO SELECT CLUSTERS OF MICRO, SMALL AND MEDIUM-SIZED ENTERPRISES (MSMES) THROUGH AN APPROACH BASED ON ESTABLISHING AND LEVERAGING ACADEMIC AND INDUSTRY INTERACTION.”
New brands and new designs spring up almost on a daily basis in the market. Small and medium-sized enterprises (SMEs) are a driving force behind these innovations. SMEs represent 90 percent of enterprises in most countries. Despite their importance to the economy and the potential off ered by the IP system for enhancing SMEs’ competitiveness, SMEs oſt en underutilise the IP system, and their creative and innovative capacity is not always fully exploited. T is is because many SMEs are not aware of the IP system or the protection it can provide for their inventions, brands and designs. To many SMEs, IP is still an unknown concept; they think that the game can be understood only by experts. SMEs are faced with several questions. Why should they pay attention to IP? How can they survive in the international trade arena? What role can the government play in making SMEs more competitive? How can intellectual property generate wealth in the business?
Relevance of the IP system to SMEs
T ere is a need for greater understanding on the part of SMEs. According to United Nations Industrial Organization (UNIDO) estimates, there are approximately 350 small and medium- sized industry clusters in India. Taking full
advantage of the IP system enables companies to profi t from their innovative capacity and creativity, which promotes and aids further innovation. Forward-looking enterprises must extract the potential value of their IP and use it eff ectively in their business strategy. SMEs with a strong technological base, international business outlook, competitive spirit and willingness to restructure can withstand the present challenges and come out with their own contribution to the Indian economy. IP protection helps:
• Prevent competitors from copying or imitating products and services
• Avoid unnecessary investment in research and development, and marketing
• Create a corporate identity through trademark and branding strategies
• Increase market value
• Acquire venture capital and enhance access to fi nance
• Exploit licensing, franchising or other IP-related contractual transactions
• Provide access to new markets.
Support initiatives for SMEs IPR protection and management are not just the concern of individuals and enterprises. T e complexities that come with managing the
64 World Intellectual Property Review November/December 2010
various IPRs necessitate specifi c expertise and support systems. Many support institutions have been established in India, whose basic function is fundamentally twofold: to create awareness and consciousness amongst stakeholders of the various issues surrounding IPR protection and management, and to facilitate the acquisition, protection and management of IPRs.
Government and public sector initiatives
T e Small Industries Development Organization (SIDO) is the Indian central SME development agency, which operates under the Ministry of Small Scale Industries. SIDO partners and networks with other national providers of support and fi nancial services to SMEs, such as the Small Industries Development Bank of India (SIDBI), the Reserve Bank of India (RBI), the National Small Industries Corporation (NSIC), the Bureau of Indian Standards (BIS) and other relevant government and regional agencies. SIDO has conducted IPR workshops for SMEs. Typically, each workshop comprises four technical sessions: the fi rst is completely non- technical and pitched to the layman with a clear intent to create an interest in IPRs; the other three sessions concern patents, trademarks, industrial designs and copyrights, but once
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