Government-Industry-Academia- A synergetic framework

Team Mission-Collaboration

11/28/2009

Team Mission-Collaboration

Great Lakes Institute of Management

Deepika Verma

Deepika.verma@greatlakes.edu.in

Ph: 09962593993

Gurava Reddy Maruri

Guravareddy.maruri@greatlakes.edu.in

Ph: 09962558750

Table of Contents

1. Executive Summary ......................................................................................................................... 3

2. Introduction ..................................................................................................................................... 4

3. Stake holders and challenges with the current framework .............................................................. 5

4. Necessity of the synergetic framework ........................................................................................... 6

5. Implementation and Roadmap ........................................................................................................ 7

6. Different Cases from Industry, Academia and Government: ........................................................ 18

7. Challenges ..................................................................................................................................... 20

8. Conclusion .................................................................................................................................... 20

9. Way ahead ..................................................................................................................................... 20

10. References ..................................................................................................................................... 21

1. Executive Summary

After reforms the growth of India is impeccable, however the growth is mainly because of

capital deployed which is around 82% and rest because of Labour (12%) and productivity (6%).

Considering India as a developing nation, capital infusion may be possible for next few years to

sustain the growth. However in long-term it’s not going to help to sustain the growth which is

more dependent on Foreign Direct Investments and Government infusion of capital. So, the

most important aspect is to increase the productivity by creating a structured integrated and

synergetic framework for collaboration between Industry, academia and government.

This paper provides who all are the key stakeholders in industry, academia and government

while collaborating with each other and what are the challenges each is facing in the existing

situation. It also provides the necessity of a synergetic framework and guides the importance of

it when compared to inter dependent framework that is existing currently. Then provides the

road map for deploying the synergetic framework by clearly specifying how industry can help

academia and government, Government can help industry and Academia, Academia can help

government and Industry and each acting as the interface for the development of other two.

This followed by the challenges with the synergetic framework and the roadmap for the future.

2. Introduction

Considering the expanding need of technological advancement in industrial environment,

necessity of world class education for competing with advancing and advanced countries

and to cope up with the challenges to become the global power, there exists a need to

create a synergetic and integrated framework which can address the problems of

academia, industry and government.

The framework that exists in India today is an inter-dependent framework and is mostly

dependent on need basis i.e. whenever there is a necessity comes from Industry,

Academic world or from the government, and then it will request the required body to

address the problem. And because there is no structured process or mechanism through

with it needs to be done, it will take ample time for the task to complete. By the time it

completes may be the necessity of the task may be over and hence

Collaboration between the government, schools and the workplace proceeds from the

current economic context of industrialized countries. The need to create these linkages

mainly results from growing concerns about the consequence of market globalization and

the fierce competition that regulate the commerce of goods and services. These effects

have led to recognize the increasing importance of a qualified and well-adjusted

workforce in the production process in force.

Collaborative education is one of the forms of educational activities the government,

schools and the workplace, to create these linkages they officially desire. On one hand it

need to meet the labour force demands of the workforce and the other hand it need to

encourage the youth in the pursuit of their training and to give relevance to the knowledge

they are strongly invited to learn. This empowerment can only happen when government

can step in and enforce required methods and best practices for the betterment of young

minds in right direction by glorifying the collaborative education.

3. Stake holders and challenges with the current framework

Stake holders •NGOs,CII,FICCI

•Organizations

•CSR team

Challenges •Poor conceptual framework for research

•Lack of skilled workforce

•Adaptation of technology

•Volatility in supply and demand of goods and services

•Stringent government regulations

•Low public spending

•Very high competitiveness

•Volatility in foreign markets

Industry

Stake holders •College and Universities

•Teachers, Students, Parents Group •Academic communities

Challenges • Identifying and addressing needs of the industry

•Lack of real time exposure for the students

•Lack of required infrastructure in all levels of education & Shortage of trained faculty

•Lower compensation to the academicians

•Relevance of education to the industry needs

• Insufficient availability of funds

•Lack of multi disciplinary approach

•Very few quality schools, colleges and universities

Academia

Stake holders •MHRD , NKC

•Regulatory bodies •Planning commission

Challenges •Technology upgradation

•Beaurocratic approach leading to slow progress

•Poor execution

•Corruption & lack of political will

•Lack of funding for infrastructure development

•Sustaining the high growth•Unemployment & Inflation

Government

4. Necessity of the synergetic framework

Interdependent framework is purely transactional and lacks mutual sharing across the

industry which includes re-inventing the wheel every time. Integrated framework is

structured where one function acts as a catalyst for the development of other two with

collaboration of all functions and execution of strategy has pivotal role.

Interdependent to Integrated & Synergetic framework

5. Implementation and Roadmap

The implementation follows a two-step approach. The first step involves refining the

existing methods to make it more structured and converting the interdependence into

integrated framework model. The second step involves defining and implementing new

methods to integrate and create synergy between Academia, Industry and Government.

a. Stage I : Refining the existing methods

1. Industry To Academia

a. Providing soft infrastructure: The industry should always innovate and

provide soft infrastructure to different schools as an experimental basis. If

they find certain practice successful then, they need to suggest to the

academic world or request the government to implement these practices.

There should be a body which ensures the streamlining of this process

formed by both academicians and industry professionals.

b. Exploring research opportunities for academicians: Industry should

always explore itself where it can involve academicians and leverage their

expertise in those specific fields so that they will not reinvent the wheel.

c. Raising awareness of the opportunities by Knowledge Transfer

Partnerships (KTPs)The potential of any institution depends on the

knowledge repository and knowledge management that it builds. And by

creating KTPs it is possible to come up with enormous value addition.

2. Industry To Government

a. Up-to-date technological advancement: Industry need to ensure the

technology in most adaptable form should be deployed in all government

offices and need to ensure less beaurocratic and smooth functioning of the

systems.

b. Ensuring proper corporate governance: A body like CII (Confederation

of Indian Industry) need to enforce strict norms for corporate governance,

failing which, it is not going to support those companies the way it is

doing now. Also a body (say, wing of CII) needs to work with

Government to ensure transparency in paying taxes without cooking

books.

3. Academia To Government

a. Ensuring multi disciplinary approach: This ensures the talent pool will

be ready to create their own employment based on the gaps rather than

looking of the jobs where there are saturated markets.

b. Ensuring the talent equipped with required values: The talent who run

the government come from academia only. So, it needs to ensure that the

practices are fully equipped which keep the young minds with the vision

more futuristic as well as realistic. The curriculum need to be designed

based on the requirements and need.

4. Academia To Industry

a. Creating talent based on the needs of the industry: This should be

religiously practiced considering the need of industry from academia who

can understand the real-time environment in the corporate. People from

industry need to discuss the case in the colleges in the form of workshop

and provide real time exposure to the students. This not only provides

visibility to the companies but also can tune the workforce for its

requirements. Students get real time exposure and able to appreciate the

academics. This strengthens the interaction between industry and

academia.

5. Government

Government to Industry:

a. Government measures for good industrial development:

i. Protective: Where the government protects the existing industries

from the turmoil, economic slowdowns and from the big industries.

ii. Promotional: Promoting the growth of the industries by adopting

best practices of the west and implementing best practices with in

the country and providing necessary tax incentives and friendly

policies.

iii. Institutional: building institutions which help the industry to grow

faster and ensuring the regulations so that the growth will be more

inclusive.

b. Providing strategic direction: By ensuring right technologies and right

policies at right time, need to give direction for the industries. This should

be done keeping the vision of the industries and country as a whole. (3G

entry which has become very late and still procrastinating the

implementation)

c. Reviving the dying industries by creating demand: The introduction of

the new product patent regime in Pharma Industry has adversely affected

the Indian Pharma firms. Government should come up with new policies to

help them cope up with the challenges of the product patent regime.

6. Govt To Academia

a. Infrastructure: There is a huge gap in what is required and what is

existing in the academic world in all levels. High level education need to

provide with good R&D laboratories and good remuneration to the

scientists and professors. Also there is a need for policy of bringing Indian

scientists and professors back to our country with required and feasible

assistance. Streamline the processes of fund distribution and ensuring

transparency through online systems while providing infrastructure and

making it available to public will reduce the corruption and ensure good

return on Investment.

b. Providing a synergy between private-public academic institutions:

There is a gap between the approaches of public and private institutions.

Public institutions exposed to stringent regulations and old methods than

private institutions which can be built by an independent body of both the

institutions. This can be implanted at all levels, starting from business

schools to primary schools where each can share the best practices for the

betterment of both.

c. Identify and Implement the best practices: Govt should identify the best

practices in academia by providing necessary infrastructure and autonomy

to experiment and enforce those best practices throughout the state.

Independent govt body should ensure the best practices in academia by

industry should reach out whole state.

b. Stage II: Defining and implementing new methods

1. Industry To Academia

a. Providing internships as a mandatory practice: Industry need to ensure

the practice of finding out the ways where the academic world will get an

exposure of its functioning. So, helping students and faculty by providing

short term internships, they can create an enthusiasm and real time

exposure which ensures confidence and binding with the industry.

b. Looking Academia as a client: Industry should work closely with

academia to understand the problems and provide solutions. Though this is

happening in a need basis, it should happen by every company by looking

education as a separate business entity and how they can add value.

2. Industry To Government

a. Sharing best practices: Whatever the best practices that industry is

implementing wrt to the social need, industry should share with the

government and ensure that it will be scaled up in national level.

b. Helping public sector through Centres of Excellence: For India, public

sector is one of the key revenue areas. So through the implementation of

Centres of Excellence in the areas where public sector also is in will help

them compete globally with better revenues for the government.

3. Academia To Govt

a. Providing a framework for future of Nation: Academic world need to

make sure that the processes are evolved with time and ensure that the

systems that government is using are at par with the advanced world.

b. Creating Entrepreneurs: Entrepreneurship should be made as part of

curriculum to make the students understand the needs of the society and

industry and generation of ideas and identifying opportunities, and finding

investment opportunities. This provides a thought in the young minds and

gives life to creativity and innovation at an early age.

4. Academia To Industry

a. A body acting as an Interface for real time industry problems: What

are the problems that industry is facing considering the academia on real

time basis. Academia need to set up an institution which represents a set of

similar colleges (IITs, NITs, Universities etc) with distinguished

professors from academia and Independent members from the industry.

And this institution acts as the bridge to fill the communication gap

between industry and academia. One person who can act as the Point of

contact from industry with this institution for all kinds of to and fro

communication. (The governance should be clearly defined and there will

be a contract between the institution and the industry related to the kind of

research work the company given to the academia considering the security

and confidentiality).

b. Conceptualizing the real time business problems: Academicians have a

very strong ability to abstract from the problem and conceptualize and then

solve it in the conceptual domain. This is an expertise that is woefully

lacking in the industry, which is faced with down-to-earth problems day-in

and day-out, often not letting the conceptualization skill to develop.

Often academics are involved in academic or pure research which may not

have applied aspect to it. With time the academicians tend to become too

conceptual and too far removed from the real problems that the industry

might be facing.

5. Government

a. Implementation of e-Governance: This is one of the key aspects that Indian

government needs to come up with. This not only ensures transparency and

accountability but also reduces the turnaround time for the beaurocracy

multifold. This also reduces the corruption by making the process and systems

online and creating strict SLAs (Service Level Agreements) within which the

approval/disapproval with proper justification need to be done without which

it will be escalated to the higher authority.

Since e-government pilots have demonstrated a positive impact on corruption,

transparency and quality of service, these countries see e-government as an

effective tool for governance reform.

How to build strong e-governance:

i. Significant Process Reengineering: Need to study the existing

systems and processes in place (As-Is state) and give a road map to the

destination (To-Be state).

ii. Strong Project Management skills: This is one of the huge

turnaround projects which give great difficulties in terms of many

aspects like legal, political, regional etc. So need very experienced and

professional project managers to handle it.

iii. Training: All the stakeholders must be trained and need to be

informed prior about the situation and the necessity of the re-

engineering, and need to send up-to-date information about the

changes to prepare for the future.

iv. Partnership with private sector: By partnering with the private

sector, the execution will be easier where technological competencies

provision will become much smoother.

v. Change management: This is one of the key areas where the

government employees should be updated about the required changes

and its necessities to accommodate and appreciate, without which the

systems will not get acceptance for running efficiently.

6. Government to Industry:

a. Assisting industry to acquire necessary skills to cope up with the

international competition: Government need to invest in the industrial

bodies to ensure the competencies are built for technologies which are not

there in India. This can be done through collaboration with foreign countries

and requesting foreign companies to step in to India.

b. Enable collaboration strategy between industries: Government need to

enable a mechanism which ensures the reduction in the competitive strategy

which will not affect the people. (Such as technological breakthroughs,

building research centers) mainly to compete with the foreign giants (In case

of Pharma, Biotech industries)

c. Channelizing the sources of output growth: in the current scenario, growth

in output has come from capital (82%), Labour (12%), and productivity (6%).

The low contribution of productivity is due to the declining of capacity

utilization. Government needs to ensure that the growth should be driven more

by productivity under proper capital-labour ratio as growth on capital is not

sustainable.

d. Tackling urban issues and reforms: Considering the problem in integrating

various urban development and related programs at all levels, there is a need

for constitutional amendments and administrative actions. Most importantly

inter-government transfers should have built in incentives to improve

performance and capacity building.

e. Sustaining businesses through innovation: There is a need for National

innovation policy that encourages competition among enterprises, greater

diffusion of knowledge and increased support to early stage technology

development initiatives and grass root level innovators. There is a need for

appropriate legislative framework for incentivizing the innovators and

commercialization of public fund and R&D.

7. Govt To Academia

a. Remuneration of the academicians: This is one of the biggest problems

for Indian education system. All those who can use their knowledge are

getting into industries just because of the salaries in spite of their interest

in education sector as scientists or professors. So, this need to be changed

and need to ensure a clear policy of appreciating and providing

government consulting projects to these scientists so that there will be a

value addition from both the sides.

b. Enabling e-Learning: This bridges the gap between rural and urban

education institutions which is a big concern now. By providing e-

learning, students will be able attend lessons from great faculty across the

world. This also ensures the implementation of the best practices much

easier. By showing videos and electronic material, can educate students

with virtual reality.

c. Promoting educational entrepreneurship in a structured way :

Considering the growth of India more of entrepreneurial than anything

else, it’s very important to come up with a structured mechanism to ensure

educational entrepreneurship in a big way followed by good incentives and

tax reduction and provision of funding and assistance in providing

necessary academic excellence.

c. Necessity of Each acting as an interface of others :

1. Industry as interface between Academia and govt

a) Providing technological platform: Industry need to help to build the gap in

the level of transparency, e-learning capabilities, stream line processes for

ensuring competence and excellence. Using their expertise need to provide

consulting in social perspective with considerable charge. It also ensures that

all the people get trained accordingly to use the systems to ensure the

performance and Return on Investment.

b) Innovations for the needs of the academia and government: There is a

huge need for building a material for the needs of academia and government

(WIPRO created education CDs and distributed across the nation). This is

possible by leveraging the competencies of the technology firms into these

activities.

c) Employment opportunities: By providing employment opportunities for

academicians and students, it helps a synergy between academia and

government. For that It need to come up with required skill training

institutions, specialized technology laboratories with the help of academia

resources and government funding.

2. Academia as interface between govt and industry

a) Assisting with conceptual frameworks: Great academicians can come up

with frameworks which can help the industry and government relations and

provisions. One such report is Yashpal Committee Report. Also economists

can help with the kind of reforms needed for industries to move with the pace

it is moving.

3. Govt as interface between industry and academia

a) Regulations and policies: To ensure there is a smooth transition of research

outsourcing between industry and academia. It can also help with enough

infrastructures till the processes are stabilized. Government can help with a

clear line, where it should stop so that industry will not exploit the academic

world.

b) Incentives: By providing incentives to the industrial houses which are taking

keen part in academic world, they can encourage the synergy between industry

and academia. The support from government helps industrial houses to

increase their credibility for investors and clients.

c) Infrastructure: This is one of the key areas where government needs to help

in building the gap between industrial houses and academic world. It is not

possible for any collaboration to sustain without solid foundation. And

government needs to help with that kind of foundation which will reap the

benefits for all.

6. Different Cases from Industry, Academia and Government:

Case I: Industrial leadership collaboration of Murugappa group with IIM

Bangalore

Case Ref: First Hand Information (Discussion with Mr.Parrikar (Ex. Chief

Minister of Goa) and Mr. Muthiah (Corporate HR for CUMI – Murugappa Group)

Murugappa Group, which nurtures leaders within the company, would like to imbibe

people skills in middle level managers through professional training for future

leadership roles.

Murugappa Group, which is a family run business of $ 3.14 Billion with around

35000 employees, nurtures its leaders with the help of collaboration with a

management institution. It selects around 30 Asst.General Managers and Managers

from the group of 250 middle level managers based on certain criteria. IIM-B runs

special program for these General Managers and nurtures them with people skills.

Case II: Provision of infrastructure to some of the schools on ongoing basis for 15

years by Mr.Manohar Parrikar as Chief Minister of Goa:

Case Ref: First Hand Information (Discussion Mr. Muthiah (Corporate HR for

CUMI – Murugappa Group)

Goa Chief Minister handed over 50 schools to clubs and women’s mandals where the

students are less than 12-15 with sufficient infrastructure to develop them as fully

equipped schools with all facilities. Also provided the students with scholarships and

loans for all the needy people based on the economic background. Seven students will

be selected out of Goa and were helped throughout the education without any

expectation. That is the kind of initiatives needed from the government to help the

education sector to flourish.

Case III: Tata Education and Development Trust: With a single motive of promoting

the acquisition of knowledge by Indian youth in leading global academic institutions

and aiding research in agriculture and nutrition. Tata companies and Tata trusts

spent $170 million in 2007-08 – 3 per cent of the aggregated net profits of Tata

companies – on a variety of causes, including science, medicine, social services, rural

welfare, performing arts, education and the needs of children. Tata philanthropy has

established pioneering national institutions in India in the fields of social science,

cancer research and treatment, and tropical disease research.

Case IV: Research support from Academic Institutions to DRDO: DRDO supports a

substantial amount of extramural research in academic institutions and other

laboratories on defence related problems through various grants-in-aid schemes and

other sponsored projects. The ER (Extramural Research) scheme also supports the

instrumentality of Memoranda of Collaboration (MoC) between DRDO Laboratories

& Establishments and academia. These MoC invariably involve more than on DRDO

establishment and cover explorations and investigations on a range of topics within a

broad subject arena that generically cross-link the research activities of the

collaborating Laboratories & Establishments and the research-disciplines of the

selected collaborating academic institution. Such institutional cross-linking is

organic, not episodic, and is made operational in a MoC through a management

structure which includes in its standing arrangements representation of directors of

the collaborating DRDO institutions. Approved Research Institutions, Universities or

Colleges, Departments or Laboratories or Scientists of eminence attached to reputed

industrial firms with R&D facilities both in the Government and Non-Government

sector.

7. Challenges

a) Lack of Pro-activeness among academia and government may lead to loss of funds.

b) Huge resistance towards e-governance and transparent methods from government

executives.

c) Control over the regulatory bodies by politicians and industry stalwarts

d) Corruption and political influence may deter the processes.

e) Unnecessary regulations through government policies may affect the efficiency of the

systems.

8. Conclusion

Components of the policy must include encouraging the support from all the parties for

achieving a competitive environment for private enterprises, academia acknowledging the

importance of improving our capacity in innovation and technology and overseas markets

and acknowledging the appropriate role for governments in reducing structural

impediments and catalysing necessary skills enhancement. Only by taking such a

balanced long term approach will the Indian community be able to achieve the generation

of savings and investment, the degree of integration into the international market place

and the creation of self sustaining and satisfying jobs to which we aspire.

9. Way ahead

a) Providing a common database for information and knowledge across the academia.

b) Connecting all schools and colleges with a single internet connection and

implementing a standard set of world class best practices through online courses.

c) Providing a community among the three to discuss issues online in real time and

seamless integration of all the processes without any beaurocratic approach.

d) Implementation of technology in all public distribution systems wherever there is

involvement of public and the process is through beaurocratic to ensure transparency.

e) Using social media as a channel to integrate virtually and tracking the issues to ensure

the compliance of all the systems.

10. References

1. Role of Government: As an Enabler, Regulator, and Provider of ICT Based Services

2. Subhashish Bhatnagar, Professor Indian Institute of Management, Ahmedabad

3. A Study of the Role of Government of India in Helping Indian Pharma Industry Cope

up with the Challenges of Product Patent Regime : European Journal of Economics,

Finance and Administrative Sciences - ISSN 1450-2275 Issue 13 (2008)

4. Factor Employment, Sources and Sustainability of Output Growth: Analysis of Indian

Manufacturing by Arvind Virmani and Danish A. Hashim (Apr 09)

5. Ministry of Finance, Government of India: Working Paper No.3 /2009-DEA

6. Urban Issues, Reforms and way forward in India By Chetan Vaidya (India’s future

strategy)

7. http://business.gov.in/innovation/suggestions.php

8. http://india.gov.in & http://business.gov.in/enterprises/govt_measures.php

9. http://www.eis.ernet.in/index.htm

10. CII: Confederation of Indian Industry

11. Incoherence in the collaboration between government, schools and the workplace :

cooperative education in quebec Theme : Creating Linkages : Government, Business,

Education and training

12. Future Training Needs in Pharmaceutical Sciences; establishing a Dialogue between

Academia and Industry

13. Economic Survey 2008-09

14. The Role of Private Industry & Government in critical infrastructure Assurance

15. Australian Chamber of Commerce and Industry : Role of Government Industry

Programs

16. A Study of the Role of Government of India in Helping Indian Pharma Industry Cope

up with the Challenges of Product Patent Regime : Neeraj Dixit (IES Management

College, Bandra(W), Mumbai, India )

17. Corporate Governance: Recommendations for voluntary adoption by Mr.Naresh

Chandra.

18. CII (Confederation of Indian Industry) : Partnership case studies between business

and voluntary organizations

19. http://www.tata.com/ourcommitment/articles/inside.aspx?artid=sVK4EK2YxQw=

20. http://www.nstmis-dst.org/Directory/DRDO.htm