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STARTUP ECOSYSTEM 217

intellectual property (IP). IP is the For a country like India, it may
controlling agent of any product or not be possible to keep with the in-
service which reaps long term ben- novations if it is left only to the large
efits for a company which owns it, and established players. They have
hence nation. IP development is their own business phases and
more critical in a digital world as challenges to conquer for which
this is the only differentiating and they would prioritise investments
controlling agent in the value chain and resources. This would result in
that a company can have and it low level of activities with respect
gives the legitimate ownership to to innovation and R&D at a national
the company while others contrib- level. Thus, it is paramount that In-
ute in its value creation. dia has startups that become the
l In multinational trade and important cog-wheels in keeping
manufacturing, IP ownership has the economic cycle running and
proven to bring the real value to contributing towards making India
any organisation, indirectly econ- a digital power.
omy. For instance, the US and Is- The government of India recog-
rael economies may not have the nising the strategic significance of
manufacturing wherewithal of Ja- startups in India identified it as one
pan, China and Korea; yet for the of the important elements of digital
companies originating from these as well as the overall economy.
countries are pecking on the glo-
bal trade markets and exchanges PRESENT STATUS
bringing maximum value for the in- Startup India was launched on 16th
vestors and other stakeholders in- of January 2016, by Finance min-
ister Arun Jaitley. However, the
cluding the governments.
GROWTH ENGINE OF DIGITAL INDIA There is always a need to constantly significance of the initiative can be
l Disruption and Innovation -
understood from the fact that it was
keep innovating to stay relevant.
announced as part of the Independ-
History has proven the fact that
parts of Red Fort by Prime Minister
the companies that are constantly ence Day speech from the ram-
innovating and disrupting, chal- Narendra Modi in August 2015.
seen of a startup on an economy. lenging the routine mindset, have For startups to foster and get all
Startups are generally disruptors seen consistent growth. Innova- the requisite support, the govern-
as the entrepreneurs take risks in tion has also had a positive impact ment has put the best foot forward
unknown waters and thus explore on the outlook and rational think- to provide all powerful launch-
new areas of growth and develop- ing of the citizens of progressive pad for startups. Over the past few
ment creating new opportunities nations. At the same time, needs years, the focus has been on ena-
for economic pursuits by trans- Startups are and demands of people keep con- bling a world-class infrastructure
forming knowledge into activities. beyond doubt, stantly changing. These may not be that empowers startups and entre-
l A startup from day one of its important always addressed by existing or- preneurs with all-important suc-
in not just
inception contributes to the mac- the present ganisations and enterprises. For cess elements.
roeconomy of the nation. It results development instance, the e-Commerce space The critical elements of the star-
in job creation, demand genera- but also play has not only been propounded but tup eco-system set-up in the past
tion, infrastructure consumption, a critical role also established around the world few years include:-
flow of investments and several in propelling by startups. a) Funding ecosystem to provide
other activities that get triggered by future growth Startups are beyond doubt, im- resources for R&D, seed capital
the birth of a startup. This sets the portant in not just the present de- and other levels of evolution
engine of an economy rolling and velopment but also play a critical b) Creation of incubators and
leads to the growth of a nation, not role in propelling future growth. other research labs to provision all
just in the immediate time horizon, The digital sector is intrinsically de- important equipment and tools at
but also seeds into medium to long manding on investments into R&D. the disposal of incubatees for idea-
range growth. 6 out of top 10 global R&D spend- tion and development of proof of
l IP, Product and Services de- ing companies for 2017, were from concept
velopment - In a knowledge-driven the digital sector, which collectively c) Formulation of rules and regu-
economy, the value comes from spent over US $77 billion in R&D. lations to provide tax and other fis-