Indian tech start-ups can significantly reduce time to market up to 70 per cent by embracing external collaboration and open innovation in early stages according to Nasscom-Avasant report.
The report titled “Open Innovation: The Catalyst for Transforming India’s Technology Ecosystem” noted collaborative programs involving start-ups, academia, and corporates present opportunities to boost revenue, expand customer base, enhance operational efficiency, and optimize costs, showcasing the dynamic potential of open innovation and collaborative initiatives.
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Technology start-ups can unlock significant growth opportunities by engaging in Open Innovation programs and collaborations. As per a survey done with over 130 start-ups, investors, and corporates, more than 80 per cent of corporations have experienced improvements in their revenue, efficiency, or cost optimization efforts, the report noted.
Fostering collaborations
Kritika Murugesan, Senior Director, nasscom start-ups, said, “India, presently is at the cusp of large-scale digital transformation, heralding a new era of breakthrough innovation. In order to be seen as the leader in Open innovation, we need to align innovation with local needs by fostering collaborations between corporates, startups, academia, and government.”
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Over 80 per cent of startups documented growth in revenue and valuation, within three years of their establishment by engaging in Open Innovation programs. Corporates benefit significantly from open innovation by harnessing a diverse array of external ideas and problem-solving capabilities, thereby expanding their innovative solutions. Those who embrace open innovation are 1.25 times more likely to introduce breakthrough products or services.
For Academia, collaborative partnerships with corporates and startups present an opportunity to apply research findings to real-world problems. Additionally, technology and research consortia offer academia the chance to collaborate with other institutions and industry players in joint research initiatives.
Survey findings
As per the survey findings, compared to other ecosystem stakeholders, academia provides more than a 30 per cent advantage in terms of resources for innovation, encompassing knowledge, networks, skills, and more. Moreover, start-ups that form partnerships with academia experience a 50 per cent faster scaling rate, while corporates engaging in collaborations with academia can expedite product development by 20 per cent, said the report.