Hitesh Chittara Dhruv Lal

Grass Root Level

Finance• Low per capita income• Lack of financing models• Uncertain returns

• Government subsidy• Donors & funding agencies• Help market set up which provides

good returns on long term

Awareness and Adaptability

• Lack of awareness at grass root level• Adaptability is slow• People are reluctant towards change

• Govt. organizes awareness campaigns

• Govt. associates with local communities to increase awareness

• Free distribution of the innovation to let people know its benefit

Gap Identification and Government’s role

Infrastructure • Absence of infrastructure to support development of the innovation

• Government facilitates transfer of technology by training programs

• Rewarding the innovators

Gaps Government’s role

Government’s dilemma

Government can help the innovator set up a market

DA Donor / Funding Agencies

G Government

LC Local Communities

I Innovators

DI Distributors

R/W Retailer / Wholesalers

Market characteristics

Government Intervention High Medium Medium

Consumer Income Level Low Medium Medium

Innovation awareness Low Medium High

Maturity of market Low Medium High

Level of commercialization Low Medium High

Focus on rural markets High Medium Medium

Cost of production High Medium Low

Scale of Production Low Medium High

1 2 3

DA

G

LC

D

I

R/W

DA

G

LC

D

I

R/W

G LC D

I

R/W1 2 3

Development Growth

4

Providing assistance to the innovator on inputs (finance/ raw material, etc.)Helps low income innovators to innovate cheaplyIncreases adoption by lowering costXPuts huge financial burden on the funding agency / government

SubsidySubsidy

ModeMode

ValueValue

ExtentExtent

DirectDirect

IndirectIndirect

HighHigh

LowLow

Full timeFull time

Phase out

Phase out

Promoting the innovation, setting up distribution channels, awareness campsHelps create sustainable impact by developing skills and creating employment opportunitiesCreates awareness of the innovation among consumers

Helps bring down the cost of innovationCan generate huge demand in a short period of timeX Huge capital / funding requirementX Innovators get used to the high subsidy

Low capital requirementX May be insufficient in motivating innovators

Constant financial support to the innovator resulting in faster adoptionX Virtually impossible to support with subsidies for a long time

Innovator learns to value the subsidy and keeps on improvingFinancial burden on the govt. eases out gradually

Government can provide financial support to the innovator

Case-1: Clean and Efficient CookstovesTraditional 3-stone fire Clean and Efficient cookstoves

• Women and children exposed to indoor air pollution

• Lots of energy gets wasted• Fuel requirement is high, puts

pressure on the poor• A lot of time is wasted in

collecting fuel• Increases pressure on forests

• Significantly reduces indoor air pollution

• Increases the efficiency by ~ 40%• Increases employment opportunities• Saves time which is better spent in

education and other productive work• Increases spendable income• Enhances status of the user

• Govt. provides easy loan schemes to innovators to set up commercial market for themselves

• It assists with increasing awareness in nearby regions• It provides technical guidance on improvements• It rewards the innovator which increases his/ her motivation and

reputation• It brings together the value chain to minimize cost of production

• Problems with traditional chemical based mosquito repellents– Most of them need electricity

so cannot be used everywhere– They use harmful chemicals

that can have adverse effects on small children

– Recurring cost very high

Case-2: Solar Mosquito Killer

Product: The device makes the use of the smell from the septic tank to attract the mosquitoes. Once trapped, the heat built up inside the device as a result of direct sunlight exposure, kills them

Applications: It is a portable outdoor device; very useful for hospitals, gardens, schools, hotels, etc.

Inventor Profile: Mathews K Mathew (45) hails from a very small village in Kerala and has little formal edu.

Current Status: The product can be ordered online and is priced at Rs 1500

Patent: The device has been granted a patent