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Knowledge-generating centres -- Catalysts in exciting transition

M. Somasekhar

IN INDIA, knowledge-generation is a predominantly Government-sponsored activity. And the scientists in national laboratories, research organisations or universities are the main players in this enterprise. Over the years, industries that had ambitions of becoming global players and taking on market competition also started investing in in-house research and development (R&D).

The emergence of computers and computer-based/information technology-related areas such as software; biotechnology; the availability of a wide range of research tools and, more important, the availability of private funds, has opened up opportunities for entrepreneurship among researchers in the creation of both knowledge and wealth for themselves.

Techno-entrepreneurs need no longer depend on the laboratory, university or their research organisations. There are options to venture out, utilise a research facility on lease, demonstrate an idea and either set up a production facility or transfer the knowledge/technology to industry.

Facilitating this exciting transition are incubators, knowledge parks and venture funds. In the US, universities such as Stanford, California, MIT, Cornell and Carnegie Mellon have played the key role in successfully demonstrating this model of creating new knowledge and wealth. Similarly, Israel, Germany, France and the UK have evolved their own versions.

Technology incubation, as a concept, was pioneered in a way by the Department of Scientific and Industrial Research (DSIR) in the late 1980s with its venture at the Central Electronics Engineering Research Institute (CEERI), Pilani. With the active suppo rt of the Birla Institute of Technological Sciences (BITS), Pilani, the DSIR supported technopreneurship in the field of electronics.

The effort was fruitful but did not trigger a chain impact. The mismatch of labs undertaking their own research problems and industry depending on the import of technology or products, instead of doing its own R&D, proved to be a dampener on such individ ual enterprise.

In the last couple of years, success stories in the IT sector, and the new knowledge-based industries once again highlighted the potential for incubation. Several State governments created knowledge corridors, called parks or incubators.

An interesting model under trial in Andhra Pradesh is the ICICI Knowledge Park, co-promoted by the Financial Institute (FI) and the State Government. While the AP Government gave 200 acres of land in Turkapally village, about 40 km from Hyderabad, the IC ICI pumped in Rs 32 crore for Phase I of the project.

The prime objective of the Park is to encourage innovative research initiatives in such knowledge-intensive areas as biotechnology, pharmaceuticals, new materials, IT and agrochemicals. To this end, common facilities, including infrastructure, knowledge networks, a hassle-free work environment and access to funds, are provided.

A set of 10 modular labs, each roughly 3,200 sq. ft. in area, and access to the standard facilities required in a laboratory have been provided. Two `tenants' -- Pulsar Electro-Optics and Medicorp -- have begun their research efforts in these labs, expla ined Dr V. V. Subba Rao, acting CEO of the ICICI Knowledge Park.

The common facilities available for the tenant include uninterrupted power supply, a fibre optic network for high-speed data transfer, an effluent treatment plant, secretarial services and engineering services for installation and maintenance of equipmen t. The new initiatives added are a `Knowledge Network' and a `Virtual Information Network', said Dr Subba Rao.

In the Knowledge Network, initially 15 R&D institutions -- including CCMB, IICT, NIN, IISc, the IITs at Delhi, Kanpur, Kharagpur, Chennai and Mumbai, NCL, and others -- will be brought together, and a search engine would provide access to their resources .

The techno-entrepreneur tenant benefits through online access to libraries and databases, issues concerning intellectual property rights (IPR), patents, venture capital, and expert suggestions for negotiations and project execution.

The second major facility for the tenants is the Virtual Information Centre (VIC), designed to act as an electronic platform for fast and reliable access to information and interaction among industry, academia and public-funded research institutions in S &T.

The Rs 2-crore project is being funded up to Rs 1.5 crore by the DSIR, with the balance being shared by the ICICI Knowledge Park. It is aimed to facilitate collaborative research and knowledge-sharing with world-renowned academic and research organisatio ns in the country. Started recently, the facility will become fully operational in three years.

The National Information System for Science and Technology (NISSAT), under the DSIR, is designing the systems, products and services using the latest information-handling tools and techniques. It will be a national facility, the first of its kind.

As a logical extension to providing infrastructural and knowledge-based services to the tenants, the ICICI Venture Funds Management Company Ltd. is setting up an incubator facility at the Park. Other technology finance companies exploring opportunities i n India have expressed their interest to network with the Park. This will be an additional facility, and simplify the process of sourcing funds, making it easier for the tenant to transfer the fruits of R&D to a commercial scale.

Though the setting up of the ICICI Park with the facilities was done in record time and was ready for occupancy from early 2000, the research activity attracted by it is a bit disappointing. Despite the IT industry booming, and the next wave of biotech g etting ready in 2000, the Park could not get technology developers to utilise the facilities. With the slowdown in the US, dotcoms going bust, and VCs getting more cautious to fund new ideas, will the going get even tougher?

The interest in utilising the Park is high. According to Dr Subba Rao, more than a dozen companies, including multinationals such as Monsanto, the Toyota group and the US-based Libraria have evinced keen interest and have held discussions. Among Indian c ompanies, Cyanamid Agro, Nagarjuna, Florence Infotech, Medgene Biotech and Glochem Industries have all been in talks with the promoters.

Dr Subba Rao is optimistic that these negotiations will lead to concrete projects, and that the Phase-1 with 10 modular labs will get optimum occupancy by the year end. The Park has recently lowered rentals to Rs 20, 25 and 30 per sq ft per month for the tenant in the first, second and third years of occupancy. For the R&D, S&T and knowledge-networking services, an additional Rs 10 per sq ft is charged per month.

Pic.: The ICICI Knowledge Park, co-promoted by the Financial Institute (FI) and the Andhra Pradesh Government, at Turkapally village, about 40 km from Hyderabad.

Picture by A. Roy Chowdhury