Hitesh ChittaraDhruv Lal

1
Grass Root Level

• Hitesh Chittara Dhruv Lal

2
Gap Identification and Governments role
Gaps
Governments role

• 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

Finance

• 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

Awareness and Adaptability
Infrastructure

• Absence of infrastructure to support development
  of the innovation

• Government facilitates transfer of technology by
  training programs
• Rewarding the innovators

Governments dilemma
3
Government can help the innovator set up a market
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
DA Donor / Funding Agencies
G Government
LC Local Communities
I Innovators
DI Distributors
R/W Retailer / Wholesalers
1
2
3
4
Government can provide financial support to the
innovator

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

Direct
Mode

• Promoting the innovation, setting up distribution
  channels, awareness camps
• Helps create sustainable impact by developing
  skills and creating employment opportunities
• Creates awareness of the innovation among
  consumers

Indirect

• Helps bring down the cost of innovation
• Can generate huge demand in a short period of
  time
• Huge capital / funding requirement
• Innovators get used to the high subsidy

High
Subsidy
Value

• Low capital requirement
• May be insufficient in motivating innovators

Low

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

Full time
Extent

• Innovator learns to value the subsidy and keeps
  on improving
• Financial burden on the govt. eases out gradually

Phase out
5
Case-1 Clean and Efficient Cookstoves
Traditional 3-stone fire
Clean and Efficient cookstoves

• 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

• 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

• 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

6
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

• 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