Today, Micro Small and Medium Enterprises (MSMEs) and start-ups are viewed as major engines of job creation and inclusive growth, both in developing and developed countries alike. In 2010-11, MSMEs represented 45% of manufactured output and 40% of exports1. India is also estimated to have 5,000 regional MSME clusters2 comprising of industrial, handicraft and handloom clusters such as Gems cluster in Surat, Brassware cluster in Moradabad and Textiles cluster in Tirupur. Innovation can play a pivotal role in driving growth in MSME clusters by creating new products, services and business models.
However, innovation in MSME clusters in India suffers from lack of access to technology, R&D, financing, skills, mentors and effective collaborative ecosystems, which in turn impacts their growth and productivity. In this context, the National Innnovation Council(NInC) aims to create models for transforming regional MSME clusters into innovation ecosystems with collaborative partnerships among stakeholders.