The Hindu Business Line : Give shape to innovative ideas, industry told

Chennai, Feb. 12 By 2020, India’s GDP would be $2 trillion (about Rs 80 lakh crore), two-thirds of it driven by innovation, if the country embraces innovation from now, according to futurist Mr James Canton, Chief Operating Officer and Chairman of Institute for Global Services. Currently, about one-third of the US GDP comes from innovation.

Speaking at a session organised by the Confederation of Indian Industry — Southern Region, Mr Canton said India needed to focus beyond its services industry on to innovation.

“India’s services-based economy needs to grow up the value chain. But you must create the new value chain. Don’t wait for the US or any country to develop it and then adopt that,” he said.

Innovative ideas are often buried because of lack of encouragement from top management of companies. “There is a trillion-billion dollar industry waiting to be innovated,” he said pointing to new areas such as nano-bio electronics, quantum biology, neuro-technology and health enhancement.

He cited the example of how Abu Dhabi, consisting of 11 small islands, was investing heavily into developing ‘floating’ cities due to land constraints. “Maybe India can come up with innovative ways to develop its 500 new airports,” he added.

Addressing the audience, consisting mainly of businessmen, Mr Canton asked if they were ‘future ready’. “About 80 per cent of products and services existing today will not do so in 5-8 years. In four years, about 90 per cent of all transactions will happen online. Are you equipped to deal with this?”

He urged companies to focus on the customers of tomorrow and innovate accordingly. “Visit other industry/trade meets and pick up new ideas to implement in your company. Cross industry knowledge helps.”

When asked about the manufacturing industry in 2020, Mr Canton said the sector had a “bright” future and would be more “commodity driven”. “To excel, the industry must look at creating a new value chain because there will be more competition and goods will be freely available,” he said.

On the global financial services industry, he said by 2015 these institutions would “influence us more than we want them to”, especially in matters of policy and development.

Responding to a question on how the Indian education system could be innovated, Mr Canton said India needed more trade centric degree programmes, not just computer science and IT courses. “You need also a $5-billion (Rs 20,000 crore) education fund to create labs and entrepreneurs”.

How will innovation impact the common man? “They will have access to cleaner (non-polluting) energy sources and the technology they use will be environment friendly,” he said.

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