Question

You have been asked by the government of your home country to advise on public policy for innovation and entrepreneurship. Discuss your response, in the context of your country’s particular economic and innovation aspects.

Answer 1

My country is India. India is a low-to-middle income emerging nation. Innovation and entrepreneurship is a very vital factor in the growth of the country. The government needs to create an environment in which innovation and entrepreneurship can flourish. Firstly, there should be adequate credit available to people who want to start a business. Without sufficient credit, very fewer people would have the necessary means to begin a start-up. Secondly, there should be training and advisory systems for the entrepreneurs to imbibe business skills. Thirdly, the government should spend on infrastructure to enable business activities. Fourthly, there should be tax incentives such as tax holidays or rebates for startups to promote entrepreneurship and for businesses to invest in Research & Development. Fifthly, the government needs to strengthen the mechanism to protect intellectual properties of businesses. Sixthly, the administrative processes and formalities for starting new businesses should be simple and less time-consuming. Also, the government needs to eradicate the hindrances to get necessary permissions for business.