Promoting Innovation in MSMEs through Public-Private Partnership

There is a growing realization that a strong and vibrant MSME sector characterized by high growth and continual innovation of products and processes can provide a strong foundation to economic and social development. However, it is hard for small firms to obtain funds for innovation because of the inherent risk of such projects, information asymmetry and market failures. It is increasingly been realised by governments, academicians and policy makers that public support to financing MSME research is critical. An increasing number of countries have introduced and robustly funded a broad array of agencies & programs to support the innovation capacity of their SME manufacturers. Following the global transition in the policy approach towards MSMEs, Government of India has also directed considerable efforts towards providing an impetus to technology innovation in this sector and has initiated several innovation programmes in Public Private Partnership (PPP) mode