- The MSME Ministry introduced the MSME Innovative Scheme by MSME Ministry
- It combines current sub-schemes for MSMEs in the areas of incubation, design, and intellectual property rights
- The MSME Innovative Scheme was introduced on March 10, 2012, by Narayan Rane
The MSME Innovative Scheme was introduced on March 10, 2012, by Narayan Rane, Minister of Micro, Small, and Medium Enterprises (MSMEs). In addition, the government proposed equity support of approximately rs 1 crore for the commercialization of ideas, designs, and patents across all three sub-schemes, as well as to assist MSMEs in scaling up to attract further investment.
The MSME Ministry introduced the MSME Innovative Scheme, which combines current sub-schemes for MSMEs in the areas of incubation, design, and intellectual property rights. According to the ministry, the new plan would serve as a centre for innovation activities, facilitating and leading the development of ideas into viable business concepts that can directly benefit society and be effectively commercialized.
Concerning the plan
The MSME Innovative Scheme intends to assist MSMEs in turning their business ideas into sustainable business plans. As a result, the scheme serves as a focal point for innovation.
The plan would give counseling, financial and marketing aid, technical assistance, and other services to help MSMEs scale up.
This new programme was created by combining previous sub-schemes for MSMEs in the areas of incubation, design, and intellectual property rights. Individual programmes will continue to operate under these models.
The “MSME Innovative Scheme’s” incubation component will assist MSMEs in implementing cutting-edge technologies. However, this assistance is limited to MSMEs seeking validation of their concepts at the proof-of-concept stage.
The government will recognize some institutions as business incubators. These institutions are known as host institutes, and they will receive financial support of nearly Rs 15 lakh per proposal.
The government also announced the MSME Idea Hackathon, which will solicit ideas from MSMEs, innovators, and students through host institutes.
What are the Design component?
The design component of the “MSME Innovative Scheme” will assist in resolving issues with product design, both new and current. Partner institutions would include IISc Bangalore, IITs, NITs, the National Institute of Design, and others. This component of the strategy also includes financial aid.
Intellectual property rights (IPR)
The “MSME Innovative Scheme’s” IPR component will address actions relating to the protection and commercialization of MSMEs’ ideas. In this regard, assistance with consulting will be provided. MSMEs would be paid for the costs of patent, trademark, geographical indications (GI), and design registration.
Support for equity
The government has promised equity funding of up to Rs 1 crore for the commercialization of ideas, designs, and patents. This will assist MSMEs in expanding and raising further funding.