Vel Tech Innovation and Startup Policy
The brief history behind Innovation Policy for HEIs
- It all started from Menlo Park, Edison Township, New Jersey, USA nothing but an invention factory built by Edison in 1875.
- National Science Foundation (NSF), USA 1950
- American and European continental governments Identified HEIs as the most eligible places to nurture the research and development activities and implemented policies and schemes to cultivate the innovation driven GDP boost through industry academia collaborations during post 1970s.
- It took atleast 60 years (Since 1950) to realize the same in India, and the very first Educational institute based Research park was established in 2010 as IIT Madras Research Park.
- And the official government policy on the norms and benefits for the faculty and students who involve in innovation and entrepreneurship activities has arrived in 2019, and as on 19.7.22, we all are in the earlier phase of implementing the policy in the ground reality to understand its outcomes and dynamics.
Admission Categories into Vel Tech Innovation & Startup Scheme
Faculty, academic staff and students of VEL TECH having the intent of trying out a novel technological idea for up-gradation to a commercial proposition, scaling up a laboratory proven concept, and setting up a technology business enterprise qualify for a pre- incubation project.
This category people must have an idea and they will undergo pre-incubation stage. It is expected that the innovator would like to commercialize the technology and would graduate to Category II within 1 year from beginning the pre- incubation.
Technology based Start-up Company promoted by a first generation entrepreneur desirous of R&D partnership with the institute or a company, with the objective of commercializing a novel technological idea, scaling up a laboratory proven concept and setting up a technology business enterprise. Following are the eligibility criteria for admission to VEL TECH Innovation and startup scheme.
- It is open to the faculty, staff, researchers, alumni and students of VEL TECH having S & T background.
- VEL TECH Innovation and startup policy would also welcome outside promoters.
- Majority of Founders/core team should be Indian citizens.
- A company has to be registered with RoC (Registrar of Companies) to be incubated in VEL TECH-TBI (except Category I). A company not registered with RoC (Proprietorship or Partnership) would have to do so within 6 months of admission to VEL TECH-TBI or before the disbursal of seed fund, whichever is earlier. A company can exist as a private limited company, proprietorship or partnership before it is admitted.
- VEL TECH Innovation and startup scheme would admit only technology based companies in any engineering discipline. Acceptable business would involve innovative, technology-based product, idea or service.
The Vel Tech Innovation and Startup Policy ensures the following:
- It Will provide incubation support for both faculty & students
- It Will allow licensing of IPR from institute to startup
- It Will allow setting up a startup (including social startups) and working part-time for startups while studying/working:
- Student entrepreneurs would be allowed to sit for the examination, even if their attendance is less than the minimum permissible percentage, with due permission from the institute.
- VEL TECH allows its students to take a semester/year break (or even more depending upon the decision of review committee constituted by the institute) to work on their startups and re-join academics to complete the course. Student entrepreneurs may earn academic credits for their efforts while creating an enterprise. Institute would set up a review committee for the review of startup by students, and based on the progress made, it may consider giving appropriate credits for academics.
- Faculty and staff are allowed to take off for a semester / year (or even more depending upon the decision of review committee constituted by the institute) as unpaid leave/casual leave/earned leave for working on startups and come back. VEL TECH allows the use of its resource to faculty/students/staff wishing to establish start up as a fulltime effort. The seniority and other academic benefits during such period may be preserved for such staff or faculty.
- In return of the services and facilities, institute may take 2% to 9.5% equity/stake in the startup/company, based on brand used, faculty contribution, support provided and use of institute’s IPR.
- For staff and faculty, institute can take a maximum of 20% of shares that staff/faculty takes while drawing full salary from the institution; however, this share will be with in the 9.5% cap of company shares.
- Product development and commercialization as well as participating and nurturing of startups would now be added to a bucket of faculty-duties and each faculty would choose a mix and match of these activities (in addition to minimum required teaching and guidance) and then respective faculty are evaluated accordingly for their performance and promotion.
Incentives for Faculty & Students engaging in Innovation and Entrepreneurship activities
- For every successful Patent grant obtained by students and faculty, cash award of Rs. 10000 (Will be shared equally by the number of inventors) will be provided.
- Faculty and staff are to be encouraged to do courses on innovation, entrepreneurship management and venture development. In order to attract and retain right people, institute would develop academic and non-academic incentives and reward mechanisms for all staff and stakeholders that actively contribute and support entrepreneurship agenda and activities.
- The reward system for the staff may include sabbaticals, office and lab space for entrepreneurial activities, reduced teaching loads, awards, trainings, etc.
- The recognition of the stakeholders may include offering use of facilities and services, strategy for shared risk, as guest teachers, fellowships, associate ships, etc.
- A performance matrix would be developed and used for evaluation of annual performance.
- For better coordination of the entrepreneurial activities, norms for faculty to do start- ups has been created by the institutes. Only those technologies would be taken for faculty start-ups which originate from within VEL TECH.
- Role of faculty may vary from being an owner/ direct promoter, mentor, consultant or as on-board member of the startup.
- Institutes should work on developing a policy on ‘conflict of interests’ to ensure that the regular duties of the faculty don’t suffer owing to his/her involvement in the startup activities.
- Faculty startup may consist of faculty members alone or with students or with faculty of other institutes or with alumni or with other entrepreneurs.
- In case the faculty/staff holds the executive or managerial position for more than three months in a start-up, they will go on sabbatical/leave without pay/utilize existing leave.
- Faculty must clearly separate and distinguish on-going research at the institute from the work conducted at the startup/company.
- In case of selection of a faculty startup by an outside national or international accelerator, a maximum leave (as sabbatical/existing leave/unpaid leave/casual leave/earned leave) of one semester/ year (or even more depending upon the decision of review committee constituted by the institute) may be permitted to the faculty.
- Faculty must not accept gifts from the startup.
- Faculty must not involve research staff or other staff of institute in activities at the startup and vice-versa.
- Human subject related research in startup should get clearance from ethics committee of the institution.
National Innovation and Startup Policy document
Vel Tech Innovation and Startup Policy document
Vel Tech IPR Policy document
Contact Person of NISP Coordinator
Mr. Saravanan J – Assistant Professor
Department of Civil Engineering
Mob:- +91 9786665137