Poverty Alleviation: Study on Small and Medium (SME's) Scale Organizations of India

Abstract

The chief instrument of innovation is entrepreneurship. Creating wealth through the effective use of resources having new capacities is innovation. Successful entrepreneurs who have individual motivation-for money, power, curiosity or desire for fame or recognition, try to create value by making significant contributions. India is increasingly becoming a top global innovator for products and services. However, there are pockets of innovative activities in both the formal and informal sectors, innovation remains concentrated in a small segment of the economy. The country today is underper forming relative to its innovation potential- with direct implications for long-term industrial competitiveness and economic growth. In order to help less-productive enterprises absorb knowledge, the best strategy will be to create an environment where they can learn from more productive firms. If all enterprises could at least achieve national best practices based on knowledge already in use in India, economic output could more than double. India would benefit from strengthening efforts to create and commercialize knowledge, as well as better diffuse existing global and local knowledge and increase the capacity of smaller enterprises to absorb it. To help alleviate poverty and sustain rapid growth, India needs to aggressively harness its amovation potential, by relying on innovation-led, rapid, and inclusive growth to achieve economic and social transformation.