AICTE Innovation and Startup
AICTE Innovation and Startup
AICTE Innovation and Startup
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Message from Ministry of Human Resource
Development
India aspires to become a 5 much needed guidelines. These
trillion dollar economy in a envision an educational system
near future. To reach this oriented towards startups and
mark, it needs to evolve entrepreneurship opportunities
system and mechanisms to for students and faculty. I
convert the present appeal all higher education
demographic dividend into institutions to adopt and
Sanjay Shamrao Dhotre high quality technical human popularize these guidelines
Minister of State for Human resource, capable of doing amongst their faculty, staff and
Resource Development
cutting edge research and students, and encourage them
innovation, and deep-tech to actively pursue path of
entrepreneurship. At this innovation and
juncture, the MHRD's entrepreneurship.
Innovation Cell and AICTE I also urge MHRD's
have brought out the innovation cell to proactively
‘National Innovation and coordinate with education
Startup Policy 2019’ for departments of all state
students and faculty. governments to ensure that
I congratulate MHRD's these policy guidelines are
Innovation Cell and AICTE implemented in their true
for conceptualizing these spirit.
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Message from Ministry of Human Resource
Development
Innovation and available for encouraging
entrepreneurship need to students and faculty to purse
emerge as one of the focal startup and entrepreneurship
points of our education related activities, a committee
system and Ministry of was formed under the
Human Resource guidance of Prof. Ashok
Development is making every Jhunjhunwala to evolve set of
R. Subrahmanyam possible effort to achieve this recommendations and guiding
Secretary (Higher Education) goal. We are aggressively principles for higher education
MHRD
promoting initiatives like institutions for promoting
Hackathons, tech-fests, idea innovation and
competition, startup entrepreneurship ecosystem
bootcamps, etc. to foster the within campuses.
culture of innovation in our I firmly believe that the
education institutions. We recommendations prescribed
want large number of students in this document will pave the
and faculty to work on new way for developing and
ideas and convert them into supporting an entrepreneurial
successful enterprises. culture in all the higher
As no formal guidelines were education institutions of India.
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Message from All India Council of Technical
Education
I am very happy to see that published by the AICTE and
the detailed guidelines have being implemented by the
been issued by Ministry of AICTE startup implementation
Human Resource committee headed by first
Development on National generation entrepreneur Shri
Innovation and Startup Policy Sanjay Inamdar and covers
for students and faculties of several practical aspects of
Anil D Sahasrabudhe higher education institutions innovation and startups. The
Chairman, AICTE which further strengthens the guidelines highlight various
Startup Policy released by All important points including
India Council of Technical revenue sharing mechanism
Education in November 2016 for licensing, ownership of IP,
from Rashtrapati Bhawan, equity sharing mechanism
just after few months of between institute and startups
Startup action plan announced incubated at institute.
by the Government of India in I wish Ministry of Human
January 2016. Resource Development and all
I am pleased to share that the the educational institutes in
present policy guidelines are India a grand success in this
built on the earlier version mission.
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Message from University Grant Commission
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Message from Chairman, 'National Innovation
and Startup Policy 2019' Committee
At the outset, I thank the succeed. The goal of the
Ministry of Human Resource institutions should therefore be
Development for providing to link Innovation to
me an opportunity to work on Enterprises to financial
the guidelines with an aim of success.
nurturing Innovation and I sincerely congratulate the
Startups ecosystem in higher Ministry of Human Resource
Ashok Jhunjunwala education institutions. My Development for its initiative
Chairman, NISPC firm belief is that Incubation towards strengthening of
and Innovation need to be innovation and startup
organically interlinked. ecosystem in education
Without innovation, new ecosystem and wish it a grand
enterprises are unlikely to success.
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Message from Innovation Cell, Ministry of
Human Resource Development
At the outset, I would like to our Indian institution figure in top
acknowledge all committee 100 global R&I institutions and
members, without whose active only 3 Indian institutions are
contributions and support, these within top 200. This needs to
policy guidelines would not have change and can only happen if
been possible. our institutions give substantial
These policy guidelines on emphasis on R&I. In next 5 years,
Innovation and Startups have India needs to systematically
Abhay Jere been framed with an aim to work to ensure that it’s 10
Chief Innovation Officer,
promote the innovation and institutions are amongst top 100.
MHRD
entrepreneurship culture within To ensure that innovation and
our higher education institutions. entrepreneurship emerges as the
If India aims to become 5 primary fulcrum of India’s higher
trillion-dollar economy, then it education systems, MHRD’s
needs to evolve systems and Innovation Cell (MIC) is
mechanisms to convert the undertaking multiple initiatives
present demographic dividend like Smart India Hackathon, Atal
into high quality technical Ranking of Institutions of
human resource capable of doing Innovation Achievements
cutting edge research and (ARIIA), establishing
innovation (R&I) and deep-tech Institution’s Innovation Councils
entrepreneurship. (IIC) in 1500+ institutions,
On Global Innovation Index Innovation Competitions, etc.
(GII) 2019, India’s rank is 52 The present National Innovation
while China is far ahead of us and Startup Policy is yet another
and ranks 14. Considering step in that direction. We believe
India’s real R&I potential, we that this policy will immensely
should certainly aspire to be benefit central institutions, state
within top 25 in next 5 years and universities and affiliated
it can happen only if we can institutions which are currently
develop robust Innovation and not well verse at handling
entrepreneurship ecosystem challenges related to innovation,
within our higher education startup and entrepreneurship
institutions. Moreover, conceived by their faculty and
unfortunately at present, none of students.
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Content
Preamble 10
Vision 10
National Innovation and Startup Policy 2019 for Students and Faculty 11-21
Way Forward 21
Glossary 22-23
Acknowledgments 24
Bibliography 24
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Preamble
In November 2016, All India Council of Technical Education (AICTE) released a Startup Policy document for
AICTE approved institutions, to address the need of inculcation of innovation and entrepreneurial culture in
higher education institutions (HEIs). The policy primarily focused on guiding the AICTE approved institutions
in implementing ‘Startup Action Plan’ of Government of India. Subsequent to release of the Startup policy by
AICTE and further interaction & feedback received from education institutions, a need was felt for a more
elaborate and comprehensive policy guiding document, which could be applicable for all the HEIs in India.
A fifteen membered committee was constituted by Ministry of Human Resource Development to formulate
detailed guidelines for various aspects related to innovation, Startup and entrepreneurship management. This
committee deliberated on various facets for nurturing the innovation and Startup culture in HEIs, which
covered Intellectual Property ownership, revenue sharing mechanisms, norms for technology transfer and
commercialization, equity sharing, etc. After multiple rounds of meetings, National Innovation and Startup
Policy 2019 for students and faculties of HEIs were prepared.
Vision
India aspires to become 5 trillion-dollar economy by 2024. To reach the mark, it needs to evolve systems and
mechanisms to convert the present demographic dividend into high quality technical human resource capable
of doing cutting edge research and innovation and deep-tech entrepreneurship.
The 'National Student and Faculty Startup policy 2019' for HEIs is a guiding framework to envision an
educational system oriented towards start ups and entrepreneurship opportunities for student and faculties.
The guidelines provide ways to Indian HEIs for developing entrepreneurial agenda, managing Intellectual
Property Rights (IPR) ownership, technology licensing and equity sharing in Startups or enterprises
established by faculty and students.
In India, innovation is still not the epicenter of education. In order to achieve the cultural and attitudinal shift
and to ensure that ‘Innovation and Startup’ culture is the primary fulcrum of our higher education system a
policy framework and guidelines are the need of this hour. These guidelines will enable institutions to actively
support their faculty, staff and students to participate in innovation and entrepreneurship (I&E) related
activities, thus encouraging students and faculty to consider start ups and entrepreneurship as a career option.
These recommendations and guiding principles will also help HEIs in creating their own policy framework, if
required.
Moreover, these guidelines will facilitate Ministry of Human Resource Development in bringing uniformity
across HEIs in terms of IPR ownership management, technology licensing and institutional startups policy,
thus enabling creation of a robust innovation and Startup ecosystem across all HEIs. These guidelines will also
help emphasize that the entrepreneurship is all about creating a business, which is financially successful.
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National Innovation and Startup Policy 2019 for Students and Faculty
1. Strategies and Governance
a. Entrepreneurship promotion and development should be one of the major dimensions of the HEIs
strategy. To facilitate development of an entrepreneurial ecosystem in the organization, specific
objectives and associated performance indicators should be defined for assessment.
b. Implementation of entrepreneurial vision at the institute should be achieved through mission
statements rather than stringent control system. The entrepreneurial agenda should be the
responsibility of a senior person at the level of dean/ director/ equivalent position to bring in required
commitment and must be well understood by the higher authorities. However, one must understand
that promoting entrepreneurship requires a different type of mindset as compared to other academic
activities. Therefore, this person should be very carefully chosen from someone who understands the
industry and above all business.
c. Resource mobilisation plan should be worked out at the institute for supporting pre-incubation,
incubation infrastructure and facilities. A sustainable financial strategy should be defined in order to
reduce the organizational constraints to work on the entrepreneurial agenda.
i. Investment in the entrepreneurial activities should be a part of the institutional financial strategy.
Minimum 1% fund of the total annual budget of the institution should be allocated for funding
and supporting innovation and startups related activities through creation of separate ‘Innovation
fund’.
ii. The strategy should also involve raising funds from diverse sources to reduce dependency on the
public funding. Bringing in external funding through government (state and central) such as DST,
DBT, MHRD, AICTE, TDB, TIFAC, DSIR, CSIR, BIRAC, NSTEDB, NRDC, Startup India,
Invest India, MeitY, MSDE, MSME, etc. and non-government sources should be encouraged.
iii. To support technology incubators, academic institutes may approach private and corporate
sectors to generate funds, under Corporate Social Responsibility (CSR) as per Section 135 of the
Company Act 2013.
iv. Institute may also raise funding through sponsorships and donations. Institute should actively
engage alumni network for promoting Innovation & Entrepreneurship (I&E).
d. For expediting the decision making, hierarchical barriers should be minimized and individual
autonomy and ownership of initiatives should be promoted.
e. Importance of innovation and entrepreneurial agenda should be known across the institute and should
be promoted and highlighted at institutional programs such as conferences, convocations, workshops,
etc.
f. Student and faculty startup Policy and action plan should be formulated at university level, which is in
line with the current document along with well-defined short-term and long-term goals. Micro action
plan should also be developed by the affiliated institutes to accomplish the policy objectives.
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g. Institute should develop and implement I & E strategy and policy for the entire institute in order to
integrate the entrepreneurial activities across various centers, departments, faculties, within the
institutes, thus breaking the silos.
h. Product to market strategy for startups should be developed by the institute on case to case basis.
i. Development of entrepreneurship culture should not be limited within the boundaries of the
institution.
i. HEIs should be the driving force in developing entrepreneurship culture in its vicinity (regional,
social and community level). This shall include giving opportunity for regional startups,
provision to extend facilities for outsiders and active involvement of the institute in defining
strategic direction for local development.
ii. Strategic international partnerships should be developed using bilateral and multilateral channels
with international innovation clusters and other relevant organizations. Moreover, international
exchange programs, internships, engaging the international faculties in teaching and research
should also be promoted.
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g. Allow faculty and staff to take off for a semester / year (or even more depending upon the decision of
review committee constituted by the institute) as sabbatical/ unpaid leave/ casual leave/ earned leave
for working on startups and come back. Institution should consider allowing 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.
h. Start a part-time/full time MS/ MBA/ PGDM (Innovation, entrepreneurship and venture
development) program where one can get degree while incubating and nurturing a startup company.
AICTE has already issued guidelines for a similar program.
i. Institute will facilitate the startup activities/ technology development by allowing students/ faculty/
staff to use institute infrastructure and facilities, as per the choice of the potential entrepreneur in the
following manners:
i Short-term/ six-month/ one-year part-time entrepreneurship training.
ii Mentorship support on regular basis.
iii Facilitation in a variety of areas including technology development, ideation, creativity,
design thinking, fund raising, financial management, cash-flow management, new venture
planning, business development, product development, social entrepreneurship, product-
costing, marketing, brand-development, human resource management as well as law and
regulations impacting a business.
iv Institute may also link the startups to other seed-fund providers/ angel funds/ venture funds
or itself may set up seed-fund once the incubation activities mature.
v License institute IPR as discussed in section 4 below.
j. 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
(a limit of 9.5% is suggested so that institute has no legal liability arising out of startup. The institute
should normally take much lower equity share, unless its full-time faculty/ staff have substantial
shares). Other factors for consideration should be space, infrastructure, mentorship support, seed-
funds, support for accounts, legal, patents etc.
• For staff and faculty, institute can take no-more than 20% of shares that staff / faculty takes
while drawing full salary from the institution; however, this share will be within the 9.5%
cap of company shares, listed above.
• No restriction on shares that faculty / staff can take, as long as they do not spend more than
20% of office time on the startup in advisory or consultative role and do not compromise
with their existing academic and administrative work / duties. In case the faculty/ staff holds
the executive or managerial position for more than three months in a startup, then they will
go on sabbatical/ leave without pay/ earned leave.
• In case of compulsory equity model, Startup may be given a cooling period of 3 months to
use incubation services on rental basis to take a final decision based on satisfaction of
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services offered by the institute/incubator. In that case, during the cooling period, institute
cannot force startup to issue equity on the first day of granting incubation support.
k. The institute should also provide services based on mixture of equity, fee-based and/ or zero payment
model. So, a startup may choose to avail only the support, not seed funding, by the institute on rental
basis.
l. Institute could extend this startup facility to alumni of the institute as well as outsiders.
m. Participation in start uprelated activities needs to be considered as a legitimate activity of faculty in
addition to teaching, R&D projects, industrial consultancy and management duties and must be
considered while evaluating the annual performance of the faculty. Every faculty may be encouraged
to mentor at least one startup.
n. 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.
o. Institutions might also need to update/change/revise performance evaluation policies for faculty and
staff as stated above.
p. Institute should ensure that at no stage any liability accrue to it because of any activity of any startup.
q. Where a student/ faculty startup policy is pre-existing in an institute, then the institute may consider
modifying their policy in spirit of these guidelines.
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office hours (for staff and faculty) or not as a part of curriculum by student, then product/ IPR will be
entirely owned by inventors in proportion to the contributions made by them. In this case, inventors can
decide to license the technology to third parties or use the technology the way they deem fit.
c. If there is a dispute in ownership, a minimum five membered committee consisting of two faculty
members (having developed sufficient IPR and translated to commercialisation), two of the institute’s
alumni/ industry experts (having experience in technology commercialisation) and one legal advisor
with experience in IPR, will examine the issue after meeting the inventors and help them settle this,
hopefully to everybody’s satisfaction. Institute can use alumni/ faculty of other institutes as members,
if they cannot find sufficiently experienced alumni / faculty of their own.
d. Institute IPR cell or incubation center will only be a coordinator and facilitator for providing services to
faculty, staff and students. They will have no say on how the invention is carried out, how it is patented
or how it is to be licensed. If institute is to pay for patent filing, they can have a committee which can
examine whether the IPR is worth patenting. The committee should consist of faculty who have
experience and excelled in technology translation. If inventors are using their own funds or non-
institute funds, then they alone should have a say in patenting.
e. All institute’s decision-making body with respect to incubation / IPR / technology-licensing will
consist of faculty and experts who have excelled in technology translation. Other faculty in the
department / institute will have no say, including heads of department, heads of institutes, deans or
registrars.
f. Interdisciplinary research and publication on startup and entrepreneurship should be promoted by the
institutions.
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incentives and reward mechanisms for all staff and stakeholders that actively contribute and support
entrepreneurship agenda and activities.
i. The reward system for the staff may include sabbaticals, office and lab space for entrepreneurial
activities, reduced teaching loads, awards, trainings, etc.
ii. The recognition of the stakeholders may include offering use of facilities and services, strategy
for shared risk, as guest teachers, fellowships, associateships, etc.
iii. A performance matrix should be developed and used for evaluation of annual performance.
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d. For strengthening the innovation funnel of the institute, access to financing must be opened for the
potential entrepreneurs.
i. Networking events must be organized to create a platform for the budding entrepreneurs to meet
investors and pitch their ideas.
ii. Provide business incubation facilities: premises at subsidised cost. Laboratories, research
facilities, IT services, training, mentoring, etc. should be accessible to the new startups.
iii. A culture needs to be promoted to understand that money is not FREE and is risk capital. The
entrepreneur must utilize these funds and return. While funding is taking risk on the
entrepreneur, it is an obligation of the entrepreneur to make every effort possible to prove that the
funding agency did right in funding him/ her.
e. Institute must develop a ready reckoner of Innovation Tool Kit, which must be kept on the homepage
on institute’s website to answer the doubts and queries of the innovators and enlisting the facilities
available at the institute.
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would convert an innovation successfully into a product, others may join the leader and work for
the startup. It is important to understand that entrepreneurship is about risk taking. One must
carefully evaluate whether a student is capable and willing to take risk.
c. Pedagogical changes need to be done to ensure that maximum number of student projects and
innovations are based around real life challenges. Learning interventions developed by the institutes
for inculcating entrepreneurial culture should be constantly reviewed and updated.
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Way Forward
Uniform and successful implementation of the 'National Innovation and Startup Policy 2019’ for students and
faculty of all the HEIs across the nation is the main objective. In order to achieve this, full-fledged support of
education institutions will be important. The roadmap suggested through this document is ‘broad guidelines’
and if required, these institutions may develop their own comprehensive guidelines and policy on innovation
and startups with greater details. The institutes are expected to make use of already available infrastructure as
much as possible to achieve the implementation of suggestive measures.
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Glossary
Accelerators Startup Accelerators design programs in batches and transform promising business
ideas into reality under the guidance of mentors and several other available
resources.
Angel Fund An angel investor is a wealthy individual who invests his or her personal capital and
shares experiences, contacts, and mentors (as possible and required by the startup
in exchange for equity in that startup). Angels are usually accredited investors.
Since their funds are involved, they are equally desirous in making the startup
successful.
Cash flow management Cash flow management is the process of tracking how much money is coming into
and going out of your business.
Co-Creation Co-creation is the act of creating together. When applied in business, it can be used
as is an economic strategy to develop new business models, products and services
with customers, clients, trading partner or other parts of the same enterprise or
venture.
Compulsory Equity An equity share, commonly referred to as ordinary share also, represents the form
of fractional or part ownership in which a shareholder, as a fractional owner,
undertakes the maximum entrepreneurial risk associated with a business venture.
The holders of such shares are members of the company and have voting rights.
Corporate Social Corporate social responsibility (CSR) is a self-regulating business model that helps
Responsibility a company be socially accountable – to itself, its stakeholders, and the public.
Cross-disciplinary Cross-disciplinary practices refer to teaching, learning, and scholarship activities
that cut across disciplinary boundaries.
Entrepreneurial culture A culture/ society that enhance the exhibition of the attributes, values, beliefs and
behaviors that are related to entrepreneurs.
Entrepreneurial An Individual who has an entrepreneurial mindset and wants to make his/her idea
Individuals successful.
Entrepreneurship Entrepreneurship education seeks to provide students with the knowledge, skills
education and motivation to encourage entrepreneurial success in a variety of settings.
Experiential learning Experiential learning is the process of learning through experience, and is more
specifically defined as learning through reflection on doing.
Financial management Financial Management is the application of general principles of management to
the financial possessions of an enterprise.
Hackathon A hackathon is a design sprint-like event in which computer programmers and
others involved in software development, including graphic designers, interface
designers, project managers, and others, often including domain experts,
collaborate intensively on software projects.
Host Institution Host institutions refer to well-known technology, management and R&D
institutions working for developing startups and contributing towards developing a
favorable entrepreneurial ecosystem.
Incubation Incubation is a unique and highly flexible combination of business development
processes, infrastructure and people, designed to nurture and grow new and small
businesses by supporting them through the early stages of development.
Intellectual Property A licensing is a partnership between an intellectual property rights owner (licensor)
Rights Licensing and another who is authorized to use such rights (licensee) in exchange for an
agreed payment (fee or royalty).
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Knowledge Exchange Knowledge exchange is a process which brings together academic staff, users of
research and wider groups and communities to exchange ideas, evidence and
expertise.
Pedagogy and Experiential It refers to specific methods and teaching practices (as an academic subject or
Learning theoretical concept) which would be applied for students working on startups. The
experiential learning method will be used for teaching 'startup related concepts and
contents' to introduce a positive influence on the thought processes of students.
Courses like 'business idea generation' and 'soft skills for startups' would demand
experiential learning rather than traditional class room lecturing. Business cases
and teaching cases will be used to discuss practical business situations that can help
students to arrive at a decision while facing business dilemma(s). Field based
interactions with prospective customers; support institutions will also form a part
of the pedagogy which will orient the students as they acquire field knowledge.
Pre-incubation It typically represents the process which works with entrepreneurs who are in the
very early stages of setting up their company. Usually, entrepreneurs come into
such programs with just and idea of early prototype of their product or service. Such
companies can the graduate into full-fledged incubation programs.
Prototype A prototype is an early sample, model, or release of a product built to test a concept
or process.
Science parks A science park, also known as a research park, technology park or innovation
centre, is a purpose-built cluster of office spaces, labs, workrooms and meeting
areas designed to support research and development in science and technology.
Seed fund Seed fund is a form of securities offering in which an investor invests capital in a
startup company in exchange for an equity stake in the company.
Special Purpose Vehicle Special purpose vehicle, also called a special purpose entity, is a subsidiary created
by a parent company to isolate financial risk. Its legal status as a separate company
makes its obligations secure even if the parent company goes bankrupt.
Startup An entity that develops a business model based on either product innovation or
service innovation and makes it scalable, replicable and self-reliant and as defined
in Gazette Notification No. G.S.R. 127(E) dated February 19, 2019.
Technology Business Technology Business incubator (TBI) is an entity, which helps technology-based
Incubator startup businesses with all the necessary resources/support that the startup needs
to evolve and grow into a mature business.
Technology Technology commercialization is the process of transitioning technologies from
Commercialization the research lab to the marketplace.
Technology licensing Agreement whereby an owner of a technological intellectual property (the
licensor) allows another party (the licensee) to use, modify, and/or resell that
property in exchange for a compensation.
Technology management Technology management is the integrated planning, design, optimization,
operation and control of technological products, processes and services.
Venture Capital It is the most well-known form of start up funding. Venture Capitalists (VCs)
typically reserve additional capital for follow-up investment rounds. Another huge
value that VCs provide is access to their networks for employees or clients for
products or services of the startup.
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Acknowledgements
I thank Shri R. Subrahmanyam, Secretary, Higher Education, Ministry of Human Resource Development for
this initiative and providing guidance throughout the process.
I want to thank all the members of committee on ‘National Innovation and Startup Policy 2019' for students and
faculty of higher education Institutions, specially Professor Ashok Jhunjunwala, for his valuable insights and
recommendations to enable formulation of these guidelines for HEIs. I express my sincere thanks to University
Grants Commission and All India Council of Technical Education, for offering all the required support. I
sincerely appreciate the members of drafting team who worked for creating this guideline document and gave
their inputs throughout its preparation.
Abhay Jere
Member Secretary,
'National Innovation and Startup Policy 2019' Committee
Bibliography
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(SSIP) 2017, Directorate of Technical Education, Government of Gujarat, October 2017
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TEQIP-III, Ministry of Human Resource Development
• A Guiding Framework for Entrepreneurial Universities, OECD, European Commission, 18th December,
2012
• For Faculty: Best Practices for Startups, Stanford University, https://otl.stanford.edu/industry/stanford-
startups/faculty-best-practices-startups, visited on 5th September, 2019
• Faculty Entrepreneurship Policy, DA-IICT, 30th September, 2015
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startups/students-best-practices-startups, visited on 5th September, 2019
• Startup Policy AICTE- 2016, All India Council of Technical Education, November 2016
• Student Startup Policy 2015, Kerala Technological University, Kerala
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