Eligibility Criteria For ‘Deep Tech’ Start-ups

Context

Officially, the Union Government has specified Deep Tech Start-ups by a gazette notification of the Department of Promotion of Industry and Internal Trade (DPIIT).

Deep Technology

• Deep tech is a term used to denote complex and ground breaking technologies that can initiate a paradigm shift, and offer solutions to the future.
• The word is applied to state innovative research in nanotechnology, biotechnology, material sciences, quantum technologies, semiconductors, artificial intelligence, data sciences, robotics, 3D printing, etc. 

Eligibility Criteria for Deep Tech Start-up 

• A deep tech start-up has to according to the DPIIT notification.
• Invest majority of its finances into research and development (R&D); 
  • has or is attempting to develop a major new intellectual property (IP) and is making efforts to commercialise the same; 
• Faces have long development horizons, long gestation periods, high capital and infrastructure needs, and have great technical or scientific uncertainty.
• A start up is less than 10 years old, and less than 100 crore annual turnover. Nevertheless a deep tech company can count on being a start-up as long as 20 years and turnover of up to Rs 300 crore.
• Certification Mechanism: In order to qualify as a deep tech start-up, the companies should request a certificate by the DPIIT. The determinations have been made on an Inter-Ministerial Board of Certification, which includes:
  • DPIIT (Convener) Joint Secretary.
  • Department of Scientific and Technological Representative.
  • Representative Department of Biotechnology (DBT).
• It also restricts a specified start-up to engage in any other activity, which is not directly related to its main mandate of working and developing new knowledge such as investing in real estate or speculative assets.

Significance of India’s Deep-Tech Ambitions

• Global Leadership: It makes India a preferred R&D center in the global system of China+1, where the large pool of STEM talent will be used as a first-mover in new frontier technology, including Quantum Computing and 6G.
• Technological Sovereignty: Weakens excessive dependence on imported goods to national security, defense, and space, so India will not be susceptible to world imports shutdowns.
• Making Local Solutions Local Dilemmas: Empowers India-first solutions to colossal social problems, like AI to rural health, precision farming to food security, and green hydrogen to energy self-reliance.
• Economic Value: Strong deep-tech ecosystem would help India to climb the global value ladder, no longer providing low-cost services and assembly-based production, but high-value research, design and intellectual property generation.

Challenges 

• Deep tech is frequently capital-intensive and has long development cycles, and thus is less appealing to the traditional venture capital.
• The availability of specialised labs, supercomputing and testing facilities is limited which slows innovation. 
• There is a lack of specialised research talent and relatively low industry based research spending with reference to the global level. 
• Deep tech solutions have a high likelihood of regulatory and adoption obstacles which slow down commercialisation.

Way Ahead 

• India must intensify R&D, enhance IP and regulatory assistance To catalyze the potential of deep tech,
• A talent development is required based on industry-academia cooperation, world partnerships promotion, and market adoption. 
• Deep-tech startups will lead to innovation and economic growth with the support of the policies and their financial subsidies.

Source: The Hindu

Mains PYQ

(Q) COVID-19 pandemic has caused unprecedented devastation worldwide. However, technological advancements are being availed readily to win over the crisis. Give an account of how technology was sought to aid management of the pandemic. (2020)

• Officially, the Union Government has specified Deep Tech Start-ups by a gazette notification of the Department of Promotion of Industry and Internal Trade (DPIIT).
• Deep tech is a term used to denote complex and ground breaking technologies that can initiate a paradigm shift, and offer solutions to the future.
• The word is applied to state innovative research in nanotechnology, biotechnology, material sciences, quantum technologies, semiconductors, artificial intelligence, data sciences, robotics, 3D printing, etc.

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