Innovation Voucher Program (IVP)
Innovation voucher programs (IVP) are a means of increasing the innovation capacity of micro, small and medium-sized enterprises (MSME). Relying on vouchers allows the allocation of subsidies (financial support in the form of a non-repayable grant) in a demand-oriented and non-bureaucratic way, which is both efficient and effective.
Vouchers are used by innovative entrepreneurs to co-finance services of Innovation/Technology Experts required to manage the innovation processes in an optimal way and/or to co-finance the services of research and development (R&D) institutes needed for prototype development, testing of materials and so on.
Innovation-vouchers are granted on a 50% co-finance agreement for services like innovation potential analysis (Voucher – A), in-depth consulting of innovation process (Voucher – B1), project management (Voucher – B2) and prototype development (Voucher – C), Innovation vouchers support the preparation, development and implementation of new products, processes or services, or support the improvement of existing products, processes or services.
- Promote the innovative power and the implementation speed of innovations of Micro, Small and Medium scaled enterprises (MSMEs)
- Facilitate easy access to advisory services of Research & Development (R & D) institutes to MSMEs.
- Strengthen interface between R & D institutes and MSMEs.
- Introducing new or improved goods or services and/or
- Implementing new or improved operational processes and/or
- Implementing new or improved organisational/managerial processes; in order to improve market share, competitiveness and quality, while reducing costs.
Following Germany’s successful model, the TANSTIA-FNF Service Center (TFSC) has launched innovation voucher program (IVP) in all districts of Tamil Nadu on a pilot basis with the aim of giving a boost to micro, small and medium-sized enterprises (MSMEs) capacity to innovate.
Company Name : M/s. Banana rope production centre
Sector : Agriculture & Allied services
Innovation : Product Innovation – Miniature Carding Machine
Banana trees (mainly the trunk portion ) after delivering bananas are discarded as there is no practical utility. For that Banana Rope Production Centre has researched and technically achieved a method of processing the banana trunk into strong fibre/rope with applications like mats – screens etc besides the rope itself. Turning an agro waste into useful product and generating employment for village women is really an innovation. In addition, this company is technically upgrading the rope making process by designing and developing a semi -automatic machine (currently the banana rope manufacturing is done by manually operated machines by women work force) and increasing the production capacity is another step in right direction. Currently, manually operated machine patented which speaks more about his commercial shrewdness.
The current production rate is 250mtrs per hour or 2000 metres per shift per machine totally 5 women or needed per machine and with great difficulty they are producing ropes with seven machines and production per month is 14k metres x 25 days=3.5 Lakhs metres per month. The proposed semi automatic machine will be designed and developed for a production capacity of6000 metres per shift. This machine can be manned with only one labourer and night shift can be run indicating daily production possibilities of 12k metres and monthly production of 12kx25= 3 Lakhs metres per machine per month. More importantly the manufacturing cost(raw material plus conversion ) on semi automatic machine works out to less than 20paise per metre while selling price available is 75-85 paise per metre. Excellent demand excellent profit margin is the scenario of banana rope. A technically feasible economically viable project.