Until 1997, graduates and faculty of Massachusetts Institute of Technology set up 4,000 firms employing 11 lakh people and generated $232 billion in worldwide sales. If they had formed an independent nation, it would be the world’s 24th largest economy.

Taking a cue from this, the government will soon endorse a plan to “unleash the entrepreneurial skills” of its scientists, engineers and professors by permitting them to float private firms — while retaining their government jobs — to develop globally competitive technologies, processes and products.

This proposal from the Council for Scientific & Industrial Research (CSIR) for the Cabinet’s OK has been approved by the Prime Minister’s Office who had first suggested this at the CSIR Society meeting in January 2007.

As per the proposal, the research community will be freed from Central Civil Service Conduct Rules and be allowed to dip into the technology or knowledge pool of state-run organizations such as universities, academic institutions and research labs. In return, the start-up company would have to pay premium and royalty to the organisations which could opt for equity in lieu of the intellectual material.

The scientist would be permitted hold equity — even up to a majority — in the company which has to be funded entirely by the promoters. To maintain “balance between public responsibility as an organisation employee and private responsibility as owner of the company,” the scientist will not be involved in day-to-day management but could either be a chairman or non-working director.

... contd.