During his recent visit to the United States, Prime Minister Narendra Modi held a high-profile roundtable with top American technology CEOs, focusing on innovation, collaboration, and India’s growing tech space.
The Massachusetts Institute of Technology (MIT) School of Engineering hosted the roundtable, which included leaders of companies specialising in artificial intelligence, quantum computing, semiconductors, and biotechnology.
Drawing from my experience and insights as an alumnus of this great institution, I contemplate how Indian entrepreneurs can adapt and apply lessons from MIT to create successful, scalable, sustainable and global-scale businesses.
The Massachusetts Institute of Technology and the broader United States startup ecosystem are renowned for fostering innovation, entrepreneurship, and groundbreaking technology. The lessons from these environments offer valuable insights for Indian startups, particularly as India emerges as one of the world’s most vibrant and promising startup ecosystems.
INNOVATIVE CULTURE
MIT’s culture of innovation is at the heart of its success in nurturing entrepreneurs. The “learn by doing” philosophy, coupled with a strong emphasis on interdisciplinary collaboration, encourages students and researchers to experiment, take risks, and learn from failures.
This culture fosters creativity and builds resilience—an essential trait for any entrepreneur. This is also reflected in MIT’s motto, ‘Mens Et Manus’, which translates from Latin to ‘Mind and Hand’, signifying the fusion of academic knowledge with practical purpose.
While we increasingly emphasise innovation in India, it remains prone to adhering to traditional methods and risk-averse practices. To cultivate a similar culture, Indian startups should encourage open-mindedness, promote cross-functional collaboration, and create safe spaces for experimentation. Incubators and innovation hubs can provide the necessary support and resources for budding entrepreneurs to explore new ideas without fearing failure.
MIT emphasises the importance of ‘high-velocity’ organisations that can develop a “learn-fast” culture, especially from their failures, and absorb that learning as an integral part of the organisation’s knowledge.
MIT’S APPROACH TO ENTREPRENEURSHIP EDUCATION
Disciplined Entrepreneurship Model: MIT’s Disciplined Entrepreneurship model, taught at the Martin Trust Center for MIT Entrepreneurship, provides a structured and well-defined framework and progression. This structured approach can benefit new entrepreneurs in India, offering clear guidance through the startup process. Indian educational institutions and incubators can consider implementing a curriculum based on the Disciplined Entrepreneurship model. This approach can provide welcome guidance for those new to entrepreneurship, especially in a complex ecosystem like India’s.
Alumni Engagement: A study at MIT highlights the significant economic impact of alumni-founded companies. Indian institutions should focus on maintaining strong connections with alumni, encouraging them to contribute to the startup ecosystem as founders, mentors, or investors.
Diverse Engagement Opportunities: MIT alumni engage in the innovation ecosystem through various means, including starting companies, patenting, angel investing, and joining startups as early employees. Indian startups should leverage this multi-faceted approach to engage with experienced professionals and alumni.
International Talent Pool: Indian startups should consider tapping into the global talent pool, potentially through partnerships with international universities or attracting foreign talent to India.
Research Commercialisation: MIT’s success in translating research into commercial ventures offers a model for Indian institutions to bridge the gap between academic research and market applications.
MIT promotes a culture of curiosity and a constant thirst for learning and knowledge. It also emphasises the importance of the art of storytelling for a startup, the necessity of having the spirit of a pirate, and the discipline of a Navy SEAL when building your business.
ACCESS TO RESOURCES
One key advantage of the US startup ecosystem is the abundant access to resources, including funding, mentorship, and infrastructure. The well-established network of angel investors, venture capitalists, and accelerators provides startups with the financial support needed to scale quickly. Moreover, the availability of experienced mentors helps guide entrepreneurs through the complex business journey.
While we have made significant progress in developing an entrepreneurial ecosystem, challenges such as limited access to mentorship persist. Indian startups should leverage government initiatives like Startup India and private sector programs to access capital and mentorship. Additionally, fostering partnerships with international incubators and accelerators can provide Indian startups with exposure to global networks and best practices.
NETWORKING AND COMMUNITY BUILDING
The US startup ecosystem cannot overstate the power of networks and community. Alumni networks, industry associations, and professional groups provide a platform for entrepreneurs to connect, share knowledge, and collaborate. This sense of community not only facilitates access to resources but also creates opportunities for strategic partnerships and collaborations. This is seen in the top startup ecosystems of Silicon Valley, New York City, Boston and Seattle.
Building a strong network is crucial for Indian startups. Engaging with local and international networks such as TiE (The Indus Entrepreneurs), NASSCOM, and others can provide invaluable support and connections. Additionally, participating in industry events, hackathons, and startup competitions can help entrepreneurs expand their network, gain visibility, and attract potential investors and partners.
FOCUS ON INNOVATION AND RESEARCH
MIT and many US startups strongly emphasise cutting-edge research and development (R&D). This focus on innovation is often supported by substantial investment in R&D, partnerships with academic institutions, and a commitment to developing proprietary technology. Such an approach not only differentiates companies in the market but also contributes to long-term sustainability and growth.
Indian startups should be encouraged to invest in R&D and pursue innovation-driven business models. Collaborations between academia and industry can be instrumental in this regard. For example, partnerships with Indian Institutes of Technology (IITs) and other research institutions can provide startups with access to advanced research, talent, and technology. Moreover, government initiatives that support R&D, such as grants and tax incentives, should be leveraged to drive innovation.
SUSTAINABILITY AND LONG-TERM VISION
A key lesson from successful US startups is the importance of sustainability and a long term vision. While pursuing rapid growth is expected, building a resilient business that adapts to changing market conditions is equally important. This includes focusing on sustainable business practices, ethical considerations, and social responsibility.
For Indian startups, adopting a long-term perspective is crucial, especially in an environment where short-term gains can sometimes overshadow the broader mission. Startups should prioritise building a solid foundation, focusing on customer satisfaction, and maintaining ethical standards. Additionally, embracing sustainable practices, such as environmental responsibility and fair labour practices, can enhance the company’s reputation and appeal to socially conscious consumers and investors.
GLOBAL PERSPECTIVE
US startups often have a global outlook from the outset and consider international markets a key component of their growth strategy. The US’s diverse market and strong international connections facilitate this global perspective. For Indian startups, thinking globally can open up new opportunities and mitigate the risks associated with market saturation and economic fluctuations.
CONCLUSION
The lessons from MIT and the US startup ecosystem offer valuable lessons for Indian startups. By fostering a culture of innovation, disciplined entrepreneurship, leveraging available resources, building strong networks, focusing on R&D, adopting a sustainable and long-term vision, and thinking globally, Indian entrepreneurs can navigate the complexities of the Indian market and capitalise on the abundant opportunities. As India continues to grow as a top startup hub, these lessons can be significant in shaping the future of Indian entrepreneurship and driving the creation of world-class businesses. The recommendation is to combine MIT’s structured approach and global perspective with a deep understanding of the Indian market’s needs, aspirations, demographic transition, and building and thinking at population-scale. By doing so, they can contribute to India’s rising prominence in the global startup landscape while addressing the specific challenges and opportunities presented by the Indian market. I firmly believe in Indian startups’ potential to thrive and lead in the global arena, drawing inspiration from one of the world’s most dynamic and innovative ecosystems.
The author is an angel investor and startup mentor for the Atal Innovation Mission, Government of India, and the Atal Incubation Centre-Rambhau Mhalgi Prabhodhini. He is presently the Convenor (Western Maharashtra) of the BJP Intellectual Cell and has recently co-edited the book – Modi’s North East Story. Views expressed in the above piece are personal and solely that of the author. They do not necessarily reflect News18’s views.