1. The document compares innovation landscapes and opportunities for collaboration between the USA, India, and Israel. It finds that the USA is a leader in breakthrough innovation, India in frugal innovation, and Israel in sustainable innovation.
2. The economies of the USA and India provide large market opportunities for collaboration, with the USA serving as a gateway to developed markets and India an entry point to emerging markets.
3. Successful collaboration models discussed include partnerships between startups and enterprises/MNCs, startups and governments, and traditional collaborations between governments, enterprises, and academic institutions that could be expanded through new-age partnerships.
2. 2Source: World Economic Outlook Database, World Bank Doing Business 2018 Report, The Global Innovation Index 2017 Report, NASSCOM-Zinnov Indian Start-up Ecosystem Report 2017, Economic Times, Crunchbase, Zinnov Research and Analysis
USA-India-Israel (UII): As-is Innovation Landscape
USA INDIA ISRAEL
GDP1 | GDP Growth2
$ 19.4T | 2.2% $ 2.4T | 6.7% $ 0.35T | 3.1%
Ease of Doing Business Ranking3
6th 100th 54th
Global Innovation Index Ranking4
4th 60th 17th
# Startups 50,000+ 5,000+ 5,000+
Total Funding $ 40-45B $ 3.5-4B $ 4.5-5B
# Unicorns 124 10 3
# Incubators/ Accelerators 1,500+ 190+ ~190
Innovation Indicators
Notes: 1. Current Prices 2017, 2. Annual Real GDP Growth 2017, 3. A high ease of doing business ranking means the regulatory environment is more conducive to the starting and operation of a local firm. The rankings incl. 10 topics - Business Rank, Starting a Business, Dealing with Construction Permits, Getting Electricity,
Registering Property, Getting Credit, Protecting Minority Investors, Paying Taxes, Trading across Borders, Enforcing Contracts, Resolving Insolvency, 4. Global Innovation Index is a function of parameters such as ICT services exports, graduates in science and engineering, e-participation, presence of global R&D companies,
government’s online service, general infrastructure, creative goods exports, knowledge impact, and intellectual property payments
3. 3
USA INDIA ISRAEL
Source: Zinnov Research and Analysis
The three nations display unique characteristics of Innovation
USA: The Nucleus of
‘Breakthrough Innovation’
India: The Hub of
‘Frugal Innovation’
Israel: The of Center of
‘Sustainable Innovation’
Legend High Medium Low
Innovation led by unique technological advances creating newer market
categories or disrupting consumption patterns of existing products and services
Innovation focused at substantial cost reduction while ensuring quality,
concentration on core functionalities, and aligned to country-specific
requirements and challenges
Innovation led by sustainability considerations – esp. social needs and national
security – integrated into the value chain from idea generation to R&D and
commercialization
Breakthrough Innovation
Frugal Innovation
Sustainable Innovation
Innovation Types
Rating of Countries across Innovation Types
Innovation Entities
Enterprises/
MNCs
Academic
Institutions
Start-ups Government
4. 4Source: Federal Labs, Google Finance, Crunchbase Unicorn Leaderboards, Milken Institute Report, University Zinnov Research and Analysis
Notes: 1. 2017, 2. Startup Genome 2017; 2. Market cap of all companies as on 11 January 2018
USA: The Nucleus of ‘Breakthrough Innovation’
Global Tech Titans Platform Centric Companies Deep-tech Defense/ Aviation
• Combined market cap of
$ 2.9T • World’s first ride sharing company
launched in 2009
• Top unicorn with valuation of $ 69B
• Introduced semi-autonomous
‘Autopilot’ feature in 2015
• Market cap of $ 58B greater than Ford
($ 52B)
• Largest accommodation provider in the
world
• 5th largest unicorn with $ 31B valuation
• 500 technologies licensed & 460 patents
issued since 2014 along with 76 startups
created from patented innovations
Examples of Breakthrough Innovation2
Legend: Enterprises/ MNCs Start-ups Academic Institutions Government
50%
of Forbes 100 most
innovative companies1
50%
of the Top 10 global start-up
ecosystems are in USA2
49%
Reuters 100 most
innovative universities1
$ 152B
Spend on R&D in FY 2017
Federal Budget
• First successful Mars mission in 1964 by
Mariner 4 spacecraft
• Human Mars mission planned in 2030s
• F117-Nighthawk, the first operational
aircraft with modern stealth technology
introduced in 1983
• Russian & Chinese modern stealth aircraft
planned to be introduced only in 2018-19
$ 767B
$ 677B
$ 900B
$ 545B
5. 5Source: NASSCOM-Zinnov Indian Start-up Ecosystem Report 2017, Atal Innovation Mission, Live Mint, Crunchbase Unicorn Leaderboards, Zinnov Research and Analysis
Notes: 1. Includes analytics/ advanced analytics, artificial intelligence, IOT, AR/VR, robotics, 3D printing, blockchain
India: The Hub of ‘Frugal Innovation’
Examples of Frugal Innovation
1200+
R&D centers setup by
global MNCs
700+
Total number of advanced
tech start-ups1
900+
Atal Tinkering Labs planned at
schools to drive innovation
~$ 1.5B
Total corpus of Startup India
fund by government
Legend: Enterprises/ MNCs Start-ups Academic Institutions Government
Adaptive
Innovation
• Based on Amazon’s e-commerce model
• 58% share of India’s e-tail market (GMV)
• Largest Indian unicorn with $ 12B valuation
• Based on Uber’s cab aggregator model
• 0.5M drivers, and serving 102 Indian cities
• 4th largest Indian unicorn with $ 6B valuation
Aerospace/ Defense
• Mangalyaan - 4th space agency
to reach Mars at 1/10th the
cost of NASA’s mission
• World’s smallest satellite built
by an Indian student, weighing
just 100 grams
KALAMSAT
Inclusive Healthcare
• Providing prosthetic limb at
1/40th cost compared to USA
• 1.6M+ beneficiaries in over 26
countries
Sustainable Agriculture
• 50% reduction in pesticide
usage by using pheromones-
based traps to attract crop-
damaging pests
• Sprayers for improving farm
mechanization which are 30%
cheaper than sprayers from
other countries
Business Model Innovation Consumer-Tech
• Disrupted telecom industry by
offering free services for 1 year
• Offers all domestic voice calls
for free
• Data tariff plans 30% lower
than competitors
• Reverse Innovation to innovate
in India, & developing products
for local market (such as
portable ultrasound machine)
• Natural refrigerator made
entirely from clay which is ~50%
cheaper than electric
refrigerators (priced at $ 40)
6. 6Source: Economic Times, Forbes, Roland Berger, Zinnov Research and Analysis
Notes: 1. Reuters 100 Most Innovative Universities 2017
Israel: The of Center of ‘Sustainable Innovation’
Examples of Sustainable Innovation
Social Infrastructure
Agriculture Water Power/ Energy
• Reusable plastic trays to collect
dew from air
• Reduces water requirement for
crops/ trees by up to 50%
• Unconventional water sources
to supply ~90% population
• Allows 75% water to be reused
(highest in the world)
• Pioneered a technology to
convert CO2 to fuels which is
10X more efficient that plant
photosynthesis
• Introduced first drip irrigation
system which led to significant
lowering of water consumption
(considering that 60% of the
country’s area is desert)
• Harnessing water from air for
citizens
• Leveraged by Israeli army in
remote areas & combat zones
• System to produce energy from
waste water using bacteria
• 7,000 installations in more
than 70 countries
Security Infrastructure
Cybersecurity Military/ Defense
• IDF Unit 8200, a cyber security
unit estimated to have produced
1000+ startups
• Reported to have taken out
Iranian nuclear centrifuges
• Drone to evacuate wounded
soldiers from battlefield
• Capacity to carry 180 kgs for
upto 2 hours at 120 kmph
• In 2000, Israel became the only
country with operational anti-
missile system• Focus on taking down cyber
threats
• Used by over 50% of
Fortune 100 companies
350+
R&D centers setup by
global MNCs
$ 10B
Total value of start-up
exits (2016)
13,500+
Patents by top innovative
universities1
24
Technology Incubators setup
by government
Legend: Enterprises/ MNCs Start-ups Academic Institutions Government
7. 7
USA
Japan
Germany
France
United Kingdom
INDIA
Brazil
Italy
Canada
South Korea
Russia
Australia
Spain
Mexico
Indonesia
Turkey
Netherlands
Switzerland
Saudi Arabia
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
50,000
55,000
60,000
65,000
70,000
75,000
80,000
85,000
0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 20,000
Source: World Economic Outlook Database, Zinnov Research and Analysis
Notes: 1. Excluding China
USA and India: Conduits for targeting global opportunitiesGDPperCapita,CurrentPrices2017(in$)
GDP, Current Prices 2017 (in $ B)
Top 20 Global Economies Market Opportunities
for Innovation
USA: Gateway to
Developed Markets
INDIA-led Entry to
Emerging Markets
Emerging Economies
Developed Economies
A
B
China
(High barriers to entry)
8. 8Sources: World Economic Outlook Database, Plunkett Research, Trading Economics, Health Affairs, YCharts, Tech Republic, IDC, Statista, Zinnov Research and Analysis
Notes: All figures for 2017, 1. 2016,
USA: Gateway to Developed Markets
Immense Scale of Economy Large Size of Industries High Technology Adoption
$ 19.4T
$ 11.9T
Country GDP, Current
Prices
Total Consumer
Spending
Total Government
Expenditure
Overall Value of
Imports
$ 6.9T
$ 250B
$ 5.7T
$ 2.2T
Total Retail Sales
Manufacturing
Contribution to GDP
Overall Size of the
Healthcare Industry
Total Assets of US Banks
$ 3.6T
$ 17.2T
$ 63B
$ 77B
R&D Spend of
Software Companies1
Overall Public Cloud
market
SMB Market for
Cloud Services
Big Data and Business
Analytics Market
$ 31B
$ 80B
9. 9
Large Scale Available for Businesses Challenges across Social Infrastructure
Source: Worldometers, NCAER Report, Ministry of MSME-GOI, NASSCOM-Zinnov Indian Start-up Ecosystem Report 2017, News18, Bloomberg, NDTV, YourArticleLibrary, iTV Report, Zinnov Research and Analysis
Notes: All Figures for 2017
India-led entry to Emerging Markets
Education
Water
Power/ Energy
Agriculture
Healthcare
1.3B
287M
Total Population of the Country
Estimated Size of Indian Middle Class
Number of Small and Medium
Businesses (SMBs)
Total Number of Tech Start-ups
55M
5000+
60%
50M
76M
19%
698M
Cropped area
dependent on rain
Rural homes don’t
have power
Don’t have access to
safe drinking water
Gross enrolment ratio (GER) -
Higher education
Population at risk for
malaria
10. 10Source: Zinnov Research and Analysis
Start-up led collaboration critical to unlock the massive opportunity
Trilateral
Collaboration
A. Start-ups ⇄ Enterprises/ MNCs B. Start-ups ⇄ Government
C. Start-ups ⇄ Start-ups/ Start-up
Ecosystem
D. Start-ups ⇄ Academic
Institutions
A
B
C
Enterprises/ MNCs
Academic InstitutionsGovernment
Start-up Ecosystem
ISRAEL
INDIA
USA
4 Entities of Innovation
D
New-age Collaboration Scenarios
Government ⇄ Enterprises/
MNCs
Government ⇄ Academic
Institutions
Government ⇄ Government
Enterprises/ MNCs
⇄ Enterprises/ MNCs
Enterprises/ MNCs ⇄
Academic Institutions
Academic Institutions ⇄
Academic Institutions
Traditional Collaboration Scenarios
Legend: Traditional Collaboration New-age Collaboration
11. 11Source: NASSCOM-Zinnov Indian Start-up Ecosystem Report 2017; Notes: MAVERICKS – Evolved countries with mature start-up ecosystem; EMERGENTS – Countries where start-up ecosystem is evolving at a rapid pace aided by increasing investments, govt initiatives, etc.; ASPIRANTS – Countries where start-up
ecosystem is beginning to grow; however, lacks in terms of enablers such as investments, govt. Initiatives, etc.
Rapid acceleration of start-up ecosystems in India and Israel
Start-up Activity Index
= f [Landscape (Total Start-ups, Start-up Per Capita, Acquisitions), Unicorns Analysis, Investors Ecosystem & Funding, Advanced Tech Focus]
LowestRating
Highest RatingLowest Rating
HighestRatingGovt. Focus &
Country Specific
Indices
= f [Government
Initiatives (Govt. Policies,
Govt. Funding), Country
Specific Indices (Global
Innovation Index, Ease of
Doing Business)]
*Size of the bubble
represents the total number
of start-ups in the country
India
Israel
MAVERICKSEMERGENTSASPIRANTS
United States of America• Good progress in govt. initiatives,
requires improvement in global
indices
• 2nd highest average Unicorn valuation
led by Flipkart
• Top geo for overall start-up base and
highest number of unicorns
• Most active investor ecosystem
• Highest number of start-ups
per capita
• Highest % of Advanced Tech
start-ups
Global Start-up Comparison Framework
12. 12
Source: Economic Times, Live Mint, Reuters, University Website, OurCrowd Press Release, No Camels Website, Zinnov Research and Analysis
Notes: TIM - Technology Innovation Momentum
A. Collaboration: Start-ups ⇄ Enterprises/ MNCs
A.Enterprises/MNCsB.GovernmentC.Start-ups/Start-upEcosystemD.AcademicInstitutions
USA Enterprises/ MNCs – Start-up Collaboration INDIA Enterprises/ MNCs – Start-up Collaboration
Deep-tech
Aerospace/ Defense
Invested $ 5M in the Israeli wireless charging start-up
Acquired for chip development capabilities for $ 320M
Acquired for AI-related capabilities; 16 member team
Boeing HorizonX India Innovation Challenge in collaboration with
T-Hub in areas of autonomous, unmanned systems & AI
Acquired for their capabilities on building machine
learning systems
Social Infrastructure
Aerospace/ Defense
Targeting Israeli start-ups focused on areas such as clean-tech, water-
tech and fintech
Invested in Tel Aviv University’s TIM Fund, to drive innovation in
areas like cleantech, healthcare, pharma, etc.
Jointly pursue contracts with Israeli aerospace and
defense companies with offset obligations in India
Deep-tech
Plans to setup a technology incubator in Jerusalem in collaboration
with Hebrew University and Motorola Solutions
13. 13
Sustainable Innovation
Water Conservation
Accelerator supported by Florida government
with Israeli startup in the areas of security,
transportation, agriculture, food, etc.
Indian startup with products for waterless
bathing selected by US government
incubator, Nexus
Cybersecurity
US Department of Homeland Security and the
White House to explore partnerships with
Israel start-ups
Source: Times of India, Times of Israel, Horti Daily, Aqwise Press Release, Business Standard, Bloomberg Quint, Hindu Businessline, Zinnov Research and Analysis
Notes: NCIPM - National Centre for Integrated Pest Management, NRCG – National Research Centre for Grapes
B. Collaboration: Start-ups ⇄ Governments
USA Government – Start-up
Collaboration
ISRAEL Government – Start-up
Collaboration
Digital Citizen Services
Aerospace and Defense
Offered solution to Israeli Chamber of
Commerce that allows e-sharing of
documents for visa application
Israel Aerospace Industries that supplies
missile systems, etc. is looking to engage with
Indian start-ups in aviation and defense
INDIA Government – Start-up
Collaboration
Agricultural Technology
Sustainable Water
Bio-Bee Biological Systems collaborating with
NCIPM and NRCG for launching its
pest management products in India
Water treatment plant supplying drinking
water to city of Agra through release of
polyethylene biofilm carriers into water
Defense and Security
Providing solutions for India’s smart border
management initiative in partnership
with India’s Dynamatic Technologies
CleanLife
Products
A.Enterprises/MNCsB.GovernmentC.Start-ups/Start-upEcosystemD.AcademicInstitutions
14. 14Source: Live Mint, WhartonIndia Website, OurCrowd Press Release, Business Wire, NeuroLaunch Website, Economic Times, Your Story, Zinnov Research and Analysis
Notes: DST – Department of Science and Technology (Government of India), IIFA - Israel-India Friendship Association
C. Collaboration: Start-ups ⇄ Start-ups/ Start-up Ecosystem
Start-up Funding Innovation Challenges/
Hackathons
Incubation/ Accelerator
Collaboration
Start-up Partnerships/
Acquisitions
USA
INDIA
ISRAEL
Set up operations in Israel partnering
with Israel-India Chamber of
Commerce and IIFA
Mobileye’s accident-preventing
tech installed in over 10,000
Zoomcar vehicles
Setting up first Indo-Israeli Innovation
Accelerator in India leveraging
expertise of Tal Caltran (TC Holdings)
• Competition to promote
entrepreneurship at global level
• 2 Indian startups in top 10 startups
that take part in Israel US Trek,
a curated business trip
VC fund access for Indian
investors on OurCrowd
platform allowing investment
in Israel's startup ecosystem
Partnership to expand
Zebra’s solution to 20+
countries and 150 healthcare
organizations
Partnership for investment, innovation,
and dialogue between U.S. & Israeli
entrepreneurs across neuroscience/
neurotechnology
• Start-up challenge organized by Embassy
of Israel collaborating with DST
• 5 Indian startups awarded access to
startup incubators by the DST;
Indian winner to travel to Israel
Co-founded a $ 300M VC fund in
partnership with Ratan Tata for Indian
start-ups
Acquired to support in
building of large scale
infrastructure and services
Joint venture with ANSR Consulting to
launch incubation/ accelerator
programs in India
Start-up challenge with emerging
startups and investors organized by
Wharton School at the University of
Pennsylvania
A.Enterprises/MNCsB.GovernmentC.Start-ups/Start-upEcosystemD.AcademicInstitutions
FinitePaths
15. 15
MIT-IIT Make In India, a boot camp on social
innovation and entrepreneurship at IIT-D campus
with students from MIT for development of
prototypes and business pitches
Source: Business Insider, India Today, Business Standard, Start-up Hyderabad, Israel21c, Press Releases, University Websites
D. Collaboration: Start-ups ⇄ Academic Institutions
Collaboration with Wyss Institute for
Biologically Inspired Engineering to develop
and license lightweight exoskeleton
technologies enabling people to walk
• MIT Global Startup Workshop (2016) organized in
Hyderabad targeted at Indian start-ups
• Participants from 70 nations since inception
• Started a 10-week certificate program aimed at
entrepreneurs from the Indian startup ecosystem
• Provided guidance to 200 innovators till date
USA Academic Institutions – Start-up
Collaboration
ISRAEL Academic Institutions – Start-
up Collaboration
Partnership with International Centre for
Entrepreneurship and Technology (iCreate) of India to
jointly incubate few start-ups from both countries
Strategic partnership to establish
startup accelerator, Pinnacle
Capsula.Studio in Pune
INDIA Academic Institutions – Start-up
Collaboration
A.Enterprises/MNCsB.GovernmentC.Start-ups/Start-upEcosystemD.AcademicInstitutions
Israel Centre setup at IIM-B focused on business
relationships in domains of start-ups, innovation and
scaling companies
16. 16
In Summary
Trilateral collaboration
between USA-India-
Israel can unlock
significant potential
Rapid growth of startup
ecosystems in the 3 nations
emerges as a driving force
for collaboration
Encouraging early
signals of bilateral
collaboration to
accelerate innovation