Now, professors to turn entrepreneurs

NEW DELHI: In a move that would transform knowledge professionals into entrepreneurs, the government plans to allow professors and research scholars to set up commercial entities while being employed in academic institutes. Academics will also be allowed to invest their knowledge and skills to pick up equity stakes in companies. For instance, a scholar may offer his skills and knowledge to a company to pick up equity in it.

The model is on the lines of the ones followed at renowned institutions such as Massachusetts Institute of Technology, Stanford and University of Cambridge. The scheme would help central universities and premier institutes such as IIT, IISc, NIT and JNU attract talent.

A Cabinet note in this regard is already in circulation. Under the law, academics and institutes, including government-promoted societies, availing income-tax benefits are not permitted to pick up equity stakes in commercial ventures.

Confirming the move, an official in the ministry for science & technology said: ���The move follows the prime minister���s direction to encourage development and commercialisation of innovations.��� The government may also exempt researchers working in publicly-funded research organisations and universities from central civil services (CCS) conduct rules, enabling them to set up companies while continuing in government service.

���Private institutions such as Amity have started encouraging such moves to attract and retain talent. The proposed scheme would help government-funded institutions encash their knowledge,��� said an official in the department of Information Technology. Amity group has recently set up the Amity Innovation Incubator (AII) in Noida.

The incubator will forge tie-ups with industry. Even government institutes such as CSIR, IISc and IITs have devised mechanisms to start incubation centres to nurture start-up companies and give the students a first-hand experience in entrepreneurship.

The move is in line with the finance ministry���s proposal to allow government-promoted societies to invest in private sector equity. The proposal, mooted in 1997, could not be implemented due to strict income-tax regulations.