The debt woes of Dubai World might have thrown a spanner in the recovery efforts of global economies, following the financial crisis touched off by the collapse of Lehman Brothers last year. But this tech entrepreneur is optimistic that an emphasis on innovation and supported by its technical manpower, India can provide hope for building a stronger economy post-crisis.

“It will take a lot for the world to come out of the financial crisis and completely recover from social security disability . With investment low and cost-cutting still the order of the day, innovation must become the building block of the new era,” says Sachin Duggal, 25, who co-founded SMX iNet Global Services (a software company focusing on Internet technologies) at the age of 15, and later started Nivio (which has developed a platform for cloud computing). He went on to do his graduation even while he was overseeing his companies’ progress.

Duggal, who was awarded the Technology Pioneer Award 2009 for Nivio at the World Economic Forum earlier this year, was recently named Youth Leader of the National Computer and Electronics Committee by Assocham.

He shares his views on the importance of innovation as a tool to reshape the world economy post-crisis.

On the role of innovation in rebuilding the economy

Every crisis, economic or otherwise, gives rise to new opportunities, new growth and new direction. Innovation, and more so technological innovations, will play a key role in creating a new, balanced world. We continue to view innovation as a fancy tie when it is in fact the shirt and jacket we wear. Innovation is not about a wheel that runs fast nor is it about creating business models. It is about solving a problem. This is why successful entrepreneurs are not the ones who build business to earn money, but who aim to solve a problem; money comes gradually. Corporate social responsibility should be in our DNA not a badge on our uniform. This is innovation. It is about a paradigm shift on how we do things.

Is India prepared for a transition to the technology era with innovation as the key, from the service-centric economic environment?

In fact, India has the world’s best middle management but lacks talented professionals with leadership skills due to several reasons. With little incentive to work in the country, a large number of bright minds have moved to Europe, the US, and West Asia. What is more, our professionals are followers — they have not been trained to take the lead in creative projects but have the exceptional ability to improve existing projects. That is why we have shown remarkable progress in outsourcing IT technology, for instance, as opposed to developing IT technology in-house.

Another issue is the lack of a gender-balanced working environment. Nivio itself is working on raising the ratio of women on its staff. To accelerate the innovation process, Government support is essential to involve more women in information technology and other industries, providing a convenient fiscal and tax policy, encouraging women’s education and entrepreneurial attempts.