Enhancing Indo-German SME Innovation and Technology Cooperation

Small and Medium-sized Enterprises (SMEs) are considered the backbone of national economies and engines of economic growth. Agile and driven by entrepreneurship, innovation, and their ability to navigate turbulent times, SMEs have shown resilience and contributed significantly to national economies. However, in international technology collaborations, they often face structural deficits, such as limited personnel capacity and restricted access to innovation and research networks abroad. In the Indo-German context, various short-term support mechanisms exist, but there is a need for sustained platforms and long-term initiatives to enhance SME-to-SME and SME-to-academia collaborations internationally.

In 2022, DWIH New Delhi and Fraunhofer Office India launched an exploratory project to identify challenges in Indo-German SME collaboration in technology and research. Aimed at supporting SMEs in both countries and Indian research institutions engaged in R&D, the initiative gathered expert insights from Germany and India for several discussions. These were validated through a stakeholder dialogue in Berlin and New Delhi, forming the basis for this paper.

This paper provides an overview of the innovation and research ecosystems in both countries, emphasizing the role of SMEs. It also outlines funding mechanisms for technology transfer and industry–academia collaboration and presents key recommendations from the stakeholder dialogue to help shape a framework for Indo-German technology cooperation.