Government Doctors can earn from startup now: New Government policy

However, in case the doctor opts for working full-time in the company, he or she will have to take sabbatical- maximum up to one semester per year.

This newly launched policy by the Union Ministry of Health and Family Welfare definitely gives a respite to doctors working in government setup who are not allowed to venture into any kind of private practice apart from government service in many states and are given Non-Practicing Allowance (NPA) for the same

Formulated by ICMR-DHR, in consultation with other Government Department/ Ministries/Organisations such as DPIIT, DST, WIPO, DSIR, AIIMS, IIT Delhi etc., this policy will provide the medical professionals with scope for initiating their own start-up companies and other entrepreneurial ventures.

It attempts to enable medical institutions to actively support their personnel to contribute in innovation and entrepreneurship associated activities.

Details of the ICMR/DHR Policy:

This new policy, which aims to promote start-up culture and develop an innovation-led ecosystem at the medical institutes across India, will encourage the medical professionals/doctors for pursuing entrepreneurial ventures by forming start-up companies, taking adjunct position in Company- Non-Executive Director or Scientific Advisor, PIB mentioned in its release.

Designed especially for academic medical and research institutions funded by public, private, or by not-for-profit sector, this policy refers to the growing recognition of the important role of innovation-driven academic entrepreneurship at national, state and institutional policy-making levels.

It has also been pointed out in the policy why involvement of the bio-medical researchers including clinical scientists into entrepreneurship activities is essential. These reasons include- in-depth awareness of unmet needs, familiarity with the state-of-the-art technology and the gaps, ownership of flow of care, awareness of and influence over current expert consensus, key opinion leaders and potential end users, expertise in clinical validation, long earned credibility, etc.

As per the policy, now the doctors will be permitted for undertaking inter-institutional and industry projects alone or through companies, license technologies to business entities leading to commercialisation, revenue generation for self-sustenance and societal benefit.

Besides, they can also opt for sabbatical for translational and commercialisation of their innovation through their start-up company set-up following institute's permission.

The Policy will promote interdisciplinary collaboration, innovation, technology development, skill development and foster entrepreneurship development & Make-in-India product development for societal benefit.

Roles of Doctors:

i. Role of Faculty Member/ Researchers/ Trainees as Innovators may differ from being an owner/ direct promoter, advisor, consultant or as member of the start-up. It is expected that the innovator Faculty/ Researcher(s)/ Trainee(s) would be owners /shareholders of the company/ start-up/ spin-off and may hold the position of a Non-Executive Director on Board while simultaneously working as faculty/ researcher/ trainees. Also, the Faculty Member(s) / Researcher(s)/ Trainee(s) may opt for an operational/ full time role (Scientific Advisor, Consultant, CEO, On-board Executive Director/ member etc) in the company only after taking sabbatical from the institute. The Faculty Member/ Researcher(s)/ Trainee(s) may choose one of the following options as may be applicable:

ii. He/ She may opt for sabbatical and work full-time in the company. He/ She may avail maximum leave (as sabbatical/ casual leave/unpaid leave/ earned leave) of one semester per year which may be permitted to the faculty member/ Innovator. This may be extended based upon the decision of the review committee constituted by the institute. The maximum period of 2 years at a stretch may be permitted.

iii. He/ She may dedicate a part or all of the days for consultancy work in the company start-up/ spin-off. However, under no circumstance the total number of days of non-institutional activities would exceed the institution's norms.

iv. The Innovator may act as a licensor to the business, whereby the business pays a recurring licensing fee/ royalty/ any other form of benefit sharing to the Faculty/ Researcher(s)/ Trainee(s) for the intellectual property created by the Faculty/ Researcher(s)/ Trainee(s) for the business.

v. The Innovator shall ensure that his/her duties and responsibilities conform to his/her institution's policy regarding conflict of interest and commitment. This may, amongst other things, ensure that the balance of time spent by Faculty/ Researcher(s)/ Trainee(s) amongst his/ her diverse duties and responsibilities conforms to his/her institution's policy regarding conflict of commitment.

vi. The Innovators may undertake projects (Public or Private funded) that could be conducted at the medical institute/ college, and managed through their companies. However, the institute's overhead charges shall be duly paid as per the applicable norms and standards of the institution concerned.

vii. The Innovator may spend up to 20% of their allocated time on research linking entrepreneurship. The equity of up to 20%/ similar proportion of stake may be taken by the research team of the institute. If the equity is being taken by faculty (research teams)- the time of faculty may be considered to be 'offduty/leave without pay'. If the equity is being transferred to the research institute, the research time of up to 20% may be taken as on duty (in line with the substantial interest of Tax Law).

viii. The Bank account of the innovationdriven spin-off or start-up maybe kept separate and maybe audited from time-to-time, by a certified chartered accountant.

ix. Any honorarium/overhead obtained as a result of consultant for engaging in a company-in incubator or sponsored project of an innovation will be considered as income and the percentage of income bifurcation needs to be made as an institute/ college share and consultant share for such remunerations.

x. Financial, non-financial disclosure, collaborative research and any other necessary agreements need to be signed as per the existing institute norms and standards of practice. In case the faculty is involved in a clinical validation of bio-medical research and innovation in start-up, prior ethics committee (EC) approval may be obtained from the institute. Any scientific presentation coming out of such initiative may have the clear disclosure about the faculty's financial interest in such innovations.

xi. Any financial assistance (in form of salary, honorarium, or consultancy or licensing fee) paid to the founding members of the company may be considered entirely as income of the involved faculty members during the incubation period within the campus. Once the company moves out of the institute, the faculty member may be permitted to take sabbatical and work with the company as per the existing rules of the institute. He/she may also receive financial assistance in the form of consultancy fee as per the applicable rules of the institute.

The objectives of this policy are-

(i) to encourage medical institutes for creating enabling policies and ecosystem for the promotion of innovation and entrepreneurship development by its faculty/students/staff

(ii) to promote Biomedical innovations and Entrepreneurship by Medical Professionals, Scientists and Technologists to foster development of unmet need driven, socially impactful Technologies/ Products for societal benefit.

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Scopes of the Policy:

The scope of the policy is as follows:

1. The Policy is applicable to Medical/ Paramedical Colleges/Institutes, Biomedical Research and Academic Institutions;(Collectively referred to as Institutes and Institute singularly) and;

2. All Medical Professionals and Scientists at Medical, Dental, Paramedical Institutes/ Colleges and other Biomedical Research Institutions which includes: (i) Academic staff (professors, lecturers, assistant lecturers) (ii) Medical residents, Doctoral trainees and research/ technical assistants (iii) paramedical staff (iv) incubator or support staff or (v) any other short term or long term trainee or employee of the said institutions who may be engaged in biomedical innovations, technology access and utilization, entrepreneurship, health-tech startups/ spin-offs or related activities (Collectively referred to as Innovators and Innovator singularly).

As per the policy-

• The doctors will also be permitted to undertake inter-institutional and industry projects alone or through companies, license technologies to business entities leading to commercialisation, revenue generation for self-sustenance and societal benefit.

• The medical professionals will also be permitted to take-up sabbatical for translational and commercialisation of their innovation through their start-up company set-up following institute's permission.

• The Policy will promote interdisciplinary collaboration, innovation, technology development, skill development and foster entrepreneurship development & Make-in-India product development for societal benefit.

Duration:

"The start-up company established by the faculty or staff of the institute may be allowed to operate up to the duration of ~ 3 years within the Institute. After 3 years, it may be spinned off from the OLIVE premises. However, the faculty may be allowed to maintain equity in the company functioning outside the premises also. An extension beyond the initial housing period (further up to three years) may be granted to the company upon request to the OLIVE, based on the merits of the business opportunity it holds," mentioned the policy document.

Directions to the Institutes:

This new ICMR policy has also outlines certain duties and responsibilities assigned to the medical institutes.

(1) The Institutes shall establish a holistic innovation promoting system that (a) recognises what motivates each of the relevant stakeholders and (b) enables the stakeholders to receive the specific benefit they expect in exchange for their contribution to the innovation process.

(2) Investment in Research & Development and Entrepreneurship from private sector shall be encouraged through established Public- Private Partnership (PPP) process such as Collaboration/ contract research mechanism.

(3) The Institutes shall create an ecosystem for innovation including incubation centre and other initiatives for creation and transfer of knowledge.

(4) The Head of the Institute shall develop a suitable mechanism or a platform to utilise various schemes of the Government of India like Start up India, Start-Ups Intellectual Property Protection (SIPP) schemes by Department for Promotion of Industry and Internal Trade (DPIIT), Atal Innovation Mission (AIM), Skill India etc. implemented by various agencies. The Head of the institute shall endeavour to enable the faculty members to balance the academic and patient care responsibilities along with research and innovation activities.

(5) Institute shall improve utilisation of Government and Private Sector schemes that support greater, better and purposeful protection, use and leveraging of IP created by faculty, scientists, researchers and trainees in academic medical institutions and bio-medical research institutions in India. The process for grant application and grant utilisation shall be simplified and standardized.

(6) The institute shall encourage and prioritise participation and involvement of its personnel in entrepreneurship and enable formation of a legal entity at the institute, if required.

(7) The Institutes shall be encouraged to create suitable mechanisms and also set-aside dedicated funds to reward their Faculty/Student/Staff Innovators.

(8) The Institutes shall be encouraged to develop and implement inter-disciplinary course curriculum (for e.g. MD-PhD or MEPhD or MBBS-MTech etc.) to foster interdisciplinary innovations.

(9) The Institutes shall be encouraged to create suitable policy and earmark funds for facilitating pre-clinical and clinical evaluation of Technologies/biomedical products.

(10) The medical colleges and institutes shall be encouraged for setting up Office of Licensing of Innovation Ventureship & Enterprise (OLIVE).

Acknowledging research and innovation as primary pillars that propel any country towards growth and development in a competitive global canvas, Dr Mansukh Mandaviya said, "It is time that India also demonstrates its strength and mettle through research, entrepreneurship and innovative initiatives in the health sector, including medical devices. Under the leadership and guidance of Hon'ble Prime Minister, India has taken several notable steps towards self reliance and self-sustenance, especially in vaccine development during the pandemic period. I am very hopeful that this Policy of DHR-ICMR unveiled today will motivate, incentivise and give a fillip to all the stakeholders. It will ensure multi-disciplinary collaboration, promote start-up culture and develop an innovation led ecosystem at the medical institutes across the country by promoting Make-in India, Start-Up-India and Atmanirbhar Bharat initiatives of the Government of India."

"Our medical workforce comprising of doctors, paramedical staff, technicians have a wealth of knowledge based on their experience of working with fundamental problems at the cutting edge level. They also have ideas for innovations. Till now, these could not get a policy framework and platform for further growth. This Policy will connect the industry, technical institutions and promote commercial translation of these ideas and innovations in the health sector. When our philosophy of Seva Bhaav is clubbed with medical expertise and entrepreneurship, I am confident that this will develop a vibrant ecosystem in India, which will not only benefit our citizens but the society and India as a whole," further stated the Union Minister.

Dr. Bharti Pravin Pawar, Minister of State for Health and Family Welfare appreciated the initiative and congratulated DHR and ICMR for bringing out this very important policy document and stated "I strongly believe that this Policy will create innovation and entrepreneurship ecosystem at Medical Colleges/Institutes and will create a pipeline of healthcare innovations including medical device and diagnostic products in India. Wider dissemination and implementation of this policy will catalyze biomedical innovation & entrepreneurship in the country in line with Hon'ble Prime Minister's vision of New India." She added that doctors and medical professionals are ideally positioned to be on the forefront of innovation and research.

Prof. Balram Bharagava, Secretary, DHR and Director General, ICMR said "The ICMR/DHR policy on Biomedical Innovation and Entrepreneurship for Medical Professionals is a game changer. It will enable medical institutions to actively support their personnel in contributing towards the innovation and entrepreneurial ventures with the ultimate goal of positively impacting human-health & well-being. It resonates with the motto of our Hon'ble Prime Minister to "Innovate, Patent, Produce and Prosper" I am very hopeful that this policy will bring about a paradigm shift in the innovation and entrepreneurship culture in the country and will have far reaching impact on all the medical colleges and institutes across the country."

Click here to view the ICMR/DHR policy.

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