MSME – Innovative (Incubation, IPR and Design)


The MSME Innovative Scheme will merge the Incubation, Design, and IPR Schemes of the Ministry of MSME. These three schemes will operate as separate verticals with connections and be integrated into a singular formulation for higher efficiency and synergy. The MSME Innovative Scheme aims to promote and encourage innovative activities, creating awareness among MSMEs about India’s innovation and motivating them to become champions. This new concept will combine innovation in incubation, design intervention, and IPR protection in a single approach. As a hub for innovation activities, it will guide and facilitate the development of ideas into viable business propositions, benefiting society directly and marketing them successfully.

Objective of the MSME Innovative scheme

  1. Promote innovation throughout the value chain from idea generation to innovative applications using incubation and design interventions.
  2. Provide appropriate facilities and support for the development of concepts, design competitiveness, and protection & commercialization of intellectual property in the MSME sector.
  3. Encourage a culture of innovation and creative problem-solving through knowledge sharing and collaboration among industry, academia, government institutions, and research laboratories.
  4. Act as a link between industrial/academic leaders and innovators to encourage new product development and hand-holding.
  5. Focus on developing affordable innovations that are commercially viable, sustainable, and benefit a large number of people.

Scheme eligibility:

  • Incubation: MSMEs, individuals, and students seeking to develop their innovative ideas can apply through registered HIs.
  • Design: The beneficiary unit(s) must be registered micro, small or medium enterprises as per the definition in the MSMED Act and should have a valid UAM or Udyam Registration.
  • IPR: Manufacturing MSMEs with UAM/UDYAM Registration.

Nature Of Assistance

Incubation: A financial assistance of up to INR 15 lakh per idea will be provided for developing and nurturing ideas, along with assistance for procurement and installation of relevant plant and machinery, up to a maximum of INR 1 crore.

• Design Project: For approved design projects, 75% of the total project cost (up to a maximum of INR 40 lakh) will be contributed by the government for Micro enterprises, and 60% for Small & Medium enterprises. The remaining project cost will be borne by MSMEs and deposited to the IA.

• Student Project: The government will contribute 75% of the total project cost (up to a maximum of INR 2.5 lakhs) for approved student projects.

IPR: An IPFC will receive a grant of up to INR 1 crore in milestone-based (three or more) installments.

The IPR component provides reimbursement for registration of Patent, Trademark, Geographical Indications (G.I.), and Design. The maximum financial assistance for each item is as follows:

  1. Foreign Patent: Rs. 5.00 lakh
  2. Domestic Patent: Rs. 1.00 lakh
  3. GI Registration: Rs. 2.00 lakh
  4. Design Registration: Rs. 0.15 lakh
  5. Trademark: Rs. 0.10 lakh

Eligibility and Applicability

The eligibility and applicability criteria are for MSMEs with UAM/Udyam Registration.

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