International Research Conference on Innovations, Startup and Investments (ICOSTART-2019) 96 | ISBN: 9789354063343 ICOSTART 2019 Conference Proceedings www.rku.ac.in © RK University, Rajkot, India Venture Capital Support for Research and Innovation and Emerging Paradigms † *A. A. ATTARWALA, † C. S. BALASUBRAMANIAM † Kohinoor Business School, Mumbai-400 070, India *Corresponding author: dr.attarwala@gmail.com Abstract Indian Economy is now at the threshold of growth, technological progress and development wherein high inflation, stagnation and recession are experienced in the recent decade of 21st century. Increasing interest by the venture capitalists in small and new enterprises is observed in the Global Context and in India. An increased recognition and understanding has led to the development of ‘Triad’ in which overall enhancement in the relationship between Innovations, technology development in the context of trends across the Globe and India are discussed. This leads to the profitable exploitation of technology from the perspectives of the three distinct stakeholders–Viz., technology developers/Institutions, business enterprises (users) and Corporate/venture capitalists. The significance of the ‘Triad’ relationship between technology developers/Institutions, business enterprises (users) and venture capitalists and benefits derived in the economy are posed as emerging paradigms in the conclusion. Keywords: Innovation, Research & Development (R&D) Venture Capital, Private Equity. Introduction Venture Capital (VC) plays a strategic role in financing high technology and risky entrepreneurial activity in advanced economies, India and other emerging economies across the globe. VC has significant potential for financing small scale enterprises also. VC finance is often thought of as early stage financing of new and young enterprises seeking to grow rapidly. It would imply involvement of the venture capitalist in management of assisted enterprises. While the conventional VC financiers generally assist proven technologies with established markets, financing of high technology ventures with small markets which have rapid potential for growth are indicated in recent years since 2009. This paper attempts to resolve these misconceptions and understand the aspects of VC funding in the proper perspectives. Further this paper would portray the global and Indian trends in the recent decade and address the issues of VC funding in the various stages of inception, growth, maturity and exit of assisted enterprises in Indian economy. Indian Economy is now at the threshold of growth, technological progress and development having experienced the high inflation, stagnation and recession in the last decade one after another. At this juncture, the relationship between Innovation, technology development and Venture capital assumes significance. The industries (new enterprises/ users) realize that they do not have the resources within themselves to develop new technologies. As such, new enterprises seek collaboration with academic research institutions to undertake sponsored research projects which involve innovation, technology development and commercial exploitation of technologies over a period of time in a phased execution. The overall significance is to increase recognition and understanding of the phases that make up the Technological progress and growth of new enterprises in the macroeconomic context of Indian economy. The commencement of Technology & Development Corporation of India (promoted by ICICI, then, later ICICI Bank Ltd) in early 1990s marked the beginning of active venture capital type of funding for innovative and research oriented enterprises in India. Other venture finance institutions include Risk Capital and Technology Finance Corporation Ltd., Venture Capital Funds promoted by commercial banks like State Bank of India, Canara Bank etc., are also operate in India. Credit Capital Venture Fund (India) Ltd. (Joint venture of Credit Capital Finance