Archive · 16 Sep 2026
Why India Needs Real Innovation Measures Beyond Unicorn Valuations
India often judges successful startups by whether investors value them at more than $1 billion, making them unicorns.
The article says this number does not show everything a company has achieved.
For example, Skyroot Aerospace helped India launch a private rocket into orbit.
The author wants India to measure things such as patents, jobs, exports, technology, and service to smaller cities.
The author also wants the government to publish how much innovation money it has promised and how much it has actually delivered.
A second index would track this flow of money and its results.
Government agencies could help startups grow by becoming early customers of their products.
Together, these measures would show whether innovation is building lasting national capabilities rather than only producing high valuations.
Skyroot Aerospace became India’s first spacetech unicorn in May 2026 and reached orbit with its Vikram-1 rocket on 18 July.
The article argues that unicorn counts measure funding-round valuations, not jobs, patents, exports, or technological capabilities.
It proposes a National Innovation Index ranking recognised startups on innovation, inclusion, employment, exports, intellectual property, and national priorities.
It also calls for a National Transmission Index to track whether government innovation funding is actually disbursed and produces results.
The author says government procurement from capable Indian startups could connect public funding, company growth, jobs, intellectual property, and exports.
- Who
- Indian recognised startups, the Indian government, and the author, Pranav Pai, a TiE charter member.
- What
- An opinion proposal for a National Innovation Index and a National Transmission Index to measure startup outcomes and government innovation funding.
- When
- Skyroot Aerospace became a unicorn in May 2026 and reached orbit on 18 July; the article also refers to funding decisions in July 2026.
- Where
- India, including Skyroot’s launch from Sriharikota.
- Why
- The author argues that unicorn valuations do not adequately measure innovation, inclusive growth, or whether public funding reaches companies and laboratories.
Valuation-Led Measurement
Outcome-Led Measurement
What counts as success
Valuation-Led Measurement
Unicorn status and startup valuation are widely used as quick indicators of entrepreneurial success.
Outcome-Led Measurement
The article argues that valuation measures an investor mark-up at one funding round and should be supplemented by jobs, patents, exports, inclusion, and technological capability.
How to assess public funding
Valuation-Led Measurement
Announced government funding can be presented as evidence of support for innovation.
Outcome-Led Measurement
The author says support should be judged by how much money is disbursed, to whom, and what results it produces.
How startups scale
Valuation-Led Measurement
Grants and investment can help companies begin developing products and capabilities.
Outcome-Led Measurement
The article argues that durable government demand and procurement are needed to turn those capabilities into revenue and scale.
- Skyroot milestone
- Skyroot Aerospace became India’s first spacetech unicorn in May 2026 and reached orbit with Vikram-1 on 18 July.
- Recognised startups
- India has 240,000 recognised startups, according to the article.
- Startup jobs
- Recognised startups account for nearly 2.4 million jobs.
- Proposed startup measure
- The National Innovation Index would track patents, intellectual property, deep technology, jobs, exports, women’s employment, and reach across districts.
- Proposed funding measure
- The National Transmission Index would report monthly disbursements against allocations and outcomes against targets.
- Innovation funding
- India has assembled nearly ₹5 trillion, described as about $53 billion, in long-term innovation capital commitments.
- RDI implementation
- The Research, Development and Innovation Scheme had ₹20,000 crore allocated for the current financial year, while two government fund managers were operational by early 2026.