StartupTalky

Tag: R&D

  • Why Are Hearing Aids Expensive?

    Valued at USD 9.68 billion in 2021 and USD 10.23 billion in 2022, the global hearing aids market size is expected to grow at a CAGR of 8.1% to reach a total valuation of USD 17.68 billion by the year 2029. This is despite the industry experiencing a decline of 12.2% in 2020 as compared to 2019. The unsurprising reason for this decline was the global covid-19 pandemic and the severe lockdowns that affected business and commerce at all levels.

    The current growth experienced by the industry is attributable to a rising geriatric population and the growing number of patients requiring hearing aids as well as rising incidences of noise-induced hearing loss. According to 2020 reports by WHO (World Health Organisation) on deafness and hearing loss, approximately 1.1 billion people between the ages of 12 and 35 are at risk of suffering from hearing loss due to exposure to noise in recreational settings. The demand for cochlear implants is also rising, especially in children. Healthcare providers are also supportive of early cochlear implantation in an effort to restore hearing. All these factors are highly favorable to industry growth.

    What are Hearing Aids and How Did They Evolve?
    Types of Hearing Aids
    Reasons for High Cost
    Conclusion

    What are Hearing Aids and How Did They Evolve?

    A hearing aid is a device that helps improve hearing for an individual suffering from hearing loss. In many countries, hearing aids are classified as medical devices and regulated by respective laws. They were first created in the 17th century in the form of ear trumpets that then evolved into external hearing aids. These devices fit behind the ear and direct sounds in the front of the ear while blocking other noises. It was the invention of the telephone that started the journey of modern hearing aids. The first ever electric hearing aid was created by Miller Reese Hutchison around 1895 and was called the ‘akouphone’. It was only by the late 20th century that hearing aids began to be available commercially. Hearing aids have undergone a quick and technologically heavy evolution with the invention of carbon microphones, transmitters, digital signal processing chips (DSP), and the development of computer technology.

    Types of Hearing Aids

    There are many different types of hearing aids available in the market. Most of them, however, share similar electronic components –

    1. A microphone that picks up sound

    2. An amplifier circuit that makes the sound louder

    3. A receiver that delivers the sound into the ear canal

    4. Batteries powering the electronic parts

    The different styles of hearing aids are Behind The Ear (BTE), Receiver In the Canal (RIC), In The Ear (ITE), In The Canal (ITC), and Completely In the Canal (CIC). All these hearing aids come equipped with various features like directional microphones, noise reduction, feedback suppression, wireless connectivity, and direct audio input to help in different communicative situations.

    Types of Hearing Aids
    Types of Hearing Aids

    Reasons for High Cost

    As true as it is that hearing aids are expensive for most people, there are very real reasons behind them.

    Research & Development

    The process of making hearing aids smaller, more powerful, and more natural sounding involves an R&D process that costs hundreds of millions of dollars and the expertise of electrical engineers, sound engineers, audiologists, computer engineers, programmers, and more. This adds to the final cost of the product.

    Professional Services & Other Overheads

    Fitting hearing aids on a patient requires a trained audiologist or a hearing aid specialist. These professionals spend anywhere between three and six hours on each individual in an effort to correctly fix a hearing aid. This itself involves a certain cost apart from other overheads like staff expenses, maintaining an office, etc. which add to the final cost of the hearing aids.

    Why Hearing Aids Are So Expensive and How That’s Changing

    Product Customization

    In the ear, hearing aid devices require customization to fit in a particular ear. This takes skill, time, and effort adding to the cost.

    Product Return Policies

    Hearing aids now come with a money-back policy in case of a product return. However, such returned products cannot be sold to anyone else which means the manufacturer has to absorb the cost of that particular device. This, too, adds to the high price of hearing aids.

    Market Penetration and Size

    Currently, the market penetration and the size of the hearing aid market are comparatively small. For example, only 1% of the US population uses hearing aids. Combined with the costs involved in developing hearing aids, it is unsurprising that hearing aids are so expensive.

    Conclusion

    With technology evolving and the market poised for growth in the coming years, there are a few over-the-counter hearing aids available which are under USD 1000. However, it can still take up to a few years before hearing aids are available at a price that is comfortable for a middle-class individual to buy. Time will tell how the industry shapes in the future.

    FAQs

    What are the different styles of hearing aids?

    The different styles of hearing aids are Behind The Ear (BTE), Receiver In the Canal (RIC), In The Ear (ITE), In The Canal (ITC), and Completely In the Canal (CIC).

    What are the main reasons of high cost of hearing aids?

    Some major reasons for the high cost of hearing aids include:

    • Research and Development
    • Professional Services and other overheads
    • Product Customization
    • Product Return Policies
    • Market Penetration and Size

  • What Is Multiplier Grants Scheme? | Government’s Scheme for Supporting Startups in India

    India is a hub of untapped potential. It is also a land of commercial possibilities that can be realized with the correct tools. The Indian government realizes this talent pool and has taken various initiatives to tap, encourage and help this talent in a bid to build a strong economy.

    The government has created 50 startup programs to aid the country’s startup mission and address young entrepreneurs and small and medium enterprises.

    The Department of Electronics and Information Technology (DeitY) has established the Multiplier Grants Scheme in an effort to bridge the gap between commercialization and R&D.

    What Is Multiplier Grants Scheme?
    MGS Objectives
    MGS Implementation Process
    Who is Eligible for Multiplier Grants Scheme?
    Benefits of Multiplier Grants Scheme
    MGS and Its Terms and Conditions

    Best 10 Government Schemes for Startups in India

    What Is Multiplier Grants Scheme?

    The Multiplier Grants Scheme (MGS) intends to stimulate collaborative Research and Development between industries and academics and R&D organisations. The functional aspect of the MGS Scheme revolves around industries contributing to R&D to create items for commercialization at the institutional level. The attraction of participation comes in the form of the government contributing the same amount as given by the industry if the proposal is accepted. However, a combined proposal made by industry and R&D institutions has to be submitted for approval of financial assistance to the government.

    Value of Startup Funding Across India from 2015 to 2021
    Value of Startup Funding Across India from 2015 to 2021

    MGS Objectives

    There are a number of things that the Indian Government hopes to accomplish through this scheme:

    • Establish, nurture and deepen the ties between research institutes and the industry.
    • Encourage and focus on industry-oriented research and development to boost trade.
    • Speed up the development of indigenous goods and services.
    • Commercialization and Globalisation through collaborative work.

    MGS Implementation Process

    To make it effective and efficient MGS has made a few suggestions about its implementation process:

    • Academic or R&D institutions should submit project proposals in collaboration with industry or industry consortiums. The suggestions for such collaborative research should come from the industry or industry consortium.
    • Depending on the availability of funds, proposals could be invited for up to 3 times in a year.
    • A working group within the department will examine and evaluate the proposal and may invite additional domain experts depending on what idea is under consideration. This group will make a recommendation for appropriate budgetary support.
    • The project’s financial and technical progress will be reviewed regularly by a Project Review and Steering Group (PRSG). PRSG will also have an industry partner on the panel. This group may also recommend grant release, continuity, extension, short-closure or even a new project.
    • Specified terms and conditions will apply to the proposed scheme’s grants.

    List Of Government Schemes for Startups in India
    The Indian government is doing a lot to encourage and promote entrepreneurship. This StartupTalky post discusses some of the schemes launched to support Indian startups.
    StartupTalkyAshwini

    Who is Eligible for Multiplier Grants Scheme?

    • The idea and proposal for collaborative research should be industry-specific and presented jointly by the industry or industry consortium and R&D institution. This project proposal should be submitted to DeitY under the MGS program.
    • The application of such a proposal must be for E&IT innovation in modules, products, packages or services. Due consideration and evaluation will also be given to projects that include prototypes and packaging for commercialization.
    • The proposal’s focus must be the primary business of the industry.
    • The chosen institute must have the necessary skills and experience in the suggested field of research. The factors to be taken under consideration are:
    1. The number of professional courses offered by the institution
    2. History of prior research work and projects completed
    3. Number of papers published
    4. Any industry collaborations
    5. Institute’s existence for at least 5 years
    • The project submission should include market research on modules, products, packages and services to be created. The innovation’s output should be technically and commercially viable.
    • Some necessities that are must-haves for the industry are:
    1. Staff and technology absorption capacity.
    2. Existing or detailed plans for procurement of Infrastructure for in-house production.

    Benefits of Multiplier Grants Scheme

    The Government of India has initiated this scheme with expectations to derive benefits that will positively affect the growth of the nation and contribute immensely to the economic development of the country.

    • All projects undertaken will be focused towards market-oriented R&D.
    • Improvement in the relevance of education and training.
    • Industry will be aided towards mobilization of technology and building skills.
    • Indigenous new products will be cost-competitive and able to respond quickly to market demands.
    • Incentives and royalty sharing will contribute towards recruiting and retaining qualified personnel in academia and R&D labs.
    • Close collaboration between industry, academia and R&D may contribute to a rise in the number of entrepreneurs.

    MGS and Its Terms and Conditions

    Largely, the MGS’s focus is to improve the entrepreneurial scene in the country and to boost the country’s economy through collaborative innovation and growth. There are other terms and conditions of the scheme that ensure that its benefits and resources give the country an edge on the international stage.

    • Greater support will be given to innovations that are a breakthrough rather than incremental.
    • The innovations generated through these projects must be kept in India by the corporations.
    • The IPR must be located in India so that the country has access and control over it in the event of a national emergency.

    Conclusion

    With this level of support and encouragement from the Indian Government through the MGS Scheme, progress and growth are on a fast track and new innovations are a near-future reality. The new and budding entrepreneurs have a base support system to build innovation-led businesses that are technologically and commercially viable.

    FAQs

    What is Multiplier Grants Scheme?

    Multiplier Grant Scheme intends to stimulate collaborative Research and Development between industries and academics and R&D organisations. The functional aspect of the MGS Scheme revolves around industries contributing to R&D to create items for commercialization at the institutional level.

    How do I apply for a Multiplier Grants Scheme?

    The idea and proposal for collaborative research should be industry-specific and presented jointly by the industry or industry consortium and R&D institution. This project proposal should be submitted to the Department of Electronics and Information Technology under the MGS program.

    What are the government schemes for startups?

    Some of the most popular government schemes for startups are:

    • Pradhan Mantri Mudra Yojana (PMMY)
    • Multiplier Grants Scheme (MGS)
    • SAMRIDH Scheme
    • Startup India Seed Fund
    • The Venture Capital Assistance Scheme (VCA)
    • Stand Up India Scheme
    • High Risk – High Reward Research