Innovation does not just happen

Innovation is the buzzword in Nepal after Magsaysay-winner Mahabir Pun was appointed to head the RSP government’s newly created Ministry of Science, Technology and Innovation.

Formerly head of the National Innovation Centre, Pun served as Education Minister in the interim government. He is continuing his unconventional style of working by posting videos on social media of cooking inside his office in Singha Darbar and sleeping in the central government secretariat.

But that is not the only reason that these are interesting times in Nepal for anyone doing research, working on innovative ideas, or building something of their own within the country. Pun has stressed that research and innovation should directly impact the daily lives of Nepalis.

After decades of universities working as degree factories, rote learning that blunted the minds of discerning students, corruption driving away talent, the country finally has a government keen on making changes.

Minister Pun’s appointment has signalled that time is ripe for conversations on matters of innovation. Even beyond the new ministry, there is much to be hopeful about.

There are new centres of learning like the Madan Bhandari University of Science and Technology in Chitlang, or the University of Nepal guided by leadership free from political interference and a vision to redefine Nepal’s higher education.

There are also independent research centres already setting new standards for what can be done in Nepal. There is global recognition of Nepali talent in innovative technology.

Nepalis are also publishing impactful research, founding startups, and occupying influential positions in academia and industry. These are all encouraging developments, and young Nepalis are sitting up to take notice.

For decades, students felt trapped between two less-than-ideal choices: remain in Nepal and sacrifice opportunities, or leave the country and sacrifice the chance to contribute to the nation’s future.

Increasingly, that no longer seems to be the case. Technology has played a role in this shift. Research collaborations now span continents, entrepreneurs can build from almost anywhere.

Scientists routinely work across borders through virtual labs and international partnerships. As a result, those leaving to study or work overseas have started seeing their departure as an investment in skills, knowledge, and networks that can ultimately benefit Nepal.

INNOVATIVE INVESTMENT

These trends are what the Ministry of Innovation needs to invest in. Much of the current discussion is centred on calls for Nepal to raise its expenditure to levels seen in more developed economies. Far less attention has been paid to a more basic question: does Nepal currently possess the capacity to reap returns on that investment?

This capacity is built through strong interactions between institutions, like including universities that produce high-quality research, firms willing to commercialise that new knowledge, and policies rewarding experimentation and risk-taking. Without these interactions, government funding risks becoming appropriation without any lasting impact.

Equally central to building such capacity are individuals who can question established knowledge and connect ideas across disciplines. Such skills are cultivated in the classroom, long before students enter labs or start companies.

For decades, Nepali education has continued to prioritise recall over inquiry, and conformity over mould-breaking. The responsibility to change this rests first with the education ministry. Educators deserve greater recognition, investment, and opportunities for professional development because they shape the country’s innovation floor.

The content they teach, and how they teach it, determines how future generations approach problem solving. But even when early-stage ideas and novel research do emerge, there need to be investors and supporting institutions — such as venture capital firms and incubators — willing to back them and engage with their inherent risk–reward dynamics.

Given weak private investment prospects with commercial mandates to support startups, government policy can play a role to shape investor-startup interactions.

In South Korea, for example, this takes the form of targeted initiatives such as its tech incubator program for startups (TIPS), where a private venture capital firm or accelerator investing in a promising pitch triggers a matching contribution from the government.

Yet even with world-class universities, mature industries, competitive firms, and one of the highest investments in the world, Korea continues to grapple with an aversion to entrepreneurial risk and a strong preference for stable employment.

This is a lesson important for Nepal. Creating an innovation ecosystem requires researchers and entrepreneurs to feel willing to take risks, pursue unconventional ideas, and fail freely.

In a developing context, focusing on relatable, everyday problems for which solutions are visibly needed can be an exercise in building broader social tolerance for such experimentation.

Economists describe these as market-creating innovations: products and services that are simple, affordable and accessible enough to serve people who were previously excluded. Such innovations improve lives while creating industries, generating employment, attracting investment and expanding the productive capacity of the economy itself.

Nepal has no shortage of areas needing precisely this kind of innovation. We need technologies that strengthen agricultural resilience and improve disaster forecasting for communities living under constant risk. Affordable water purification systems, renewable energy solutions, and accessible community health technologies are also largely untapped opportunities.

Also needed are pathways for the Nepali diaspora — scientists, entrepreneurs, and investors who have worked in leading innovation ecosystems — to collaborate and build ventures without prohibitive bureaucratic barriers.

For decades, Nepal’s economy has depended heavily on remittances sent home by millions of Nepalis working abroad. But in 2025 the annual IT service export surpassed $1 billion, proving there is a critical mass of globally competitive technical talent here. Whether we can transition from an economy that exports labour to one that exports ideas and technologies is the question.

Last year’s youth-led political movement brought Nepal to this inflection point. What should come next is a different, but no less consequential movement to make innovation, research and knowledge creation central to the country’s future.

The authors are undergraduates studying biomedical engineering at the Hong Kong Polytechnic University.