This really is a 'better idea,' in my opinion.
Apparently, developing countries envy India's "prestigious higher education system" - the only problem is that it doesn't produce competent graduates.
Now, here's a radical idea for you: If something hasn't worked before, try something else!
An outfit called End Poverty in South Asia has a blog post titled "Innovation in India." It's short piece, and looks like a good introduction - although certainly from the point of view of the author.
There's a link there, to a paper done by Devesh Kapur and Pratap Bhanu Mehta about India's higher education system (dated July 2, 2007). They call it "Indian Higher Education Reform: From Half-Baked Socialism to Half-Baked Capitalism." I haven't read all 66 pages, but a quick glance suggests that the authors did their homework.
Then, there's the National Innovation Foundation / in support of grassroots innovations. "The Department of Science and Technology established National Innovation Foundation (NIF) of India in February, 2000, with the main goal of providing institutional support in scouting, spawning, sustaining and scaling up grassroots green innovations and helping their transition to self supporting activities."
More ideas - good, dubious, and strange - at "Better Ideas From ... "
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