Bangladesh - National Innovation Agency (2023)
Agency to Innovate (a2i) Bill / Agency to Innovate Act 2023
Bangladesh
RAI-BD-NA-AIAAIXX-2023The Agency to Innovate (a2i) Act 2023 establishes a statutory national innovation agency (a2i) to promote technology-driven public service innovation, build a knowledge-based society, and transfer existing a2i programme activities to the new body. The Act sets out governance structures, powers to form companies and enter partnerships, funding and reporting obligations, and mechanisms for coordination with government ministries and international partners.
Summary
The Agency to Innovate (a2i) Act 2023 (hereafter “a2i Act”) creates a statutory national innovation agency to institutionalise the Access to Information / Aspire to Innovate programme as a permanent, autonomous vehicle for public sector innovation in Bangladesh. Passed by the Jatiya Sangsad on 5 July 2023, the law provides a framework for the agency’s governance, mandate, and functions, authorising it to design and implement technology-led programmes that simplify and modernise public service delivery, foster an innovation ecosystem, undertake research and development for public welfare, protect intellectual property for publicly-supported innovations, and engage with national and international partners. The agency is structured around a Governing Board and an Executive Committee, with the ICT Minister designated as chair of the board; the Act also contemplates a 15-member board and grant of autonomy.
To fulfil its objectives, the a2i Act confers broad operational powers, including the ability to implement projects, mobilise and manage funds, enter into contracts and partnerships, establish subsidiaries or companies where necessary to achieve statutory purposes, and provide consulting and capacity-building services to government, academic institutions, and industry. The law anticipates transfer of ongoing a2i programme activities and platforms (such as the National Portal, e‑Nothi, Muktopaath, and related digital public goods) into the new agency’s remit; this transfer has been operationalised in later SROs and rules, and the agency was formally established by government notification (SRO) in February 2024.
Governance and accountability provisions require regular reporting, audited accounts, and rule-making powers to prescribe financial management and fund operation procedures; the government subsequently issued the "Agency to Innovate (a2i) (Fund Operation and Management) Rules, 2024" to operationalise those aspects. The Act emphasises creating a policy environment for innovation, raising public awareness of technology, supporting research and intellectual property protection, and cooperating internationally to raise a2i to global standards. It also allows the agency to support private-sector engagement, though industry bodies raised concerns when the Act retained a provision allowing the agency to form companies to implement objectives — arguing this could create unfair public-private competition.
The Act does not primarily function as a sectoral regulatory statute (e.g., it does not replace cybersecurity or data protection laws) but interacts with existing and emerging digital laws and policy instruments in Bangladesh, including the Information and Communication Technology Act, the Cyber Security Act (2023), and proposed data protection legislation. Operational and compliance obligations under the Act include establishing internal governance structures, maintaining transparent fund management and audited accounts, implementing data-security measures consistent with sectoral law, and coordinating with relevant ministries, regulatory bodies and stakeholders. Penalties, liability arrangements and appeal routes are primarily administrative and financial, with detailed enforcement and operational rules left to the implementing rules and governance instruments issued under the Act. The Act therefore serves as an enabling, institutional law designed to consolidate and scale Bangladesh’s public-sector innovation and digital governance capabilities.
Full article
Read full text ↗Overview
The Agency to Innovate (a2i) Act 2023 establishes a statutory national innovation agency to institutionalise Bangladesh’s long-standing a2i (Access to Information / Aspire to Innovate) programme and to accelerate public-sector digital transformation. Passed by the Jatiya Sangsad on 5 July 2023, the Act provides the legal basis for an autonomous body governed by a Board and Executive Committee and empowered to implement technology-driven programmes, manage funds, protect IP arising from public research, and form subsidiary companies when necessary. For the official agency description and subsequent SROs implementing the Act see Agency to Innovate (a2i) — National Portal / ICT Division.
Definitions
The Act defines core terms used in the statute including "agency", "board", "executive committee", "funds", "innovation programmes", and "company" (permitted to be formed by the agency to achieve statutory objectives). Definitions align the organisational scope to public-sector innovation activities and authorise transfer of programme assets and responsibilities from previous a2i project arrangements. The Act distinguishes between policy, programmatic and commercial activities, while granting enabling powers for each; precise statutory definitions and their operational interpretation are detailed in the Act text and implementing rules.
Governance and Institutional Framework
Governance is central: the Act creates a Governing Board (15 members in the parliamentary debates and press summary) chaired by the ICT Minister, and an Executive Committee responsible for day-to-day operations. The Board’s responsibilities include approving strategy, policies, budgets, audited accounts, and major partnerships; the Executive Committee implements Board decisions and manages staff and operations. The law grants the Board rule-making authority to adopt financial management and operational rules (see the subsequent a2i notice on Fund Operation & Management Rules, 2024). The agency is to be autonomous but accountable: it must submit annual reports, audited financial statements and programme performance reports to the sponsoring ministry and to relevant parliamentary oversight committees. Where the agency forms a Company, the Board determines governance safeguards and conflict-of-interest policies to prevent unfair competition with the private sector.
Key Focus Areas
The Act’s operational mandates cover a broad set of focus areas: (1) citizen-centered digital public services and service simplification; (2) promotion of an innovation culture within government and society; (3) research, development and technology demonstration for public welfare; (4) public awareness and demand-generation for advanced technologies; (5) intellectual property protection for publicly-funded innovations; (6) capacity building for public servants and ecosystem actors; (7) partnerships with industry, academia and international organisations to elevate a2i to international standards; and (8) stewardship of flagship digital platforms initially created under the Access to Information and a2i programmes (e‑Nothi, National Portal, Muktopaath, etc.). These priorities respond to Bangladesh’s Vision 2041 and medium-term planning objectives and were highlighted in parliamentary debate and sector press coverage (see reporting in The Business Standard and The Financial Express).
Implementation Framework
Implementation is to be delivered through a mix of internal programmes, externally-funded projects, and partnerships. The Board and Executive Committee may approve project pipelines, grant programmes, procurement, and partnerships; rules issued under the Act (e.g., Fund Management Rules, 2024) provide detailed procedures for fund mobilisation, accounting, budgeting and procurement. The agency is authorised to form companies where necessary to execute contractual or commercial activities that further the agency’s objectives; this power has been controversial with private industry groups who called for revision (see Financial Express">Financial Express commentary).
Monitoring and Evaluation
Accountability mechanisms include mandatory annual reporting, independent financial audit, and performance monitoring consistent with government audit and oversight bodies. The Act empowers the Board to adopt monitoring, evaluation and learning (MEL) frameworks; implementing rules and subsequent government notifications specify reporting timelines and audit procedures. The agency’s programs are subject to normal public audit and parliamentary scrutiny; the Act anticipates coordination with IMED (Implementation, Monitoring & Evaluation Division) and other oversight entities where projects are government-funded.
Penalties, Liability, and Appeals
The Act primarily establishes administrative and financial accountability rather than criminal sanctions. It contemplates penalties and remedial measures for misuse of funds, governance failures, or contractual breaches under standard public finance rules; specific penalty amounts or criminal offences are typically left to the implementing rules or general law (e.g., public finance and anti-corruption statutes). Provisions on dispute resolution, appeals against administrative decisions and liability of board members or staff follow existing public sector norms; any staff disciplinary measures and appeals will be processed under the agency’s internal rules and applicable civil service law.
Relationship to Other Instruments
The a2i Act operates alongside and interacts with sectoral laws and regulations including the Information and Communication Technology Act, the Cyber Security Act (2023), existing data-related instruments and any future Data Protection Act. It also aligns with government policies under Vision 2041 and the 20-year Perspective Plan. The agency’s digital platforms and services must comply with sectoral regulations (telecom, cybersecurity, data protection) and coordinate with agencies such as the Bangladesh Computer Council and the Ministry of Posts, Telecommunications and Information Technology; official information on agency responsibilities and coordination is available on the agency’s site at a2i.gov.bd.
International Alignment
The Act includes an express mandate to pursue regional and international cooperation to raise a2i to global standards and to provide support to other countries where appropriate. This international orientation supports collaboration on development projects, adoption of international best practices for digital public goods, and alignment with global norms on innovation, IP protection and digital governance. The agency is positioned to work with multilateral partners (e.g., UNDP) and bilateral donors to mobilise technical assistance and financing for capacity building and cross-border initiatives.
Implementation Timeline
| Milestone | Date / Status |
|---|---|
| Parliamentary passage | 5 July 2023 (passed by voice vote). Source: The Business Standard |
| Gazette / Agency establishment (SRO) | 5 February 2024 (SRO No. 20‑Law/2024) — agency established (see official a2i page) |
| Fund Operation & Management Rules gazetted | 24 October 2024 (gazette notification; see a2i) |
Sources and References
| Source | Type |
|---|---|
| Agency to Innovate (a2i) — National Portal / ICT Division | Primary Source |
| Agency to Innovate (A2i) Bill passed in parliament — The Business Standard (UNB) | Primary Source (parliamentary reporting) |
| Coverage and industry response — The Financial Express | Secondary / Press |
Requirements for a company
What an organisation has to do under Bangladesh - National Innovation Agency (2023), at a glance. Not legal advice — the table below gives the provision and deadline for each item.
Must do
11- Establish the Governing Board and Executive Committee as per the Act.The Agency to Innovate (a2i)
- Adopt financial management and operational rules for the agency.The Governing Board of a2i
- Submit annual reports, audited financial statements, and programme performance reports.The Agency to Innovate (a2i)
- Arrange for independent financial audits of the agency's accounts.The Agency to Innovate (a2i)
- Comply with all sectoral regulations for digital platforms and services.The Agency to Innovate (a2i)
- Transfer existing a2i projects and platforms to the new agency.The Agency to Innovate (a2i)
- +5 more in the table below
Must not do
0Nothing in this category.
Should do
1- Pursue regional and international cooperation to raise a2i to global standards.The Agency to Innovate (a2i)
Should not do
0Nothing in this category.
Who must do what
The obligations under Bangladesh - National Innovation Agency (2023), most serious first. Not legal advice — verify against the official text before relying on it.
| # | Who | Requirement | By when | Where | Severity |
|---|---|---|---|---|---|
| 1 | The Agency to Innovate (a2i) | Establish the Governing Board and Executive Committee as per the Act. “the Act creates a Governing Board... and an Executive Committee responsible for day-to-day operations.” | Upon establishment | — | Critical |
| 2 | The Governing Board of a2i | Adopt financial management and operational rules for the agency. “The law grants the Board rule-making authority to adopt financial management and operational rules” | Upon establishment | — | Critical |
| 3 | The Agency to Innovate (a2i) | Submit annual reports, audited financial statements, and programme performance reports. “it must submit annual reports, audited financial statements and programme performance reports” | Annually | — | Critical |
| 4 | The Agency to Innovate (a2i) | Arrange for independent financial audits of the agency's accounts. “Accountability mechanisms include mandatory annual reporting, independent financial audit” | Annually | — | Critical |
| 5 | The Agency to Innovate (a2i) | Comply with all sectoral regulations for digital platforms and services. “The agency’s digital platforms and services must comply with sectoral regulations” | Ongoing | — | Critical |
| 6 | The Agency to Innovate (a2i) | Transfer existing a2i projects and platforms to the new agency. “Transfer existing a2i projects/platforms under direction of Cabinet/ICT Division” | Upon establishment | — | Important |
| 7 | The Governing Board of a2i | Approve strategy, policies, budgets, audited accounts, and major partnerships. “The Board’s responsibilities include approving strategy, policies, budgets, audited accounts, and major partnerships” | Ongoing | — | Important |
| 8 | The Executive Committee of a2i | Implement Board decisions and manage staff and daily operations. “the Executive Committee implements Board decisions and manages staff and operations.” | Ongoing | — | Important |
| 9 | The Governing Board of a2i | Determine governance safeguards and conflict-of-interest policies for any subsidiary companies formed. “Where the agency forms a Company, the Board determines governance safeguards and conflict-of-interest policies” | Before forming a company | — | Important |
| 10 | The Governing Board of a2i | Adopt monitoring, evaluation, and learning (MEL) frameworks. “The Act empowers the Board to adopt monitoring, evaluation and learning (MEL) frameworks” | Upon establishment | — | Important |
| 11 | The Agency to Innovate (a2i) | Coordinate with relevant government agencies and ministries. “and coordinate with agencies such as the Bangladesh Computer Council and the Ministry” | Ongoing | — | Important |
| 12 | The Agency to Innovate (a2i) | Pursue regional and international cooperation to raise a2i to global standards. “The Act includes an express mandate to pursue regional and international cooperation” | Ongoing | — | Recommended |
Related Regulations
© Regulations.AI · updated on 13-Jun-2026