Internationalisation of R&D and Global Nature of Innovation: Emerging Trends in India
By V.V. Krishna and Sujit Bhattacharya
ARI Working Paper Series, WPS 123
Published by: Asia Research Institute, National University of Singapore
The corporate model of R&D pursued within home country locations of the corporate firm is fast eroding. Important magazines such as The Economist (3 March 2007, p69) has begun to talk about, 'The rise and fall of corporate R&D'. The internet and telecommunication revolutions have dismantled geographical barriers creating a new innovation potential at different levels of value chain which are now dispersed at different locations. The Asian region has come to occupy a significant space in these trends. India and China are becoming major locations for off-shore R&D and innovation affiliations. The last decade witnessed two trends in the pattern of global science and technology systems in the Indian context. The first concerns the internationalisation of R&D and the second the increasingly global nature of innovation.
This paper explores three main issues in the Indian context. Firstly, it explores the significant changes in the macro economic and science and technology policies which have propelled changes during the last decade and a half. Secondly, through various indicators the paper maps the growth of internationalization of R&D and global nature of innovation. Thirdly, the paper explores the context of innovation to see whether these trends signify a 'new international division of labor' between North and South or whether there is a significant transformation underway for global nature of innovation.
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