This article discusses foreign R&D centers in India and whether they have a positive impact. It notes that as developed countries face resource scarcity and higher costs, multinational corporations are increasingly locating R&D centers in developing countries like India and China to access skilled labor and scientific infrastructure at lower costs. The article reviews literature on the potential benefits of foreign R&D centers for host countries, including knowledge spillovers, but notes there has been little rigorous study of the actual impacts in India. It argues for a detailed investigation of interactions between foreign and domestic R&D in India to understand the positive effects and help develop policies to maximize benefits.
Innovation Policies and Places in China Korea Taiwan JapanBurak Oğuz
The document discusses innovation policies and clusters in China. It provides details on China's development zones, regional clusters, and policies to encourage technology development. Key points include China establishing 53 high-tech development zones, the growth of industries in regions like Shenzhen and the Yangtze River Delta, and China's focus on building competence through education, attracting FDI, and reinforcing technology development through national and regional policies.
Understanding Cost and Talent CharacteristicsZinnov
The document discusses trends in global technology talent and costs. It notes a "Gini effect" where pay can widely vary for similar roles in emerging markets. Additionally, expectations of constant pay raises in Asia have led to a "Goldilocks syndrome." The document also examines the growth of tier 2 tech hubs in the US and potential talent impacts from the European debt crisis.
Adapt to Survive: India Losing Money Over Not Connecting Right Talent with th...LinkedIn Talent Solutions
This document summarizes a global study by PwC on how better alignment between talent and opportunities can drive economic growth. Some key findings include:
1) Markets with more adaptable talent are more efficient and productive, unlocking up to $130 billion in additional productivity.
2) As talent becomes more adaptable, it can help narrow the worldwide skills gap, leading to better economic performance as half of CEOs intend to increase headcount but worry about key skill availability.
3) Online professional networks give organizations access to more talent pools and "passive candidates," while also allowing individuals to more easily explore opportunities, leading to better hiring outcomes.
The document discusses how adaptability of talent can drive economic growth. Some key findings:
- Markets with more adaptable talent are more efficient and productive, resulting in up to $130 billion in additional productivity across 11 countries studied. Better alignment of talent and opportunities leads to higher returns.
- With increased adaptability, the skills gap facing employers will narrow. Currently, 63% of CEOs globally worry about availability of key skills while unemployment rises.
- Less adaptable talent markets result in higher recruitment and onboarding costs as poorly matched candidates are hired. This costs the global economy $19.8 billion annually in the countries studied.
Asia Corporate Strategy Assessment – 10 Trends in Corporate Strategic Plannin...Team Finland Future Watch
The document discusses 10 trends in corporate strategic planning for the Asian region. It summarizes that companies are organizing for regional integration through agreements like the ASEAN Economic Community, continuing a "China Plus One" strategy of diversifying investments beyond China into other Asian markets to manage risks, and leveraging Asia as a source of innovation by establishing research and development centers in the region.
1. Russia has a large, highly educated workforce of scientists, engineers, and technicians that represent an untapped strategic resource for the country.
2. During the Soviet era, scientists were highly innovative due to limited computing power but unlimited state funding, which forced them to develop creative solutions.
3. While some companies are utilizing Russian talent, the technology sector remains isolated. Combining Western business skills with Russian innovation could produce disruptive technologies and benefit all parties.
Business Structure of Indigenous Firms in the Nigerian Construction IndustryWaqas Tariq
The roles of contracting firms in construction industry cannot be overemphasized and their structure is a function of performance and output in the industry. Sets of questionnaire were administered on construction professionals working within the contracting firms. Data obtained was analyzed using descriptive statistic (mean ranking). The study found out that the firms are medium-size firms, engaged in building construction and cannot finance projects independently prior to client financial contribution (mobilization fee). Their activities are limited to their locality and rarely get bank loans. They do not have share capital and therefore could not fund project from company capital base.
Innovation Policies and Places in China Korea Taiwan JapanBurak Oğuz
The document discusses innovation policies and clusters in China. It provides details on China's development zones, regional clusters, and policies to encourage technology development. Key points include China establishing 53 high-tech development zones, the growth of industries in regions like Shenzhen and the Yangtze River Delta, and China's focus on building competence through education, attracting FDI, and reinforcing technology development through national and regional policies.
Understanding Cost and Talent CharacteristicsZinnov
The document discusses trends in global technology talent and costs. It notes a "Gini effect" where pay can widely vary for similar roles in emerging markets. Additionally, expectations of constant pay raises in Asia have led to a "Goldilocks syndrome." The document also examines the growth of tier 2 tech hubs in the US and potential talent impacts from the European debt crisis.
Adapt to Survive: India Losing Money Over Not Connecting Right Talent with th...LinkedIn Talent Solutions
This document summarizes a global study by PwC on how better alignment between talent and opportunities can drive economic growth. Some key findings include:
1) Markets with more adaptable talent are more efficient and productive, unlocking up to $130 billion in additional productivity.
2) As talent becomes more adaptable, it can help narrow the worldwide skills gap, leading to better economic performance as half of CEOs intend to increase headcount but worry about key skill availability.
3) Online professional networks give organizations access to more talent pools and "passive candidates," while also allowing individuals to more easily explore opportunities, leading to better hiring outcomes.
The document discusses how adaptability of talent can drive economic growth. Some key findings:
- Markets with more adaptable talent are more efficient and productive, resulting in up to $130 billion in additional productivity across 11 countries studied. Better alignment of talent and opportunities leads to higher returns.
- With increased adaptability, the skills gap facing employers will narrow. Currently, 63% of CEOs globally worry about availability of key skills while unemployment rises.
- Less adaptable talent markets result in higher recruitment and onboarding costs as poorly matched candidates are hired. This costs the global economy $19.8 billion annually in the countries studied.
Asia Corporate Strategy Assessment – 10 Trends in Corporate Strategic Plannin...Team Finland Future Watch
The document discusses 10 trends in corporate strategic planning for the Asian region. It summarizes that companies are organizing for regional integration through agreements like the ASEAN Economic Community, continuing a "China Plus One" strategy of diversifying investments beyond China into other Asian markets to manage risks, and leveraging Asia as a source of innovation by establishing research and development centers in the region.
1. Russia has a large, highly educated workforce of scientists, engineers, and technicians that represent an untapped strategic resource for the country.
2. During the Soviet era, scientists were highly innovative due to limited computing power but unlimited state funding, which forced them to develop creative solutions.
3. While some companies are utilizing Russian talent, the technology sector remains isolated. Combining Western business skills with Russian innovation could produce disruptive technologies and benefit all parties.
Business Structure of Indigenous Firms in the Nigerian Construction IndustryWaqas Tariq
The roles of contracting firms in construction industry cannot be overemphasized and their structure is a function of performance and output in the industry. Sets of questionnaire were administered on construction professionals working within the contracting firms. Data obtained was analyzed using descriptive statistic (mean ranking). The study found out that the firms are medium-size firms, engaged in building construction and cannot finance projects independently prior to client financial contribution (mobilization fee). Their activities are limited to their locality and rarely get bank loans. They do not have share capital and therefore could not fund project from company capital base.
IRJET- Exploration of Business Opportunities for an Entrepreneur in Real Esta...IRJET Journal
This document discusses exploring business opportunities for an entrepreneur in the real estate sector of Satara, India. It begins with an abstract on the scope for expansion in India's construction industry. It then outlines objectives to study the existing scenario in Satara, identify critical success factors, and explore opportunities and threats. A literature review and SWOT analysis were conducted through surveys of industry professionals. The SWOT analysis identified strengths like agricultural output and climate, as well as weaknesses like lack of training facilities. Opportunities included development of commercial and industrial areas. Threats included market instability and changes in government policy. In conclusion, it was determined that entrepreneurs must innovate, listen to customers, watch competitors, and consider industry trends to identify
This document provides an overview of the global challenges in recruitment and offers 10 tips for effective global recruitment. It discusses how talent markets are shifting globally due to demographic and economic changes. Skills shortages are a major issue for many countries as the workforce declines and demand for skills increases. Recruiting talent internationally presents challenges related to immigration policies, cultural differences, varying HR procedures, and ensuring compliance with regulations in multiple countries. Global recruitment requires developing a long term strategy, thorough market research, partnerships with local experts, and a focus on cultural intelligence, branding and screening candidates appropriately.
The education technology startup market has grown dramatically in recent years, with $5.065 billion raised from 2010 to mid-2015. However, the market remains challenging due to difficulties in determining an effective revenue model, fluctuating institutional budgets, and complex buying decisions. While consolidation and a focus on viable models may lead to maturation, the market is still poised to significantly lower the price of and expand access to education through technological disruption.
This document discusses a study on business clustering and the emergence of new businesses in Nigeria. The study examined 12,104 sellers of building materials in Akwa Ibom State and Cross Rivers State using questionnaires. The findings showed that business clustering has a remarkable effect on the formation of new businesses in Nigeria by generating economic multiplier effects that can lead to socio-economic transformation and the transfer of technology and innovation. It was recommended that the government invest in industrial sectors and relax import laws to encourage business clustering and positively impact production.
Daniel Sotelsek www.danielsotelsek.com
This paper examines two sources of global knowledge spillovers: foreign direct investments and trade. Empirical evidence demonstrates that foreign direct investment and trade can contribute to overall domestic productivity growth only when the technology gap between domestic and foreign firms is not too large and when a sufficient absorptive capacity is available in domestic firms. The paper proposes the terms research and development and labor quality to capture the innovative and absorptive capacity of the country. The spillover effects in productivity are analyzed using a stochastic frontier approach. This productivity (in terms of total factor productivity) is decomposed using a generalized Malmquist output oriented index, in order to evaluate the specific effect in technical change, technical efficiency change, and scale efficiency change. Using country-level data for 16 Latin American countries for 1996-2006, the empirical analysis shows positive productivity spillovers from foreign direct investment and trade only when the country has absorptive capacity in terms of research and development. Foreign direct investment and trade spillovers are found to be positive and significant for scale efficiency change and total productivity factor change.
Issues Facing Industrial Manufacturers: Staking a Claim in Emerging Markets BurCom Consulting Ltd.
Manufacturers face challenges when entering emerging markets including intense competition, international business risks, and a shortage of skilled labor. Solutions include building or buying local production, improving returns on capital equipment, and using foreign R&D to create new products for those markets. Success requires winning the war for talent through strategic recruiting and reshoring some production.
Israel is recognized as a global leader in innovation and high-tech due to its educated workforce, strong infrastructure, and business-friendly environment. The economy has grown steadily in recent years and foreign investment plays an important role. Major companies like Microsoft and Intel have research centers in Israel due to the talent, scientific research, and supportive government. The minister is confident the economy will continue growing while maintaining its position as a top destination for foreign investment and technology development.
Make in India can be a path breaking campaign provided it is grounded by right policy measures and innovation ecosystem. Technology has a pivotal role in this and the efforts of the nation in promoting technological innovations have so far yielded limited success. Technology transfer requires easing FDI limits and other fiscal incentives. However, the past experience of technology transfers in military indicated failure to deliver by foreign partners. Liberalization as well as stringent conditions is hence important to make technology transfer through collaborations. Indian government has announced some fiscal incentives and welcomed collaborations. In the light of this, the need for developing competences for technology absorption has gained attention. The paper presents technology transfer and absorption issues for the success of Make in India.
Jnu forum for mutual learning lecture on 22nd September 2012Swapan Patra
This document discusses the globalization of research and development (R&D) by multinational corporations, with a focus on trends among foreign ICT and biotechnology firms in India and China. It outlines the increasing internationalization and "triadization" of R&D as firms establish more R&D centers abroad. The document presents research questions on the motivations, structures, and linkages of foreign R&D units in India and China. It proposes examining input and output indicators like expenditures, personnel, publications, and patents over time. The methodology involves a literature review and case studies of firms in key sectors.
This document discusses research and development (R&D) expenditures and activities around the world. It notes that the United States spends the most on R&D, followed by China, Japan, Germany, and South Korea. R&D is important for developing new products, gaining intellectual property, and remaining competitive. The document also provides suggestions for how India can improve its R&D efforts, such as by establishing more school and university research departments, focusing funding on key issues, and improving international collaboration.
Vibrant Gujarat Summit on Innovation & Research developmentVibrant Gujarat
This document provides an overview of innovation and R&D globally and in India, with a focus on Gujarat. Key points:
- Global R&D spending is expected to remain around 2% of GDP through 2014, led by the US, China, and Japan.
- India spends around 2.7% of GDP on R&D and was the 8th largest R&D investor globally in 2013. Gujarat accounts for over 10% of India's total R&D spending.
- Gujarat has over 35 R&D institutions focusing on sectors like pharmaceuticals, chemicals, automotive, and renewable energy. The state attracts many foreign technology agreements and companies setting up R&D
The document discusses challenges with research and innovation in India such as a lack of commercially viable research and innovation-driven R&D from the private sector. It proposes the creation of specialized industry-academia innovation clusters to address these issues. The clusters would facilitate collaboration between universities and private companies on high-risk, high-end technological research through jointly owned facilities and equipment. This would provide benefits like pre-competitive knowledge sharing, access to expertise, and opportunities to invest in promising but unproven technologies. The government would provide seed funding, while private companies would be invited to sponsor cluster development through agreements with the National Innovation Council.
The document proposes solutions to promote brain gain and inhibit brain drain in India. It discusses establishing research-oriented programs from intermediate levels, sharing ideas in a national forum, increasing CSIR powers, providing tax relief and international student plans to attract foreign talent. It also recommends mobilizing administration to recruit overseas scholars and easing return processes. The team concludes that brain gain would increase scientific collaboration, encourage youth to pursue research, and make India more competitive globally.
India is emerging as a major destination for multinational R&D projects. It currently hosts nearly 750 captive R&D centers of foreign multinationals, about 350 of which are for engineering R&D. The value of India's engineering R&D sector is estimated to be around $10 billion currently and projected to rise to $45 billion by 2020. However, India ranks only 62nd on the Global Innovation Index, showing there is still potential for growth in research and innovation. The government is taking steps to promote R&D, such as increasing national expenditure on R&D, establishing research centers in each state, and facilitating industry-academia collaboration. Barriers include lack of scientific skills, infrastructure issues, and
Just 15 years ago, China was home to 200 foreign-run R&D centers. Today, multinationals operate more than 1,500 innovation facilities throughout the country — and this number is poised to increase 20 percent by 2018. But this trend involves more than sheer presence. Over the last 10 years, we’ve witnessed a dynamic shift in what motivates multinational corporations (MNCs) to set up an innovation shop in China. For many, what began as low-cost support for local operations became an effort to adapt technologies to cater to local market demand. Now, some multinationals are changing course yet again: Having recognized China’s rise as a global innovation leader, they are tapping into the country’s thriving science and technology knowledge base to pursue fundamental research.
The document provides an overview of the science and technology sector in India. It discusses India's large talent pool with the third largest technical manpower globally. It also outlines the country's growing investments in research and development, with India emerging as a top destination for global R&D. Further, it highlights the role of various government organizations and initiatives in promoting innovation and strengthening India's position in science and technology.
India's Tech Talent Offshore Development and IT Outsourcing Investment.pdfFoxnangel
Explore India's dynamic tech industry with Fox&Angel. From the evolution of offshore development to the significance of IT outsourcing, discover lucrative investment prospects in AI, machine learning, cybersecurity, IoT, and more. Capitalize on India's tech talent and be part of the nation's journey towards global tech leadership.
The document provides an overview of the science and technology sector in India. Some key points:
- India has a large talent pool in science and technology with the third largest technical manpower in the world. It also has many universities awarding advanced degrees.
- Government policies aim to promote both public and private sector involvement in research and development. Investments in R&D from both domestic and multinational companies have been growing.
- The large consumer base and demand for innovative products provides opportunities for the science and technology sector in India.
The document provides an overview of the science and technology sector in India. Some key points:
- India has a large talent pool in science and technology with the third largest technical manpower globally and many universities awarding advanced degrees.
- Government policies aim to promote public and private sector involvement in research and development.
- The sector has seen rising investments in recent years as more multinational companies set up R&D centers in India.
- Under the 2018-19 budget, the Department of Space was allocated over $1.6 billion, including $1.02 billion for R&D in spacecraft and launch vehicles.
Global Trends in R&D-Intensive FDI and Policy Implications for Developing Cou...iBoP Asia
This document summarizes recent trends in research and development (R&D)-intensive foreign direct investment (FDI) and discusses policy implications for developing countries. It finds that while global R&D networks are becoming more multi-polar with some developing countries becoming destinations and sources of R&D FDI, this is largely driven by China and India. Growth of R&D FDI may be slowing due to mature corporate networks and economic crises. Developing effective policies can help countries attract and benefit from R&D FDI by building absorptive capacity. Both direct effects like new R&D jobs and indirect effects like knowledge spillovers must be considered.
The document provides an overview of the science and technology sector in India. It discusses India's large talent pool with the third largest technical manpower globally and 162 universities awarding thousands of doctorates and postgraduate degrees annually. It also outlines the country's growing investments in research and development, with R&D spending forecasted to increase. Additionally, the document highlights India's evolving policy framework and initiatives to promote innovation and position the country as a global science and technology leader.
IRJET- Exploration of Business Opportunities for an Entrepreneur in Real Esta...IRJET Journal
This document discusses exploring business opportunities for an entrepreneur in the real estate sector of Satara, India. It begins with an abstract on the scope for expansion in India's construction industry. It then outlines objectives to study the existing scenario in Satara, identify critical success factors, and explore opportunities and threats. A literature review and SWOT analysis were conducted through surveys of industry professionals. The SWOT analysis identified strengths like agricultural output and climate, as well as weaknesses like lack of training facilities. Opportunities included development of commercial and industrial areas. Threats included market instability and changes in government policy. In conclusion, it was determined that entrepreneurs must innovate, listen to customers, watch competitors, and consider industry trends to identify
This document provides an overview of the global challenges in recruitment and offers 10 tips for effective global recruitment. It discusses how talent markets are shifting globally due to demographic and economic changes. Skills shortages are a major issue for many countries as the workforce declines and demand for skills increases. Recruiting talent internationally presents challenges related to immigration policies, cultural differences, varying HR procedures, and ensuring compliance with regulations in multiple countries. Global recruitment requires developing a long term strategy, thorough market research, partnerships with local experts, and a focus on cultural intelligence, branding and screening candidates appropriately.
The education technology startup market has grown dramatically in recent years, with $5.065 billion raised from 2010 to mid-2015. However, the market remains challenging due to difficulties in determining an effective revenue model, fluctuating institutional budgets, and complex buying decisions. While consolidation and a focus on viable models may lead to maturation, the market is still poised to significantly lower the price of and expand access to education through technological disruption.
This document discusses a study on business clustering and the emergence of new businesses in Nigeria. The study examined 12,104 sellers of building materials in Akwa Ibom State and Cross Rivers State using questionnaires. The findings showed that business clustering has a remarkable effect on the formation of new businesses in Nigeria by generating economic multiplier effects that can lead to socio-economic transformation and the transfer of technology and innovation. It was recommended that the government invest in industrial sectors and relax import laws to encourage business clustering and positively impact production.
Daniel Sotelsek www.danielsotelsek.com
This paper examines two sources of global knowledge spillovers: foreign direct investments and trade. Empirical evidence demonstrates that foreign direct investment and trade can contribute to overall domestic productivity growth only when the technology gap between domestic and foreign firms is not too large and when a sufficient absorptive capacity is available in domestic firms. The paper proposes the terms research and development and labor quality to capture the innovative and absorptive capacity of the country. The spillover effects in productivity are analyzed using a stochastic frontier approach. This productivity (in terms of total factor productivity) is decomposed using a generalized Malmquist output oriented index, in order to evaluate the specific effect in technical change, technical efficiency change, and scale efficiency change. Using country-level data for 16 Latin American countries for 1996-2006, the empirical analysis shows positive productivity spillovers from foreign direct investment and trade only when the country has absorptive capacity in terms of research and development. Foreign direct investment and trade spillovers are found to be positive and significant for scale efficiency change and total productivity factor change.
Issues Facing Industrial Manufacturers: Staking a Claim in Emerging Markets BurCom Consulting Ltd.
Manufacturers face challenges when entering emerging markets including intense competition, international business risks, and a shortage of skilled labor. Solutions include building or buying local production, improving returns on capital equipment, and using foreign R&D to create new products for those markets. Success requires winning the war for talent through strategic recruiting and reshoring some production.
Israel is recognized as a global leader in innovation and high-tech due to its educated workforce, strong infrastructure, and business-friendly environment. The economy has grown steadily in recent years and foreign investment plays an important role. Major companies like Microsoft and Intel have research centers in Israel due to the talent, scientific research, and supportive government. The minister is confident the economy will continue growing while maintaining its position as a top destination for foreign investment and technology development.
Make in India can be a path breaking campaign provided it is grounded by right policy measures and innovation ecosystem. Technology has a pivotal role in this and the efforts of the nation in promoting technological innovations have so far yielded limited success. Technology transfer requires easing FDI limits and other fiscal incentives. However, the past experience of technology transfers in military indicated failure to deliver by foreign partners. Liberalization as well as stringent conditions is hence important to make technology transfer through collaborations. Indian government has announced some fiscal incentives and welcomed collaborations. In the light of this, the need for developing competences for technology absorption has gained attention. The paper presents technology transfer and absorption issues for the success of Make in India.
Jnu forum for mutual learning lecture on 22nd September 2012Swapan Patra
This document discusses the globalization of research and development (R&D) by multinational corporations, with a focus on trends among foreign ICT and biotechnology firms in India and China. It outlines the increasing internationalization and "triadization" of R&D as firms establish more R&D centers abroad. The document presents research questions on the motivations, structures, and linkages of foreign R&D units in India and China. It proposes examining input and output indicators like expenditures, personnel, publications, and patents over time. The methodology involves a literature review and case studies of firms in key sectors.
This document discusses research and development (R&D) expenditures and activities around the world. It notes that the United States spends the most on R&D, followed by China, Japan, Germany, and South Korea. R&D is important for developing new products, gaining intellectual property, and remaining competitive. The document also provides suggestions for how India can improve its R&D efforts, such as by establishing more school and university research departments, focusing funding on key issues, and improving international collaboration.
Vibrant Gujarat Summit on Innovation & Research developmentVibrant Gujarat
This document provides an overview of innovation and R&D globally and in India, with a focus on Gujarat. Key points:
- Global R&D spending is expected to remain around 2% of GDP through 2014, led by the US, China, and Japan.
- India spends around 2.7% of GDP on R&D and was the 8th largest R&D investor globally in 2013. Gujarat accounts for over 10% of India's total R&D spending.
- Gujarat has over 35 R&D institutions focusing on sectors like pharmaceuticals, chemicals, automotive, and renewable energy. The state attracts many foreign technology agreements and companies setting up R&D
The document discusses challenges with research and innovation in India such as a lack of commercially viable research and innovation-driven R&D from the private sector. It proposes the creation of specialized industry-academia innovation clusters to address these issues. The clusters would facilitate collaboration between universities and private companies on high-risk, high-end technological research through jointly owned facilities and equipment. This would provide benefits like pre-competitive knowledge sharing, access to expertise, and opportunities to invest in promising but unproven technologies. The government would provide seed funding, while private companies would be invited to sponsor cluster development through agreements with the National Innovation Council.
The document proposes solutions to promote brain gain and inhibit brain drain in India. It discusses establishing research-oriented programs from intermediate levels, sharing ideas in a national forum, increasing CSIR powers, providing tax relief and international student plans to attract foreign talent. It also recommends mobilizing administration to recruit overseas scholars and easing return processes. The team concludes that brain gain would increase scientific collaboration, encourage youth to pursue research, and make India more competitive globally.
India is emerging as a major destination for multinational R&D projects. It currently hosts nearly 750 captive R&D centers of foreign multinationals, about 350 of which are for engineering R&D. The value of India's engineering R&D sector is estimated to be around $10 billion currently and projected to rise to $45 billion by 2020. However, India ranks only 62nd on the Global Innovation Index, showing there is still potential for growth in research and innovation. The government is taking steps to promote R&D, such as increasing national expenditure on R&D, establishing research centers in each state, and facilitating industry-academia collaboration. Barriers include lack of scientific skills, infrastructure issues, and
Just 15 years ago, China was home to 200 foreign-run R&D centers. Today, multinationals operate more than 1,500 innovation facilities throughout the country — and this number is poised to increase 20 percent by 2018. But this trend involves more than sheer presence. Over the last 10 years, we’ve witnessed a dynamic shift in what motivates multinational corporations (MNCs) to set up an innovation shop in China. For many, what began as low-cost support for local operations became an effort to adapt technologies to cater to local market demand. Now, some multinationals are changing course yet again: Having recognized China’s rise as a global innovation leader, they are tapping into the country’s thriving science and technology knowledge base to pursue fundamental research.
The document provides an overview of the science and technology sector in India. It discusses India's large talent pool with the third largest technical manpower globally. It also outlines the country's growing investments in research and development, with India emerging as a top destination for global R&D. Further, it highlights the role of various government organizations and initiatives in promoting innovation and strengthening India's position in science and technology.
India's Tech Talent Offshore Development and IT Outsourcing Investment.pdfFoxnangel
Explore India's dynamic tech industry with Fox&Angel. From the evolution of offshore development to the significance of IT outsourcing, discover lucrative investment prospects in AI, machine learning, cybersecurity, IoT, and more. Capitalize on India's tech talent and be part of the nation's journey towards global tech leadership.
The document provides an overview of the science and technology sector in India. Some key points:
- India has a large talent pool in science and technology with the third largest technical manpower in the world. It also has many universities awarding advanced degrees.
- Government policies aim to promote both public and private sector involvement in research and development. Investments in R&D from both domestic and multinational companies have been growing.
- The large consumer base and demand for innovative products provides opportunities for the science and technology sector in India.
The document provides an overview of the science and technology sector in India. Some key points:
- India has a large talent pool in science and technology with the third largest technical manpower globally and many universities awarding advanced degrees.
- Government policies aim to promote public and private sector involvement in research and development.
- The sector has seen rising investments in recent years as more multinational companies set up R&D centers in India.
- Under the 2018-19 budget, the Department of Space was allocated over $1.6 billion, including $1.02 billion for R&D in spacecraft and launch vehicles.
Global Trends in R&D-Intensive FDI and Policy Implications for Developing Cou...iBoP Asia
This document summarizes recent trends in research and development (R&D)-intensive foreign direct investment (FDI) and discusses policy implications for developing countries. It finds that while global R&D networks are becoming more multi-polar with some developing countries becoming destinations and sources of R&D FDI, this is largely driven by China and India. Growth of R&D FDI may be slowing due to mature corporate networks and economic crises. Developing effective policies can help countries attract and benefit from R&D FDI by building absorptive capacity. Both direct effects like new R&D jobs and indirect effects like knowledge spillovers must be considered.
The document provides an overview of the science and technology sector in India. It discusses India's large talent pool with the third largest technical manpower globally and 162 universities awarding thousands of doctorates and postgraduate degrees annually. It also outlines the country's growing investments in research and development, with R&D spending forecasted to increase. Additionally, the document highlights India's evolving policy framework and initiatives to promote innovation and position the country as a global science and technology leader.
The document discusses the lack of commercially viable research and innovation-driven R&D from the private sector in India compared to other countries like China. It notes India's low output of patents and lack of private sector investment in R&D. To address this, the document proposes creating innovation clusters through increased industry-academia collaboration. Specifically, it suggests forming field-specific clusters with jointly owned lab facilities and equipment to promote knowledge sharing and high-risk research between companies and universities.
Why is Research and Developement in India Lagging?Shantanu Basu
The Indian Govt.'s R&D efforts have become almost notional in the last two decades at least,. Burdened with bureaucratic high-cost scientific research agencies modeled on India's colonial civil service has ensured that the state-funded R&D sector has become almost irrelevant, notwithstanding its giant physical resources. To the contrary, India's private sector has come forward and invested in R&D with proportionate gains in productivity and revenues. Governments must ther4efore move from a control to a facilitative role by establishing a National R&D Fund with token participation to synergize India's R&D effort so that GDP growth rates jump and national wealth multiplies.
The document provides an overview of the science and technology sector in India. It discusses India's large talent pool with the third largest technical manpower in the world. It also highlights the country's growing investments in research and development, with R&D expenditures forecasted to increase. Additionally, the document outlines key organizations supporting science and technology in India like the Council of Scientific and Industrial Research and Defence Research and Development Organisation.
The document provides an overview of science and technology in India. It notes that India has the third largest technical manpower pool globally and 162 universities awarding over 4,000 doctorates and 35,000 postgraduate degrees annually. Government policies aim to promote both public and private sector involvement in research and development. India's share of global scientific publications is rising at 12% annually and R&D investments have been growing steadily, positioning the country as a key global hub for research.
KAUST is developing an online regional innovation network for the Middle East and North Africa to help address economic challenges in the region. Through crowdsourcing ideas from over 400 participants, the network aims to generate solutions in five key areas: making online tools more useful, accelerating R&D and business formation, increasing science accessibility, using Arabic for knowledge transfer, and establishing an IP organization. The network seeks to overcome barriers like weak collaboration and networks by facilitating partnerships across universities, companies and governments in the region.
This white paper explores the venture studio model. In doing so, we present the venture studio as a new generative framework central to boosting frontier tech ecosystems. Seen by many as an emerging asset class, venture studios efficiently reframe the dynamics between time to market, resources allocation, and capital structures that frontier tech startups need to become the next unicorns.
The Steadfast and Reliable Bull: Taurus Zodiac Signmy Pandit
Explore the steadfast and reliable nature of the Taurus Zodiac Sign. Discover the personality traits, key dates, and horoscope insights that define the determined and practical Taurus, and learn how their grounded nature makes them the anchor of the zodiac.
Unlocking WhatsApp Marketing with HubSpot: Integrating Messaging into Your Ma...Niswey
50 million companies worldwide leverage WhatsApp as a key marketing channel. You may have considered adding it to your marketing mix, or probably already driving impressive conversions with WhatsApp.
But wait. What happens when you fully integrate your WhatsApp campaigns with HubSpot?
That's exactly what we explored in this session.
We take a look at everything that you need to know in order to deploy effective WhatsApp marketing strategies, and integrate it with your buyer journey in HubSpot. From technical requirements to innovative campaign strategies, to advanced campaign reporting - we discuss all that and more, to leverage WhatsApp for maximum impact. Check out more details about the event here https://events.hubspot.com/events/details/hubspot-new-delhi-presents-unlocking-whatsapp-marketing-with-hubspot-integrating-messaging-into-your-marketing-strategy/
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Fdifor Indian R&D
1. GENERAL ARTICLE
Foreign R&D centres in India: Is there any
positive impact?
N. Mrinalini and Sandhya Wakdikar*
With the new emerging trend of internationalization of R&D, MNCs are targeting developing countries
in Asia for setting up their dedicated R&D centres. The resource scarcity in developed countries,
due to escalating demand on S&T infrastructure and the prohibitive cost of highly skilled man-
power has brought in this new trend. The skilled manpower and the reasonably developed S&T in-
frastructure have been drawing MNCs to the shores of India for setting up their dedicated R&D
centres. Presence of foreign R&D will have some impact on the host country; it could be negative
or positive. As more and more R&D centres are being allowed to operate in India, we presume that
foreign R&D has been allowed here expecting some positive impact (or benefits) on our innovation
system. The benefits to India, however, is the grey area. The available literature suggests that the
presence of foreign R&D centres can trigger the spillover effect onto the host country’s innovation
system depending on the ability, preparedness and conducive policy package of the host country.
This article proposes the need for a detailed investigation into the dynamics of interaction bet-
ween foreign R&D centres and the Indian production and R&D system, to understand the positive
impact. This would help in developing a conducive policy package for maximizing the benefits.
Keywords: Foreign R&D centres, internationalization of R&D, positive impact, S&T infrastructure.
INTERNATIONALIZATION of R&D has emerged as an im- In this article, we try to construct an Indian scenario of
portant mode to access the global pool of knowledge. the presence of foreign R&D and indicate the linkages
Types and ways of establishing linkages with the re- and probable outcomes (spill-overs). We present a review
source centres in the host countries vary from contract re- of the literature on the dynamics of the globalization of
search to setting up dedicated R&D centres. Lately, world R&D. This is followed by a review of the experience from
leaders in high-tech areas are targeting developing coun- other countries, where we broadly define the expected
tries in Asia for setting up their R&D centres. China and benefits for the host countries. Next, we present a broad
India are emerging as the most preferred destinations for Indian scenario by emphasizing the need for a detailed
MNCs. Do the host countries also derive any direct or in- investigation on the dynamics of interaction between for-
direct benefits from the presence of foreign R&D? In eign R&D centres and the Indian production and R&D
other words, is there any positive impact of its presence system, to study the impact. We conclude with a summary
on the host country’s innovation system. This is still a of the main argument.
grey area. Although there is a considerable number of res-
earch articles from the perspective of business strategies Internationalization of R&D
of MNCs, not many rigorous studies are available on the
benefits (positive impact) for the host countries. This is Internationalization of R&D is a phenomenon of the late
important for framing appropriate policy packages to en- eighties. Many MNCs set up production facilities in the
hance positive impact on the host country’s economic growing overseas markets through their subsidiaries, or
growth. Recently, countries like China, Korea and Brazil through collaborations with local companies. In many
have started investigating the balance of benefits from the cases products have to be modified to suit the local tastes,
activities of the foreign R&D centres in their respective conditions, and also locally sourced materials or compo-
countries. In the case of India, however, the issue has not nents. R&D facilities were to be created to address such
attracted the attention of the relevant departments and needs and modification of the products and technologies.
agencies. The present trend of internationalization of R&D, how-
ever, goes much beyond this practice. It is more about
The authors are in the National Institute of Science, Technology and attaining or retaining global competitiveness by having
Development Studies, New Delhi 110 012, India access to R&D infrastructure and capabilities from multi-
*For correspondence. (e-mail: swakdikar@gmail.com) ple sources1–10.
452 CURRENT SCIENCE, VOL. 94, NO. 4, 25 FEBRUARY 2008
2. GENERAL ARTICLE
Highly technically advanced domestic markets of deve- This is the situation which brings in more and more of
loped countries helped MNCs in generating and sustain- R&D centres by MNCs to the Asian countries, especially
ing certain firm, specific technological knowledge to India and China14. US firms overseas R&D activities15
advantage. This paved the way for their growth, which has increased from 3% in 1994 to 10% by 2002. As obser-
was much more than what the home country market could ved by UNCTAD, ‘the expansion of R&D into selected
absorb. In countries like Sweden, with more MNCs developing countries is a reaction to increased competi-
operating in high-tech areas, the S&T infrastructure could tion, which forces firms to innovate more at lower cost.
not cope with the large-scale demand on human resource TNCs are especially attracted to host countries that have
and other S&T infrastructure11,12. MNCs started looking the appealing combination of low wages and large pools
for resources in other developed countries because of of skilled workers. The historical near-monopoly of deve-
competitive pressure, to create and sustain the techno- loped countries on scientists and engineers is diminishing.
logical knowledge advantage. In 2000/01, for example, China, India and Russia together
The changing faces of new technologies further aug- accounted for a third of all tertiary technical students in
mented the process. As observed by Granstrand4,5, ‘Today, the world’16. Manpower shortage on the one hand and
a new pattern can increasingly be discerned. As a conse- manpower utilization on the other, have also been the
quence of the rapidly escalating pace and costs of techno- main factors for the shift towards developing countries. A
logical development, and the increasing number of sources large part of this skilled manpower is under utilized, and
of front-line technologies and their concurrent combina- therefore, is easily accessible to foreign R&D centres
tions in different products and processes, creating and who can offer comparatively attractive compensation, better
maintaining technological competitiveness requires ac- career options and exposure to frontiers of R&D15,17,18.
cess to a wider range of scientific and technological skills The match between supply and demand guided the flow
and knowledge than is available in the home market’. of foreign R&D to the shores of developing countries, in-
There are three distinct patterns of internationalization cluding India. The comparative advantage of the Indian
of R&D. What has been described above was a pattern when supply side can be understood from the responses of 500
MNCs from developed countries were seeking R&D and senior executives in a recent global survey by the Eco-
technological inputs from other developed countries of simi- nomic Intelligent Unit19 of the The Economist. The find-
lar technological competence. Thus USA used to be the ing is reproduced in Table 1. India tops the preference list
main destination of MNCs from Sweden. Although com- when it comes to ‘access to highly skilled labour force,
panies like Sandvik (Swedish MNC) had their production R&D activities and new opportunities in outsourcing’.
facilities in India (also a small R&D unit for cutting tools Overall, however, China scores over India in the UNCTAD
for local Indian market, outside Sweden), the major R&D study on FDI for R&D. Figure 1 reproduces the results of
facilities were set up in other developed countries. the UNCTAD survey on attractive prospective locations
The newly industrialized countries like Japan and Korea of R&D centres. India, according to the survey, is the third
set up a new pattern of international R&D. They started most preferred destination after USA and China. The sur-
scouting new technological knowledge by setting up vey refers to the period 2005–09. In an earlier survey for
R&D centres mainly in USA. The best example of this 2004, India’s position as an attractive R&D destination
pattern is the Korean initiative for 486 chips develop- was sixth. India has thus moved up by three positions.
ment. Korea was about ten years behind Japan and USA MNCs are drawn to India for various reasons, more so
in developing the technology. It quickened the learning for the highly skilled manpower and for access to R&D
process with its own R&D centres in the Silicon Valley13. activities. The foreign R&D centres try to establish links
The more recent trend of developed countries targeting with Indian R&D institutions and firms to achieve their
developing countries is the emerging third pattern. What goals. In this scenario, the question that comes to mind is
was initially the stray problem of resource shortage (R&D whether such linkages can have any positive impact on
infrastructure and manpower) for individual countries (like Indian production and R&D. If it is so, what are the prob-
the example of Sweden), turned out to be a major problem able spillovers? In the following section, experiences of
for all developed countries. The domestic S&T resources some developing countries are discussed to understand
became inadequate to face the pressure of competition and the process of spillover to the host country.
consequent pressure on the process of innovation. The
developing countries, therefore, became the destination. Positive impact on host countries: The global
As stated by Hakanson and Nobel11, ‘Supply conditions experiences
in the market for engineers and technical knowledge may
in some foreign countries be so favourable that they induce From the perspective of the host country, the first impor-
companies to set up local research establishments to “tap tant issue is regarding the relevance of the foreign R&D
into” the local scientific infrastructure, be it in terms of centres in the context of S&T and R&D priorities of the
labor market for scientists and engineers, privileged ac- host country. It may as well be argued that it is in situ
cess to local universities and research institutions etc’. brain-drain. The traditional form of brain drain (migration
CURRENT SCIENCE, VOL. 94, NO. 4, 25 FEBRUARY 2008 453
3. GENERAL ARTICLE
Table 1. Destination of FDI: Choice of the 500 executives
China Euro area Japan Russia USA UK India New EU entrants Brazil
New consumer markets 49 9 2 5 7 2 9 15 4
Low-cost labour 50 2 0 3 1 0 29 12 3
New partnership possibilities 20 22 5 5 14 4 12 14 3
New corporate markets 23 22 3 5 17 3 7 15 4
Access highly skilled labour force 6 22 7 3 14 6 30 10 2
New opportunities in outsourcing 16 9 1 3 7 2 46 12 4
Acquisition opportunities 15 20 2 5 13 5 8 22 9
Research and development activities 11 20 5 4 22 7 24 6 3
Greater efficiency in supply chain 17 26 6 2 22 5 10 9 3
Source: Economist Intelligence Unit19.
Figure 1. Most attractive prospective R&D locations, 2005–09 (per cent of respondents mentioning the location). Source: UNCTAD15.
of human resources) is seen as a national loss of human of indirect positive as well as some negative effect on the
resources for the development of which a state has spent host country’s innovative system. Foreign R&D centres
significant amount of scarce resources, but which is not can contribute to the host country’s innovation system
available for the use of that state. In the context of for- through their linkages with the host country’s institu-
eign R&D centres, the brain does not have to migrate. It tions8,15,23. The positive effect is basically in terms of cer-
is accessible in its own soil at much lesser cost. The brain tain spillover effects, competitiveness among the local
is used for the purpose of the foreign companies, whose firms, contract research work to host country’s R&D orga-
priorities may not coincide with that of the state. nizations, and local firms having access to high techno-
The other side of the issue is the ability of the host logy through partnership/collaboration. How the presence
countries to extract benefits from the presence of the for- of MNCs would affect the host country depends upon
eign R&D centres. In fact, it offers a good opportunity to many factors, like the level of technological advancement
many developing countries to access frontiers of research of the host country, conducive policy measures, local inno-
in technology and also management of technology and vation system, S&T infrastructure, etc.
R&D15,20. In case of many countries the positive impact It has been observed that the S&T system in some of
of foreign R&D has been reported by various stud- the developing countries is more suited to cater to the re-
ies4,5,15,18,21. According to Dunning22, there is a possibility quirements of the MNCs rather than the local firms. In
454 CURRENT SCIENCE, VOL. 94, NO. 4, 25 FEBRUARY 2008
4. GENERAL ARTICLE
Brazil, MNCs have more interaction with the local uni- resource spillover (they move to other firms or set up new
versities and research institutions than the local enterprises).
firms15,18,24. The important aspect is the necessity of a dy-
namic industrial base in addition to the supportive S&T
R&D centres of MNCs and local firms
infrastructure to absorb the spillover effect. Some studies
on Korea, Brazil and China have focussed on the issue
(a) Joint product development to cater to the global market;
of linkages with the host country’s innovation system and
(b) Contract for product development; (c) Access to global
the probable implications to the innovation dynamics of
market and (d) Competitiveness.
the host country. The Korean study, based on a survey of the
These findings (Figure 2) sketch the likely benefits
foreign R&D centres operating in Korea, has focused on
from foreign R&D centres to the host countries.
many important issues like competitiveness among the
The area of intersection with local R&D system and
local firms and benefit to the R&D system in terms of
universities on the one hand and the production system on
joint research activities, technology transfer, etc.25. The
the other, indicates the linkages with foreign R&D cen-
study emphasizes on the need for a policy package to de-
tres. Through the modes, various types of linkages have
rive benefit for the host country. A Brazilian study points
certain outcomes. These outcomes spillover to the pro-
out that the host country’s innovation system gets linked
duction system as well as R&D/university system; or in
to the global system, where the MNCs R&D centres have
the innovation system. It is the flow from outcomes to the
strong local S&T linkages18. Contribution of the R&D
production and R&D systems that requires close attention
centres to the host country’s innovation system depends
from the host country for deriving desirable benefits from
upon the strength of their S&T links with local and global
the presence of foreign R&D centres. Important questions
partners. The nature and type of linkages and also their
arise about: (a) The extent and nature of outcomes; (b)
extent have implications on the host country’s R&D and
Extent and nature of spillover in the production and R&D
production system. Similarly, a study on the Shanghai inno-
systems so that the outcomes do not remain restricted to
vation system has presented some preliminary evidence
the formal linkages, and (c) Adequacy of the modes of
to show that there is technology spillover from MNCs to
linkages and alternative desirable modes for better out-
the local economy. Here, the spillover is in the form of
comes and spillover. Close monitoring of these aspects
setting up of joint research laboratories, with local uni-
would indicate the direction and needs of policy incen-
versities and this has triggered similar joint research labo-
tives required to enable the domestic innovation system
ratories being set up by some of the local large firms with
to benefit from foreign R&D.
the universities. The other observed effect has been the
spin-off firms from the R&D centres of MNCs21. Studies
do indicate the possible benefits to the host country’s in- Foreign R&D centres in India
novation system, but not much is known about its im-
pact7,15,18,20,21. According to Narula and Zanfei26, to reap According to the TIFAC report28, over 100 foreign orga-
the benefits from foreign R&D, it is essential for the host nizations (mainly MNCs) have opened R&D centres in
country to have the basic technological capability to ab- India over the last decade. Broadly, two types of foreign
sorb the spillover from its activities. interests have established their R&D units in India. Some
The following typology is indicative of the linkages are involved in incremental innovations and their main
and their outcomes7,8,15,17,18,20–22,27. aim is to support the existing products introduced in India.
However, some R&D centres such as Texas Instruments,
General Electric, and IBM are engaged in developing
R&D centres of MNCs and local universities/R&D
new products8,15,20. Compared to the earlier periods, a
institutions
significant shift is observed in the types of MNCs who
are now opening their R&D centres. Earlier, many of the
(a) Collaboration resulting possibly in joint research labo-
MNCs had their R&D set-up as a support to their produc-
ratories; (b) Setting up of specialized training centres; (c)
tion unit. Late entrants are now opening their dedicated
Centres of excellence; (d) Contract research; (e) Joint re-
independent R&D centres for taking up R&D activities in
search projects with links to other global universities and
new and emerging research in high-tech areas.
R&D centres; (f) New curriculum development and (g)
Table 2 presents the scenario of foreign R&D centres
Upward movement in the value chain.
in India. During 1996–2000, more countries have estab-
lished their R&D centres in India. This has been the
R&D centres of MNCs and local human resource phase when India became a centre for global R&D activi-
ties. The US has the maximum number of R&D centres
(a) Utilization of highly skilled labour force; (b) Man- with maximum R&D workers employed. Investments by
power mobility; (c) Spin-off firms; (d) Reverse brain- foreign firms in India have been rising sharply. Intel an-
drain, brain circulation and global networking; (e) Human nounced over a billion-dollar investment over the next
CURRENT SCIENCE, VOL. 94, NO. 4, 25 FEBRUARY 2008 455
5. GENERAL ARTICLE
Figure 2. Desirable flow of benefits from foreign R&D centres to host countries.
Table 2. Country-wise R&D centres, R&D investment and R&D workers employed in India: A profile up to 2003
Number of R&D workers in R&D centres
Year of establishment established (R&D investment in million rupees)
Number of Prior Beyond Prior Beyond 2000
Country R&D centres to 1995 1996–2000 2000 up to 2003 to 1995 1996–2000 up to 2003
Austria 1 1 50 (100)
Canada 3 2 1 539 (400) 55 (110)
Taiwan, China 2 1 1 10 (8) 500(2700)
Denmark 1 1 5 (1.5)
France 5 1 2 2 800 (900) 150 (18.2) 20 (20)
Germany 7 7 2050 (3452.4)
Japan 7 1 3 3 NA 50 (225) 50 (197.2)
Korea 3 2 1 650 (4500) NA
Mauritius 2 1 1 10 (5) 255 (510)
The Netherlands 3 1 1 1 400 (400) 30 (225) 100 (200)
Norway 1 1 NA
South Africa 1 1 50 (30)
Sweden 2 1 1 60 (12) 20 (40)
Switzerland 2 2 170 (340)
UK 7 1 2 4 100 (20) 250 (500) 604 (569)
USA 53 12 21 15 6330 (12175) 4940 (11051.3) 2646 (930.01)
Source: TIFAC report28.
five years29, while Cisco announced over a billion-dollar R&D centres for medical equipment, aviation engines,
investment over the next three years30. This would increase consumer durables, etc. More than one-third of researchers
its staff strength in India threefold. GE31 sets a goal of US in these centres are Indians who have returned to India
$8 billion in revenues and US $8 billion in assets in India from the US. This is brain circulation, which is now being
by 2010. Du Pont India plans to set up a knowledge cen- observed in most of these developing countries27.
tre in India in the next three years, which would mean Table 3 shows a few representative cases of foreign
that the R&D strength will rise ten fold32. Firms like Ford R&D investments in India, their nature of alliance with
India and Honda Siel along with domestic firms such as the domestic R&D and production system, and the mode
Ashok Leyland and Maruti Udyog spent a total of Rs 300 of linkages.
crore on R&D activities33. Various modes and types of linkages that are evident
Clinical research by MNCs is one area which had sig- from Table 3 match the global experiences mentioned
nificant investment in the Indian pharmaceutical sector. above. The main trend of foreign R&D in India is to tap
The John F. Welch Technology Centre (JFWTC) in Ban- the skilled human resource and the scientific institutions,
galore, is General Electric’s (GE’s) first and largest inte- for entry into the Indian market. In some cases this has
grated, multidisciplinary research and development centre resulted in the creation of new knowledge centres or new
outside the US. GE has employed over 2400 people in its production plants. The alliances have also resulted in
456 CURRENT SCIENCE, VOL. 94, NO. 4, 25 FEBRUARY 2008
6. GENERAL ARTICLE
Table 3. Examples of foreign R&D alliances in India
Alliance Mode Type of alliance
Du Pont–RIL Alliance for DuPont’s entry into the Indian market. New centre
R&D for process and product technologies in India
Du Pont–CSIR Research agreement. DuPont to have access to CSIR DuPont setting up knowledge centre
facility and get its talent
Emerson–Tata Liebert Joint venture Emerson buys over Tata’s stake to form new
firm
Ericsson–WIPRO Total R&D outsourcing. WIPRO acquires resources– WIPRO takes over R&D of Ericsson
professionals, assets. WIPRO to provide
R&D consultancy service to Ericsson
Ericsson–TCS Pact for telecom solutions New development centre
GE–TCS Creating new facility to cater to global operations of TCS to have access to global market
GE, enhancing TCS capabilities
GE–Satyam Computer Service Ltd Joint venture New facility for global activities of GE
Hewlett Packard–IIT Chennai Research to help global efforts of HP New facility
HP–IISc Banglore Joint research New product development
Synopsys–View Logic System Inc Partnering for getting work done for Synopsys Synopsys setting up new centre for easy jobs
and later for major jobs
Diebold–Tata Infotech Contract agreement, manufacturing and marketing Tata Infotech gets into new market
products of Diebold
GE International–TCS Creating new facility to cater to global operations of Enhancing TCS capabilities. TCS to have
GE. Facility utilized by customers of both firms access to global market
GE–Satyam Computer Services New facility New product development
Lucent–Finolex Finolex gets technology from Lucent New plant
Toyota–IICT Contract research to IICT New laboratory set up.
Source: IBID, and various business and corporate news.
joint product development for Indian and even for the ness in India34. The emerging new business culture among
global market. The GE–Satyam alliance is one such exam- Indian scientists is creating a new trend in entrepreneur-
ple. HP’s linkages with R&D institutes like IITs and IISc, ship. Another interesting feature is that the Indian firms
Bangalore for new product development for the global are creating high-tech facilities to cater to global requi-
market is another such example. Indian firms, through al- rements. Recently, Jubilant Organosys has inaugurated a
liances with foreign firms, also have access to the global state-of-the-art Drug Discovery Centre in Bangalore,
market as in the case of TCS. The GE–TCS alliance in which would provide innovative solutions to global
India resulted in the setting up of a new facility to cater to pharmaceuticals and life-sciences companies35.
the global operations of GE. Due to this, the capabilities It is to be noticed from the above discussions that link-
of TCS were enhanced and it also had access to the global ages were mainly with established companies or R&D
market. Diebold had a contract agreement with Tata organizations. In Figure 2, this is indicated by the overlap
InfoTech for the manufacture of its product in India, thus of the foreign R&D space and those for domestic R&D
resulting in Tata InfoTech entering a new market. The and production systems. While explaining Figure 2, we
Ericsson–WIPRO alliance turned out to be beneficial for have argued that the efficacy of the foreign R&D is fi-
WIPRO, as it provided R&D consultancy services to nally to be justified by its spillover to the remaining
Ericsson and later took over the R&D of Ericsson. In space outside the overlaps. It is essential to probe the
India, the link between R&D centres and the education linkages and to delineate the process of change that is
system has led to the introduction of new curricula. This taking place in the Indian innovation system. The direct
has been the case with Motorola, which has introduced a benefits that are accruing to the institutions and organiza-
postgraduate degree course in advanced telecommunica- tions having linkages with foreign R&D centres and the
tions engineering in the Pune Institute of Advanced extent of the spillover effect need to be investigated.
Technologies. Similar patterns of skill development are According to the UNCTAD report, the significant in-
observed in Costa Rica, Mexico, Singapore, etc.15. crease of R&D expenditure and patenting activities of
There are certain observable changes taking place in Indian firms could be due to technology spillover effect
the Indian production and R&D system. An Indian firm of R&D activities of TNCs in India. The possible impact,
and a public research institute have jointly formed a res- according to UNCTAD, is that the presence of these for-
earch centre to work in high-tech areas to compete with eign R&D centres can encourage commercial culture
global players. The creation of CranesSci MEMS Lab is among scientists and engineers, and inculcate innovative
one such example. Partnership between Cranes Software culture among the local firms20. Issues that need further
International Systems and IISc has resulted in the crea- investigation are as follows: What is the nature and extent
tion of a new culture in micro and nano technology busi- of linkages with the Indian production and R&D system?
CURRENT SCIENCE, VOL. 94, NO. 4, 25 FEBRUARY 2008 457
7. GENERAL ARTICLE
What are the observable changes in competitiveness in 17. Reddy, P. and Sigurdson, J., Emerging patterns of globalization of
the Indian sectors (not only in organizations that have corporate R&D and scope for innovation capability building in
developing countries? Sci. Public Policy, 1994, 21, 283–294.
linkages) where foreign R&D centres are concentrated? 18. Dirk, M. B., Interaction between TNC subsidiaries and the host
What are the shifts and changes in the R&D, marketing, country innovation system: The case of TNC subsidiaries located
human resource and production profile of the firms and in Brazil, Working Paper, Universidade Federal do Rio Grande do
public R&D institutions where foreign R&D centres have Sul, School of Management, Porto Alegre, Brazil, May 2004.
their linkages? 19. Economic Intelligence Survey, Economist Intelligence Unit, The
Economist World Investment Prospects, 2004.
20. UNCTAD, Globalisation of R&D and developing countries,
Conclusion United Nations, 2006.
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458 CURRENT SCIENCE, VOL. 94, NO. 4, 25 FEBRUARY 2008