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Sources of Innovation and Technology Capability Development in the Indian Automobile Industry

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  • Dinar Kale

    (ESRC Innogen Centre, Development Policy and Practise, Faculty of Maths, Computing and Technology, The Open University)

Abstract

In the last decade the Indian auto industry has shown increasing levels of technological sophistication and significant growth. The Indian auto industry consists of local firms with indigenous design and development capability, well established global brands and has marketing presence in Indian as well as other emerging markets. This paper tracks capability development in the Indian auto industry and seeks to understand the factors both internal and external to firms that have shaped innovative capabilities. It points out that the Indian government’s industrial policy secured development of basic capabilities but restricted innovative capability development in auto manufacturing. This paper reveals that key attributes of firm ownership such as managerial vision and diversified nature of business, helped Indian firms in the development of the innovative capabilities.

Suggested Citation

  • Dinar Kale, 2012. "Sources of Innovation and Technology Capability Development in the Indian Automobile Industry," Institutions and Economies (formerly known as International Journal of Institutions and Economies), Faculty of Economics and Administration, University of Malaya, vol. 4(2), pages 121-150, July.
    • Handle: RePEc:umk:journl:v:4:y:2012:i:2:p:121-150
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    File URL: http://ijie.um.edu.my/filebank/published_article/3945/Fulltext6.pdf
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    References listed on IDEAS

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    1. Ernst, Dieter & Kim, Linsu, 2002. "Global production networks, knowledge diffusion, and local capability formation," Research Policy, Elsevier, vol. 31(8-9), pages 1417-1429, December.
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    Cited by:

    1. Saon Ray & Smita Miglani, 2018. "Upgrading in the Indian automobile sector: The role of lead firms," Indian Council for Research on International Economic Relations (ICRIER) Working Paper 360, Indian Council for Research on International Economic Relations (ICRIER), New Delhi, India.
    2. Kristina Gyllensten & Kjell Torén & Mats Hagberg & Mia Söderberg, 2020. "A sustainable working life in the car manufacturing industry: The role of psychosocial factors, gender and occupation," PLOS ONE, Public Library of Science, vol. 15(5), pages 1-12, May.
    3. Thakur-Wernz, Pooja & Cantwell, John & Samant, Shantala, 2019. "Impact of international entry choices on the nature and type of innovation: Evidence from emerging economy firms from the Indian bio-pharmaceutical industry," International Business Review, Elsevier, vol. 28(6), pages 1-1.
    4. Papaioannou, Theo & Watkins, Andrew & Mugwagwa, Julius & Kale, Dinar, 2016. "To Lobby or to Partner? Investigating the Shifting Political Strategies of Biopharmaceutical Industry Associations in Innovation Systems of South Africa and India," World Development, Elsevier, vol. 78(C), pages 66-79.
    5. Thakur–Wernz, Pooja & Wernz, Christian, 2022. "Impact of stronger intellectual property rights regime on innovation: Evidence from de alio versus de novo Indian bio-pharmaceutical firms," Journal of Business Research, Elsevier, vol. 138(C), pages 457-473.

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    More about this item

    Keywords

    automotives; capabilities; India; innovation; technology;
    All these keywords.

    JEL classification:

    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
    • O25 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Industrial Policy
    • O19 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations

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