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Foreign R&D Centres in India: An Analysis of their Size, Structure and Implications

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  • Basant, Rakesh
  • Mani, Sunil

Abstract

The study measures the contribution of MNCs to the generation of innovations from India. The focus is on innovations that are carried out in foreign R&D Centres. After having mapped out the size of this sector, the study develops a way of classifying them into two categories on the basis of their actual record with respect to performance of innovations. Further we survey the policies that are available in India to promote FDI in R&D services. The study also identify the characteristics of these foreign R&D centres in terms of a number of indicators like their, size, domain expertise, physical location and then it distils out the interaction of these centres with India’s National System of Innovation. The latter is carried out through a primary survey. The contribution of this study is an identification of the size of foreign R&D Centres in India from official sources of data and its actual working. The study has thus a number of pointers for public policy for promoting this activity so that it is beneficial to the host economy of India.

Suggested Citation

  • Basant, Rakesh & Mani, Sunil, 2012. "Foreign R&D Centres in India: An Analysis of their Size, Structure and Implications," IIMA Working Papers WP2012-01-06, Indian Institute of Management Ahmedabad, Research and Publication Department.
    • Handle: RePEc:iim:iimawp:11430
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    File URL: https://www.iima.ac.in/sites/default/files/rnpfiles/8040799502012-01-06.pdf
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    References listed on IDEAS

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    1. Reddy, Prasada, 1997. "New trends in globalization of corporate R&D and implications for innovation capability in host countries: A survey from India," World Development, Elsevier, vol. 25(11), pages 1821-1837, November.
    2. Barry Bosworth & Susan M. Collins, 2008. "Accounting for Growth: Comparing China and India," Journal of Economic Perspectives, American Economic Association, vol. 22(1), pages 45-66, Winter.
    3. Sunil Mani, 2010. "Financing of industrial innovations in India: how effective are tax incentives for R&D?," International Journal of Technological Learning, Innovation and Development, Inderscience Enterprises Ltd, vol. 3(2), pages 109-131.
    4. Sunil Mani, 2002. "Government, Innovation and Technology Policy," Books, Edward Elgar Publishing, number 2688.
    5. Kuemmerle, Walter, 1999. "Foreign direct investment in industrial research in the pharmaceutical and electronics industries--results from a survey of multinational firms," Research Policy, Elsevier, vol. 28(2-3), pages 179-193, March.
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    Cited by:

    1. Pohit, Sanjib & Biswas, Pradip, 2016. "FDI in R&D: An Introspection," MPRA Paper 70764, University Library of Munich, Germany.
    2. Sunil Mani & Sudip Chaudhuri & V.K. Unni & Carl Pray & Latha Nagarajan, 2013. "TRIPS compliance of national patent regimes and domestic innovative activity: the Indian experience," Chapters, in: Sunil Mani & Richard R. Nelson (ed.), TRIPS Compliance, National Patent Regimes and Innovation, chapter 3, pages 57-112, Edward Elgar Publishing.
    3. Mh Bala Subrahmanya, 2017. "HOW DID BANGALORE EMERGE AS A GLOBAL HUB OF TECH START-UPs IN INDIA? ENTREPRENEURIAL ECOSYSTEM — EVOLUTION, STRUCTURE AND ROLE," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 22(01), pages 1-22, March.
    4. Lee Branstetter & Guangwei Li & Francisco Veloso, 2014. "The Rise of International Coinvention," NBER Chapters, in: The Changing Frontier: Rethinking Science and Innovation Policy, pages 135-168, National Bureau of Economic Research, Inc.
    5. Motohashi, Kazuyuki, 2014. "India as a destination of multinational’s R&D: Growingimportance and management strategy of local R&D centers," MPRA Paper 57281, University Library of Munich, Germany.
    6. Srivardhini K. Jha & Charles Dhanaraj & Rishikesha T. Krishnan, 2018. "From Arbitrage to Global Innovation: Evolution of Multinational R&D in Emerging Markets," Management International Review, Springer, vol. 58(4), pages 633-661, August.

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