Liberalization and the growth of business‐led R&D: the case of India

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Firms and organizations in India have responded to market reforms, liberalization and globalization by improving efficiency, importing technology and by increasing in‐house R&D. This paper highlights some of the evolutionary changes that have occurred since India undertook sweeping reforms in July 1991 to open its economy to foreign participation and competition. Although some authors, such as Forbes (1999), have looked at the impact of the liberalization on India’s R&D and innovation, they missed a number of dimensions that have far‐reaching implications for the process of technological capability development in India. Using the concept of technological capability, this paper makes a contribution to the discourse on the changing R&D and innovation scenario in the face of on‐going liberalization in India. It concludes with three case studies, which illustrate some of the recent changes made by industrial organisations.

Document Type: Original Article


Affiliations: 1: Centre for Technology Management, Administrative Staff College of India, 2: India R&D Unit, Manchester Business School

Publication date: October 1, 2000

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