ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Sector and Cluster Effects of FDI in R&D in India

India has been attracting foreign direct investment in research and development over the past decade. This article provides a quantitative assessment of the FDI in flow for R&D from 2003 to 2009, and the sector and cluster preferences of multinational corporations investing in R&D in India. FDI in R&D is limited to the information technology, pharma/ biotechnology, and automotive sectors. This infl ow of FDI has not caused growth, but rather has chased growth-oriented sectors.

R&D Strategies of MNCs in India

India has emerged as one of the major destinations for foreign direct investment in research and development. As a host country, does India gain from the FDI infl ow into R&D? Does it help build its innovation capabilities? It appears that the R&D centres of the MNCs operate in isolation and use India as a human resource hub for the MNCs' global R&D activities.

National Textile Policy and Textile Research

The new textile policy has emphasised the need for technology upgradation for making the textile industry globally competitive. This article examines the effectiveness of organised technology supply system for the textile industry under the control of the government and managed by the industry associations. The authors argue that the lack of an appropriate strategy on the part of the government and the industry has marginalised the R and D activities in the textile research system.

Organisational Arrangement for Learning in Indian Firms

Based on a sample of firms - component suppliers to two major automotive manufacturers - in and around the National Capital Region (NIC) of Delhi, this study shows the variation in the learning ability, intention and effort, depended upon the strategy of the firm. The variation is also dependent on whether the firms want to be market leaders, followers or imitators. Depending upon the firm's strategy, efforts are made to build the firm's absorptive capacity. Tiny firms operate basically at the lower end of technology and hence learning is at the operational level and efforts are not made to retain humanpower. The linkage has, however, resulted in learning on productivity improvement through time, inventory and resource management. The firms that have joint ventures with buyers make special efforts to train and retain humanpower. They also have technological collaborations with world market leaders in their respective fields.
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