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.

National Innovation Survey

This is regarding Sunil Mani’s article “The Science, Technology and Innovation Policy 2013” (EPW, 9 March 2013). The author refers to “Understanding Innovation: The Indian Context” (August 2012) and writes: “Regarding non-R&D innovation generating activities and routes, there is some...

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.

Leveraging Liberalisation

Using the Indian cement industry as an example, this paper argues that there is a limit to leveraging liberalisation. Developing-country companies cannot match the clout of MNCs in controlling the global market. The Indian cement industry, which witnessed rapid production and capacity growth during the past two decades, has suffered a decline in exports in recent years as MNCs setting up shop in other developing countries retained their hold on international markets.

Configuration of Indian Software Industry

The IT Task Force has set a vision of making India an IT superpower by 2008. While the Task Force recognises that software and hardware are the two sides of a gold coin, its report is oblivious to the mechanism that would establish an interdependent growth path for the IT industry of India. It has been argued in this paper that the weakness of the Indian software industry continues because of its weak linkages with the domestic manufacturing industry where rests the scope of critical software capability - the high skill/high risk/high value embedded software segment that can flourish only with wide applications of microelectronics in the industrial products and processes. This is the segment that offers the opportunity for interdependent growth of both hardware and software sectors of the Indian IT industry. The structure of Indian IT industry that supports low value/low skill products and services is not strong enough to enter the high investment high R and D area of the embedded software segment without a strong strategic push.

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.
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