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

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State Support for Industrial R and D in Developing Economies

The importance of state support for industrial R and D in literature fails to take cognisance of the contextual specificity of late industrialising economies. The problem of inadequate investment in technology by domestic firms, engaged primarily in 'technology catch-up', is rooted in their dependence on technologically advanced foreign firms and their inability to break down non-technological barriers to entry in the product market. Through a comparative narrative of technology development under state support in India and China, this paper seeks to provide some evidence on the need to be sensitive to the stage of technological development, and the nature of industry in designing policies of state support for industrial R and D for effective intervention.

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