Innovative Strategy and its Welfare Implications

Indian corporate leaders have done well in standing up to global giants who caught them unprepared in 1991. Their companies have grown in size and market share. Some have even entered new international markets. But Indian corporations need to look beyond this into the uncertain future, in order to win the next round. Infact, business organizations would need distinct products, processes, technologies, business models and organizations so as to successfully manage these challenges. The bottom line and the key success mantra would be innovation. In this background, the paper attempts to examine some issues, which would enable organizations to explore their business strategies in order to enhance their competitiveness, through innovation and market integration. The paper also emphasizes on building empirical models to illustrate the role of innovative strategies in business organizations, and how innovation could help organizations of developing countries, to compete with technologically advanced foreign organizations. The paper attempts to depict how innovation and market integration could benefit both domestic as well as foreign organizations in the long run.