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Changing innovation dynamics in India: the role of foreign direct investment in research and development activities

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  • N. Mrinalini

Abstract

In India, the foreign Research and Development (R&D) centres are growing in number and these R&D centres are clustering around certain centres of excellence, engineering institutions, universities, etc. Just to cite an example, USA has the maximum number of R&D centres and almost 65% of their total R&D investment in India is towards software development followed by 16% in hardware and product development. These foreign R&D have established linkages with the scientific institutions, universities and also local firms to have continuous access to human resource and Science and Technology (S&T) infrastructure. The paper proposes the need for assessment and monitoring of Foreign Direct Investment (FDI) for their linkages and outcomes and presents a typology of the probable spin-off effect.

Suggested Citation

  • N. Mrinalini, 2009. "Changing innovation dynamics in India: the role of foreign direct investment in research and development activities," International Journal of Indian Culture and Business Management, Inderscience Enterprises Ltd, vol. 2(1), pages 95-110.
    • Handle: RePEc:ids:ijicbm:v:2:y:2009:i:1:p:95-110
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