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Intellectual Property and Innovation: Changing Perspectives in the Indian IT Industry

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  • Basant, Rakesh

Abstract

Indian government has undertaken significant modifications in the IP regime of the country. This will lead to a realignment of business strategies by firms in several sectors. Similarly, with liberalization and globalization, new opportunities for IP creation may emerge for Indian firms. In this context, the paper attempts to document the emerging perspectives vis-à-vis IPRs in the Indian IT industry and explore factors that are driving the change in perspectives. Large IT firms and firms in high-end niche areas are proactively seeking IP based growth strategies. While they typically seek IP protection in Western nations and not so much in India, this has led them to perceive restrictive IP regimes more positively. IP regimes in the West are more relevant for IP creating Indian IT firms today but this may change in the near future as Indian market expands. Significant IP creation by MNC subsidiaries in India is also contributing to this change in perception. Survey data show that an average IT firm in India also perceives IP protection as an important appropriability mechanism, but access to markets and relevant complementary assets continue to be more important for appropriating profits from their economic activity. A positive view of the restrictive IP regimes also gets reflected in the demands of Indian industry associations for changes in the Indian law. Broadly, these changes in perceptions seem to be linked to the evolving global production networks, changing activity profile of Indian IT firms, emerging business opportunities and changes in the competitive scenario. The understanding of Indian IT firms of the complexities of IP regimes remains rudimentary and they will need significant preparation to deal with these IP related challenges.

Suggested Citation

  • Basant, Rakesh, 2004. "Intellectual Property and Innovation: Changing Perspectives in the Indian IT Industry," IIMA Working Papers WP2004-06-05, Indian Institute of Management Ahmedabad, Research and Publication Department.
  • Handle: RePEc:iim:iimawp:wp01828
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    File URL: https://www.iima.ac.in/sites/default/files/rnpfiles/2004-06-05rakesh.pdf
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    References listed on IDEAS

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    1. Greg Linden & Deepak Somaya, 2003. "System-on-a-chip integration in the semiconductor industry: industry structure and firm strategies," Industrial and Corporate Change, Oxford University Press, vol. 12(3), pages 545-576, June.
    2. David J Teece, 2008. "Capturing Value from Technological Innovation: Integration, Strategic Partnering, and Licensing Decisions," World Scientific Book Chapters, in: Technological Know-How, Organizational Capabilities, And Strategic Management Business Strategy and Enterprise Development in Competitive Environments, chapter 12, pages 237-252, World Scientific Publishing Co. Pte. Ltd..
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    Cited by:

    1. Basant, Rakesh & Chandra, Pankaj, 2007. "Role of Educational and R&D Institutions in City Clusters: An Exploratory Study of Bangalore and Pune Regions in India," World Development, Elsevier, vol. 35(6), pages 1037-1055, June.

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