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

Authors: N. Mrinalini

Addresses: National Institute of Science Technology and development Studies, K.S. Krishnan Marg, Pusa Campus, New Delhi 110012, India; Institute of Economic Growth, University of Delhi Enclave, North Campus, Delhi 110007, India

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.

Keywords: FDI assessment; FDI monitoring; foreign direct investment; host countries; R&D globalisation; linkages; foreign R&D centres; India; innovation systems; innovation dynamics; research and development; spinoffs.

DOI: 10.1504/IJICBM.2009.021599

International Journal of Indian Culture and Business Management, 2009 Vol.2 No.1, pp.95 - 110

Published online: 30 Nov 2008 *

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