Publication

Abstract : Till the end of 1980’s offshoring of R&D by TNCs were mainly confined to industrially advanced countries particularly among the ‘Triad’ (US, Europe and Japan). Even if TNCs moved to the developing countries, during the early to mid-1990s, their R&D activities were mainly restricted to ‘one way technology transfer’ or oriented towards ‘adaptive R&D’ rather than ‘creative R&D’. This study finds that during the last two decades this paradigm has changed significantly. India has emerged as an important destination for about 471 TNCs with about 649 R&D units. Indian R&D and innovation threshold has moved up quite dramatically in the last decade to transform from ‘one way’ to two way knowledge transfer. Now many foreign R&D units are developing products from India for their global product mandate. The exploration of TNCs and their impact in the Indian context advances the view that India is emerging as an important partner in the globalization of innovation. Another important trend of globalization and the global nature of innovation emerging is the rise of the Indian firms which expand business and link up with the global production networks.