Linkages between the Indian Innovation System and MNE R&D Centers in India

Abstract

The rise of developing economies (such as India and China) as new knowledge powers is reshaping the global innovation landscape. In a related vein, R&D has been increasingly globalizing beyond the triad region, multinational enterprises (MNEs) being the primary drivers of this shift, with India and China again emerging as prominent destinations for these transnational R&D activities. This article explores, through an analysis of scholarly and gray literature, along with semi-structured interviews of researchers and research managers in India, the landscape and dynamics of a broad range of linkages between MNE R&D centers in India and Indian higher education and research institutes, businesses, startups, and policy makers. We also focus on understanding how these linkages influence the technology innovation capabilities across the Indian innovation system. We then suggest key lessons and opportunities for Indian policy makers, university administrators, and MNEs, to expand and deepen the linkages and strengthen these capabilities.