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Foreign R&D Units in India and China: An Empirical Exploration

Swapan Kumar Patra

 

Abstract

Among the many other corporate activities offshoring of R&D by Multinational Enterprises (MNEs) is considered to be the least mobilized. Firms usually keep their crucial R&D activity close to their home base. However, since 1990’s MNEs from developing countries are offshoring their R&D activity to the developing Asian countries particularly in India and China. This study trace the growth of foreign R&D units in India, the location of R&D units and the major motives of foreign firms to choose India and China as the favorable R&D destinations. Study observed that there was a significant growth of new R&D units in the last decades. Firms’ prefers R&D locations in India where there are knowledge hubs in terms of educational institutes and trained manpower. The major motives of firms to prefer India and China are mainly ‘market driven’ and ‘technology driven’.    

JEL Classification Code: O32, F23

Keywords: Multinational Enterprises, Foreign R&D, India, China

 * Post-Doctoral Research Fellow, Tshwane University of Technology, Pretoria, South Africa email: This email address is being protected from spambots. You need JavaScript enabled to view it. , This email address is being protected from spambots. You need JavaScript enabled to view it.

The full paper is submitted to African Journal of Science Technology Innovation and Development in the Special Issue on various issues of BRICS Countries

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Science and Technological Capability Building in Global South: Comparative study of India and South Africa

Swapan Kumar Patra* and Mammo Muchie**


Abstract
Economic success of a nation is highly related to Scientific and technological capability building. Therefore, both industrially developed and developing nations follow explicit strategies to increase their technological competency. However, technological capability building cannot be completed in isolation. It is a long term process and requires a country to pass through different phases of learning, infrastructure development, human resources management, and institutions building. This paper analyses Indian and South African scientific and technological capability through the major input (R&D expenditure, manpower) and output indicators (Technology balance of payment, scholarly publication, patents and so on). To measure the technological capability of these two emerging economics, this study uses World Bank data for R&D expenditure and R&D manpower, scientific publication data from Scopus database and patents granted in United States Patent and Trademark office (USPTO) database.  The study observed that in India is ahead of South Africa in some respect but in some areas South Africa’s performance is quite good. The study concludes with the policy recommendation from the developing countries’ particularly the South African perspective which includes the technological learning through the increasing collaboration between foreign firms and the local firms or institutions.


Keywords: Technological Capability, Scientometrics, Bibliometrics, Patents, India, South Africa  


* Swapan Kumar Patra: Post-Doctoral Research Fellow, Tshwane University of Technology, Pretoria, South Africa email: This email address is being protected from spambots. You need JavaScript enabled to view it. , This email address is being protected from spambots. You need JavaScript enabled to view it.

** Mammo Muchie: DST/NRF Research Professor, Tshwane University of Technology, Pretoria, South Africa, ASTU, Ethiopia and TMDC, Oxford University, UK. Contact: This email address is being protected from spambots. You need JavaScript enabled to view it. & www.sarchi-steid.org.za/

Innovation Research for Integrated African Development: Colloquium for Journal and Book Publication, (9th -11th March 2016) Tshwane, Pretoria, South Africa (paper is under review for the forthcoming book chapter)

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