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