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Innovation Network in IT Sector: A Study of Collaboration Patterns Among Selected Foreign IT Firms in India and China
Abstract
Multinational Enterprises usually keep their crucial R&D close to their home base. However, recent trends show that MNEs are increasingly offshoring their R&D activities. A couple of decade ago this R&D offshoring phenomenon was mainly restricted in the developed countries. Since early 1990's this paradigm has changed and many Multinational firms prefer developing countries as their R&D destination. Among developing countries, India and China are favorable destinations for many MNEs. The R&D alliance trends of foreign firms show that, in India they prefer Indian domestic firms and in China, they prefer universities and government research institutes. Government of both these countries should take policy measures to strengthen the linkages between foreign firms and local actor of innovation system. Also, innovation is no longer restricted to or confined within a firm's border. Firms are acquiring knowledge from outside its boundary by “Open Innovation Mode.”
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