Kale, Dinar (2012). India. In: Amann, Edmund and Cantwell, John eds. Innovative firms in emerging market countries, Volume 1. Oxford: Oxford University Press, pp. 148–191.



India presents an interesting example of a country with immense economic potential, cultural diversity, and income inequality within its population. Over the years the Indian economic policy framework has moved from a state directed model to a market-dominated export-oriented economy. This chapter presents case studies of the Indian pharmaceutical and automobile industries. They show, within this shifting policy context, how firm-level technological capabilities have evolved. The case studies also show the key role of managerial vision, the influence of MNC firms, linkages to knowledge sources outside firms,and the entrepreneurial facility with which Indian firms have moved from imitators to innovators. In the case of pharmaceuticals, much of the innovation has been “behind the frontier,” yet it has resulted in a rapidly expanding,internationalizing sector catering to customers at the “bottom of the pyramid.”

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