The Internationalization of Corporate R&D

THE INTERNATIONALIZATION OF CORPORATE R&Dvestment and high-tech trade. China has also been ahead in designing and implementingpolicies that can attract foreign direct investment and boost exports, the establishmentof a large number of well-endowed science parks, large scale and generallyrapid implemented public sector investment in physical infrastructure, higher educationand R&D. This has been coupled with a wide range of efforts to ensure that foreigncompanies have R&D operations in China and to attract qualified Chinese students andprofessionals overseas to return and to boost English language education in China. Developmentstowards greater integration in the international economy have concurredwith an ideology of determined political, economic and technological nationalism(Mitra 2006b).India on the other hand has certain advantages, such as a long standing dynamic privatesector and entrepreneurial class covering a wide range of sectors, the availability ofwell educated persons with English language competencies coupled with a long traditionof close cultural, economic and technology ties with advanced western nations.Indian individuals have proved successful working in international teams and adjustingto foreign cultures. India also has a more favourable track record in corporate-competitionlaw, intellectual property right legislation and systems for enforcement, maturityof financial structures, established democratic institutions and practices and a rapidlyadvancing ICT and KPO industry (Mitra 2006b).From a corporate strategy perspective, the issue is not weather priority should be given toIndia or China – both offer major market, production and technology development opportunitiesin goods as well as services sectors. Both are poised to be major economic andtechnology powers. It is however hard to predict how the development of internationalcorporate R&D in the two countries will unfold and which country’s performance willexceed the other in the long term. The conclusion is that R&D development in China aswell as India deserves close attention as both economies (and their Diasporas) are likely tobe major R&D powers within the next 10–20 years (Mitra 2006b).11.6.3 Policy Implications for SwedenConsiderable progress has been made in developing Swedish-Indian economic and technologicalties. The efforts of Swedish corporate, government and academic institutions todevelop links with India have, however, been modest compared to the attention given to forChina and Japan. Moreover, many Swedish companies have no significant experience withIndia-related R&D operations, and Sweden is behind other industrial nations in terms ofeducational exchange and academic collaboration with Indian institutions.It is essential to promote academic and private partnerships with Indian companies,universities and other R&D oriented institutions. Development of educational and scientificexchange programs and nurturing ties with the Indian Diaspora are all importantstrategies for fostering long-term R&D ties between the two countries.300