China and India are two of the world’s largest and fastest growing economies. Increasingly, these economies are moving from low-end manufacturing and services to being driven by innovation. This chapter reviews the innovation landscape of China and India and documents the innovation activities of multinationals and domestic firms in the two countries. It identifies similarities and differences in the innovation approaches of firms in these countries and ends with a discussion of the implications of innovation in China and India for research and practice. In terms of practice, the chapter considers how Western multinationals can address the challenges that China and India pose as these countries accelerate their focus on innovation.
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