Towards Better Models
Edited by Stefan Kuhlmann and Gonzalo Ordóñez-Matamoros
Chapter 11: Policy spree or policy paralysis: an evaluation of India’s efforts at encouraging firm-level innovative activities
India has been on a policy spree attempting to increase the level of innovations by domestic firms. For this the government has announced a series of policies both at the aggregate level and across specific sectors. The chapter undertakes a survey of various policies and focuses its attention on two specific policy instruments, enunciated first to subsidize R & D and second to improve the articulation of intellectual property rights so that firms are able to improve their R & D efforts. Analysis of the policy outcomes shows us that investment in R & D has been concentrated in a few industrial sectors, and there is ambiguous evidence regarding the improvement of R & D performance.
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