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11 June, 2008

How India and China fare in research and development: study report

The following message from Vivek Wadhwa, a technology entrepreneur who is currently a fellow at Harvard Law School and executive in residence at Duke University, about his latest research projects has been circulated by SAJAforum.

From: Vivek Wadhwa

As you know my team at Duke and Harvard has been studying the globalization of industries. We are about to release our first report in a series which shows how India and China are becoming major players in global R&D. Even though China is investing hundreds of billions of dollars into next-generation plants to turn the country into an export power in semiconductors, passenger cars, and specialty chemicals, India is ahead in innovation and R&D.

We observed that in the aerospace industry, Indian companies are designing the interiors of luxury jets, in-flight entertainment systems,
collision-control/navigation-control systems, fuel-inverting controls, and other key components of jetliners for American and European corporations.

In the automotive industry, Indian engineers are helping to design bodies, dashboards, and power trains for Detroit vehicle manufacturers.

In telecom and computer networking, Indians are developing futuristic technologies for the intelligent cities which are being constructed in the Middle East. Indian engineers are also developing technology behind the next generations of cell phones for European and American companies.
The first in our series of reports looks at the pharmaceutical industry.

Highlights of the report:

Through detailed interviews with executives of 16 pharmaceutical firms in China and India on their business models, value-chain activities, partnerships and technology capabilities, the researchers found that:

1. Indian and Chinese companies are making strides in the most lucrative segments of global value chains. In less lucrative segments, such as preclinical testing, animal experimentation and manufacturing, Chinese firms appear to be more prevalent.

2. India is regarded as a more mature venue for chemistry and drug-discovery activities than China.

3. Domestic Indian and Chinese firms rarely have the capital and the
regulatory expertise to develop a drug beyond phase II clinical trials. Their commercial development of new intellectual property therefore necessitates relationships with major multinational corporations.

You can see the full press release and download the report itself at

You can also post your comments there.

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