Globalization, Innovative Activities, Firms in India
Globalization has forced many emerging markets to innovate new ways to remain competitive and attract investments in those countries. India represents a major emerging market struggling with major economic challenges that have resulted to the use of innovative technologies and strategies to capture the world's attention. Globalization has, therefore, forced companies to take up innovative activities in order to remain relevant both locally and internationally. This paper seeks to investigate the implications of globalization on innovative activities of firms by analyzing business environment features in India.
According to Jain, M. Trehan, and R. Trehan (2011), Indian economy can be classified using the following characteristics; underdeveloped, mixed and planned developing economy. For the purposes of this paper, the business environment in India will be classified as planned developing economy. India's planned developing business environment is characterized by development of information communication and technology (ICT) sector, institutional and structural changes, modernization, and development of infrastructure and industries. The government embarked on innovative activities that would attract investments in the country and improve the business environment in the country. Globalization has led to the country's current development path. Features such as technology, infrastructure, industrialization, and modernization are key elements that are driving innovativeness in the country.
[...] Globalization has led to the country's current development path. Features such as technology, infrastructure, industrialization, and modernization are key elements that are driving innovativeness in the country. Features that Promote Innovation Technology: With the world becoming more integrated, the country is at the lead in the export of its IT-services. Jain, M. Trehan, and R. Trehan (2011) indicated that the country accounted for 65 percent of IT-service global market. This development resulted from the efforts put in strengthening formal research and development sectors of the economy (Utz and Dahlman, 2007). [...]
[...] Lack of investment in the country may result to fewer companies investing in innovative activities in India. Corruption: Hambrock and Hauptmann (2014) indicate that corruption is one of the biggest hindrances to investment in India. While this vice is prevalent in many emerging markets, it presents a huge challenge to development and establishment of innovative activities by firms in India. Loopholes in government procedures allow corrupt individuals to stall establishment of companies in the country, which in turn, hinder the country's development. [...]
[...] Modernization: The complex concept of modernization forms the last feature of the business environment in India that affects innovation. Questions have been raised whether modernization entails westernization. In a bid to rid itself of westernization, India is developing into a modernized country laced with cultural and traditions that set it apart from other nations. This mix of modernization and culture puts the country at the forefront of innovation. Features that Hinder Innovation Inequality: the bulk of the India's population operates in the informal sector. [...]
[...] I. (2006). Globalization. San Diego, Calif: Greenhaven Press. Bhagwati, J. N. (2004). In defense of globalization. New York: Oxford University Press. [...]
[...] The agricultural sector in the country is not well established with very little technology being used. Innovative companies can invest in innovative ways of food production. Conclusion India's business environment is largely affected by globalization. The development of ICT sector, infrastructure, industrialization, and modernization all point to increasing globalization of the Indian economy. The challenges in the economy present viable opportunities for firms to invest. Companies can invest in the technology, infrastructure or the agricultural sectors that are expected to grow in the coming years. References Gerdes, L. [...]
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