The Indian Automotive Industry: Enhancing innovation capability with external and internal resources
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India s automotive industry is one of the successful cases of India s economic liberalisation strategy set into motion since 1991. The industry which was dominated by a few domestic manufacturers was hardly known for any innovations before 1991, but is now one of the fastest growing manufacturing industries not just in India but globally as well. The paper identifies the internal and external sources of information on innovation to the firms within this industry, some of which are domestic while others are affiliates of well-known automotive MNCs. The ensuing analysis shows the domestic firms depend on internal sources, while the foreign firm focuses almost entirely on external sources of technology.