"India Noses Ahead as R&D Hot Spot"

"India Noses Ahead as R&D Hot Spot"
United Press International (10/19/04); Basu, Indrajit
Multinational companies are building research and development laboratories in India at a frenetic pace, with the current count heading toward 150 research centers. Companies such as IBM, Texas Instruments, DaimlerChrysler, and Hyundai have spent millions of dollars to take advantage of India's vast talent pool. This investment puts India ahead of other international research hot-spots, such as Japan, Israel, Western Europe, or China. Japan's National Science Foundation conducted a survey that found 33 companies out of the BusinessWeek 1,000 had R&D operations in China. Many of the laboratories in India are focused on developmental work, not fundamental research of the type that leads to Nobel Prizes; but that does not mean Indian research is insignificant. Intel, for instance, filed 63 patents from its Bangalore facilities last year--outstripping its other labs in Israel and Malaysia. The international focus on India-based research has also spurred research investment from domestic companies as well, such as Tata Motors, which currently has a groundbreaking $2,400 car on the drawing board. Before economic liberalization in 1992, Indian firms had little incentive to innovate because markets were closed, but now the competition has awakened a need to compete and even develop new products. Geography also plays a role in India's popularity. Oracle's Murali Subramanian says the 12-hour time difference between the U.S. and India enables around-the-clock software development when synchronized with the company's developers in California. Although analysts say India's advantages may be temporary, move companies continue to open R&D offices there; Google is latest company to say it will establish an R&D base in India.
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