Technological Innovation and Economic Development

This paper examines the trends in R and D expenditure in different areas between 1994-95 and 1999-2000 linking this expenditure with the economic importance of the areas. Based on this assessment some suggestions are made for fostering and supporting technological innovation that can lead to accelerated economic growth. A clear policy imperative is that proper measures must be taken to make Indian firms and industries more competitive in a global context. The analysis indicates that agriculture and mainstream industries are the major current drivers of the Indian economy. These are the areas where technology inputs can make India globally more competitive. Bridging the gaps between needs and technology and creating the right conditions for large-scale diffusion of such technologies is one of the great challenges facing Indian R and D.