Global Insights

Regional Heterogeneity and Firms’ Innovation: The Role of Regional Factors in Industrial R&D

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TypeConference presentation (keynote)
EventGlobalization of Production Models and Innovation in Emerging Economies
Organized byISID, CSH & CERCC
LocationNew Delhi, India
DateNovember 19–20, 2010
RoleKeynote presentation
SlidesDownload the presentation (PDF)

A keynote delivered at the International Seminar on the Globalization of Production Models and Innovation in Emerging Economies, New Delhi (November 19–20, 2010).

In short: Why industrial research and development concentrates so heavily in particular regions — and how a firm’s location shapes how much it innovates.

About the talk

This keynote examined why firms’ R&D activity varies so much by region within India — the role that regional factors play in industrial research and innovation. It argued that innovation is not evenly distributed: a firm’s location, and the regional environment around it, strongly influence whether and how much it invests in R&D, helping explain why some regions become innovation centres while others lag.

What the talk covered

  • R&D is geographically concentrated — industrial research clustered heavily in a few regions, with the top regions accounting for the large majority of national R&D activity.
  • Regional environment shapes firm innovation — knowledge infrastructure, skilled labour, the presence of research institutions, and industrial clustering all influenced firms’ R&D decisions.
  • Location as a determinant — beyond a firm’s own characteristics, where it operated helped determine how much it innovated.
  • Implications for innovation policy — building regional innovation capacity, not just firm-level incentives, matters for spreading R&D more widely.

Get the slides

The full presentation is available as a PDF:

⇩  Download the presentation (PDF)

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