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India Inside: The Emerging Innovation Challenge to the West by Phanish Puranam, Nirmalya Kumar

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3   Outsourcing InnovationR&D Services on Demand

ASK THE PROVERBIAL source on the street to name some companies at the global fore-front of technological innovation, and you are likely to hear names such as AstraZeneca, Boeing, Cisco, Ericsson, IBM, Novartis, Nortel, Motorola, Nokia, and Xerox. However, few might realize the role of Indian companies in the innovation processes of these global companies. MNCs headquartered in the developed world are increasingly outsourcing their innovation (R&D, product development) processes to Indian firms.

What qualifies as true R&D outsourcing—a practice also referred to as innovation on demand or innovation outsourcing—is sometimes difficult to determine, because the jargon in this field feels nearly impenetrable. ...

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