7   India’s Innovation ChallengeOvercoming Institutional Constraints

IN MANY WAYS, India has begun to evolve from a leader in the services outsourcing sector to an innovation destination. Yet, it would be foolhardy to minimize the considerable challenges that still confront the country on its journey to becoming a global innovation hub.

To be clear, we are not speaking here of the problems of basic infrastructure: sanitation, health, and poverty—enormously important as they are. We are not even speaking about the general business climate—which remains dismal with India ranked 134th out of 183 countries in The World Bank’s 2011 ease of “Doing Business” report.1 The cost and complexity of dispute settlement and contract enforcement is especially ...

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